Questions to ask HOA if buying rentals in HOA community...

Questions to ask HOA if buying rentals in HOA community...

Investor · CO · Member since 2016 · 36 posts · 8 votes

Sorry if this has already been answered somewhere but if am going to buy a 3BR SFH in a community where there is HOA (if I cannot find one with no HOA unfortunately!!) and I plan to live in this SFH for at least a few years (less than 5 though!) and then I plan to rent it out long-term. If I find such a SFH, I am going to ask HOA the below questions.... if I left anything important out please let me know. I am trying to know what to ask about HOA's rental policy. Thanks in advance!

1. What is your policy on rental properties?

2. Can property just purchased be immediately rented out or must it be owner occupied for X period of time before being able to be turned into a rental with a long-term tenant? 

3. Is there an owner/renter ratio that must be met? If so, what is the MAX number of properties that can be rentals?

4. How many properties are in this entire community and how many are OWNERS and how many are RENTERS?

5. Can I be CONFIDENT that rental properties will *never* be banned in this community or is there possibility that all rental properties might be banned at some time in the future?

6. Are seasonal renters allowed or long-term only?

I don't know what other questions to ask HOA... I'm sure I left some important things out? I HOPE to not have to deal with HOA... but I am already preparing myself to Unfortunately! Because the area I want to buy this property in has lots of HOAs. Most are averaging $60/month in HOA for the time being. But it's the CONTROLLING factor I am worried about!

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  • Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
    4y

    Those are a good starting point but there is more. See my reply in this thread

    https://www.biggerpockets.com/...

    Asking if you could be confident that rentals will never be banned (or more regulated than they currently are) is like asking the IRS if you could be confident that taxes will never change. You’ll get a set of disclosures that are in effect today. Read them (you might even find some clues as to how the community feels about rentals overall by reading minutes, existing rules, community newsletters if you are lucky to get them as part of that 500+ page set of disclosures). Once you buy, you are a member of the community that self governs many things. Your level of involvement in that is up to you. You’ll have plenty of opportunities to participate, provide feedback and, yes, vote. If the community you are a part of decides to change rental rules there will be due process (you’ll be welcome to participate; whether or not you choose to do so is up to you).


    and nothing is ever guaranteed. Even if "the HOA" changes nothing, you are still subject to city, county, state, and federal regulations and we've all seen plenty of changes at all of those levels over years across the country (more so with short term rentals but plenty with long term rentals as well). Good luck on your journey - the best advice I can offer is stay involved and up to date with the ever changing landscape no matter what business you are in, I might add, whether it is operating rentals or a gas station around the corner :)

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