Is the HOA responsible for covering my rent?

Question

I have a rental in an 18-unit condo. The HOA took a month to repair a leak into my unit and I was unable to rent the unit out during that time. Are HOAs responsible for paying for my missed rent while they made repairs? Nothing in the bylaws addresses this specifically.

Thanks for your expertise and opinions!

Jay Thomas · Answer

Whether your HOA is liable for missed rent during repairs depends on the specifics outlined in your HOA documents and state laws. If the leak originated from a common area, the HOA might be considered negligent in maintaining those spaces, potentially making them responsible for damages. On the flip side, factors like the content of your HOA bylaws and your state's laws regarding landlord-tenant rights and HOA responsibilities come into play. Take a close look at your HOA bylaws to see if they address situations similar to yours, and familiarize yourself with your state's laws. Strengthen your case by collecting evidence like photos, videos, repair invoices, and communication records. When reaching out to the HOA board, be sure to express your claim for missed rent politely but assertively.

Bo Bond · Answer

Unfortunately no, that's your business income to protect, not the HOA's.  This should always be covered by your business/landlord policy as an investor, and it's most commonly called business income protection or loss of rents protection.

Same holds true if you were to actually live in that unit.  The cost to move out after damage to the unit is not on the association, it's on you and covered by your personal insurance policy.  That coverage is called extra expense protection.  It covers the extra expenses you incur to have to move out of your unit and move in somewhere else until the work is completed.

Both of these situations hold true 99.9% of the time.  I'd say 100%, but there's always that one situation completely unique to most.

Now, it sure wouldn't hurt to ask the condo association to reimburse you for this loss of income, but you shouldn't expect it.

As Greg mentions above, you could certainly sue the HOA, but would you really do that for just one months worth of rent (maybe $1k-$3k)?  I assume you could, but get ready to pay way more for representation, wait months for the legal processes to work it out, oh, and the burden to prove the condo association was negligent and owes you money is up to you and your attorneys.  You have to have a solid case to find the association negligent, and prove it.

Water losses happen all the time in single-family homes, condos, and townhomes.  It's rarely caused by the HOA's negligence or the unit owners/tenants negligence, no matter where the leak originates.  Most of the time it's just an unfortunate and unforeseen issue that leads to the water damage.

In other words, there's nothing anyone could have done to keep the loss from happening.  Pipes get old, foundations & walls shift, things happen.  It doesn't matter where the loss originates either, whether it comes from a common area of the HOA or from your own unit.  Each party pays for the items they're responsible for protecting per the governing documents of the association.  The HOA files their claim, and you file yours.  The HOA's policy provides coverage for common area property that was damaged (walls, trim, floors, etc.) that they're responsible for insuring, and your policy takes care of what you're responsible for insuring.  Some condos require the unit owner to take on most of the responsibility for insuring their physical unit, while some condos insure all the physical components of the unit under their master policy.  Either way, when it comes to your rental business and loss of rental income, it's your landlord policy that will respond with coverage 99.9% of the time.

Hope this helps.  Sorry you're having to deal with this loss, but glad to hear it wasn't a lot worse.

Greg M. · Answer

Possibly. Was the amount of time to fix the leak reasonable? If not and as a result you incurred losses, the HOA could be liable. Your recourse would be to ask them for compensation and when they tell you to get lost, you would need to sue them.

Theresa Harris · Answer

If you had it rented and the tenant couldn't live there, then you should go through your insurance. If it wasn't rented, then you are out of luck.

Russell Brazil · Answer

No