Watch out for HOAs for your rent houses

[Shawn Thom]

There have been a few discussions on this topic but I thought I'd post it again for visibility. Watch out buying a rent house where an HOA is involved. I have lived in my single family home since 2000. I am an owner occupant but plan on adding this house to my rental portfolio eventually. I do have rentals outside of this community. HOA came up with a new set of rules that regulate rentals. They did not seek owners comments etc. They made rules due to some issues with some landlords/tenants. They have many landlords in an uproar. There are a few of us owner occupants that are upset to as we have planned on renting our houses at some point. there current plans involve the owners asking for permission every 3 years to be a rental. there is no grandfathering. Obviously that makes it hard to do business.

When you buy via MLS, disclosing the HOA and its bylaws/rules are often part of normal documentation disclosure.... but buying via a wholesaler maybe a little different so make sure you know or ask.