Should rental amount include HOA

[Patrick Stuckwish]

Hello everyone! I know that HOA fees are ultimately due by the property owner, but my question is:

Should the rental amount include HOA fees or should HOA fees be an addition to the rental amount?

My thought process is.... if the average rent in an area is $1000 and HOA fees are $300 should I charge $1300 and be at the high end of the rent curve or should I charge less and have the HOA fees come out of the cash flow in order to keep rent near the middle of the rent curve?

Thank you in advance for your help!

[Kenneth Garrett]

@Patrick Stuckwish

I would look at other rentals within the HOA and see what there getting. No utilities is a big plus. Make sure there is no restriction on the number of rentals. In my area, we have some HOA's restrict the number of rentals.

Cash flow of $50-$100 is very low.  Are maintenance,repairs, pm, capex included in your cash flow.  The equity is nice, but if any repair is required it will put your cash flow in the negative.  I always look for minimum cash flow in the $300 +- range.