Allowing rentals in an HOA community is a long-disputed topic for many boards. The fact is over 40% of Colorado houses dwell in an HOA. That's a large chunk of the population which makes it more likely that people in your community will want to rent at some point.
To ensure that your HOA and its members approach the topic of rentals the right way, we've put together this quick guide. Keep reading to learn the top dos and don'ts that'll help make HOA rentals a success for everyone in the community!
Do: Know HOA Policy
All HOA boards need to know the local policies inside and out. While most of the time, the HOA itself sets the rules, sometimes local laws play a large factor.
It's also crucial that you make this information easy to access and readily available for all of your members. This keeps the guesswork out of the process so that everyone can approach setting up a rental in an approved way.
Don't: Waive HOA Fees
Fees are a vital part of HOA living, and renting out a home doesn't mean that the owner can skip out on these fees. It will remain their responsibility to ensure that all of these fees get paid in good time, regardless if they're renting or not.
Do: Prepare for Issues
Although the tenants may stay on an HOA property, this doesn't mean that they'll know all of the rules of the community. While it's up to the owner to outline the HOA policies and rules, the tenant may not follow them.
You'll want the board members to think of this situation much like you would a newcomer to the community. The renting tenant most likely doesn't have any harm in mind when they break a rule, like putting up holiday decorations that go against the HOA's code.
It's good to allow leniency but to remain firm at the same time. Repeated offenses by the same tenant should result in stricter fines or compensations.
Don't: Ignore Communication
No matter the situation, communication is a vital part of a successful HOA. Members should always inform the board about their intention to rent. Board members should let the owner know if there are any problems with the renting tenant.
Sometimes these interactions can be difficult if you live in a close-knit community. That's why many communities rely on HOA management companies to take over these kinds of communication issues so that there's always an impartial party involved.
Handling Rentals in an HOA Community
As long as you stick to local and HOA rules and prepare yourself accordingly, rentals in an HOA community can provide extra income. If you struggle to juggle all of the details, think about hiring a management company to do that tedious work.
PMI Pikes Peak is a company based in the Colorado Springs area that can do all that for you, and more. We understand how to make sure your HOA and your rental business work together for greater success. Contact us today with your current issues, and we can set you up with one of our experts!
