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Updated about 5 years ago,
Housing Hacking in my HoA
Hello!
My name is Nolan and I am a pharmacist at your local big box stores and this is my first post on the website since listening to the podcast back in May of this year! I knew I had to start my journey of "getting out of the rat-race" and I ended up purchasing a newly built home that is part of an HoA. I want to rent a couple of rooms out to start saving quicker for my first BRRRR. The tenants would just be roommates sharing the living room, bathrooms, kitchen, yard, etc. I want to see if the way I am interpreting the rules of my HoA makes sense regarding renting.
According to the covenants:
(a) no owner may lease less than his entire Lot; except as otherwise herein provided
(b) all leases must be in writing
(c) all leases shall provide that the terms of the lease and lessee's occupancy of the lot shall be subject in all respects to the provision in the Declaration, the Articles of Incorporation, the Bylaws, and these rules of the Association. Any failure by the lessee to comply therewith shall be a default under the lease
(d) any owner who leases his or her lot shall within ten (10) days after the execution of such lease, forward a copy of the same to the Association or the Association's Managing Agent
(e) no owner may lease his or her lot for a term shorter than one month, or in a manner that allows different occupants to occupy the lot for transient or hotel purposes
They also go on to define transient and hotel purposes as "AirBnB, Vacation Rental by Owner, employee housing,"[etc.] and then state at the bottom that:
"Any 'Lease" or act of 'Leasing,' for the purposes of these rules, is defined as regular, exclusive occupancy of a lot by any person other than the Owner; provided, however, that the leasing shall not include the occupancy of the lot by the child or parent of an owner. Occupancy by a roommate of an owner who occupies the unit as such owner's primary residence shall also not constitute leasing".
From my interpretation, if I have people living with me in my spare rooms, they would be considered roommates since I am also occupying the unit. Any lease that I make with the roommates will not be recognized by the HoA according the above definition, but would be recognized upon a court of law (I would assume). Or I could construct a roommate agreement, but would lose some Landlord rights?
What are some of your thoughts?
Thanks!
Nolan