HOA and rental

[Shakil Ahmed]

I have been in the search for sometime. My general assessments (this year) so far are, most HOAs are not rental investor friendly or have too many restrictions, costs etc. - way too may issues renting, updates, policies, rules, repairs etc. This is based on limited no. of States - couple of states including FL mainly.

I am very close deciding not to pursue rental property with any HOA and/or CDD.

Would love to hear experiences/guidance from SMEs here.

Thank you

[Bradley Buxton]

@Shakil Ahmed

HOAs are all different and there are advantages for landlords. In SFH neighborhoods with HOAs they are generally lower cost and keep the property values up by not allowing "yard art". This is an advantage for an investor. Larger condo associations are more problematic. There are usually a vocal minority that has the time and energy to be on the board and can push anti-investor NIMBY policies. Where I live in Lake Tahoe, Nevada there are HOA associations have been poorly run, multiple insurance claims from snow damage, and as a result are increasing fees to cover the low fees of the past and capital expenditures that have been put off for years. Are all HOAs bad? No. I advise my clients to look at the financials and recent meeting minutes. IF possible talk with other owners about what is going on. What I have found is the smaller the HOA the better for the investor.