HOA: Your Best Frenemies

This post is going to go through some basics for any new STR investors who haven't had to work within an HOA before, to let you know what to expect and be mindful of to create a successful relationship with your HOA! 

Two of the most major Questions to ask when searching for areas to purchase a new STR investment property:

1. Does this township allow STR rentals?

2. Does this HOA allow rentals? 

As a real estate agent this knowledge is baseline when selling to STR investors, and as a property manager a constructive relationship with your HOA is key.

Your HOA truly can dictate what your STR path looks like. Even if your HOA allows STR’s, keep in mind that they may not necessarily welcome them (this unfortunately is a major detail). An HOA that technically allows STR’s, but is generally against them, can be just as hard to work with as an HOA that does not allow them.

Where to start?

You can easily look up online what townships allow STRs, and remember you can always call and ask if the information is not available online! The same goes for an HOA, and relationship building is important to get right from the start!

If you are able to, stop in, in person, to the HOA that you are interested in buying in, and let them know you love the neighborhood, and are thinking of purchasing property there. The response to this alone could be enough to give you an understanding of HOA feelings on STR. Despite the fact that inherently this shouldn’t affect your ability to rent in the area, it very much can, through ease of ability to obtain permits, registration, as well as mitigate any guest/HOA issues that may come up during a stay.

Important things to understand about your HOA

Registration:

1. What is the cost of the HOA registrations? Ensure this is included in your listing as a “Community Fee” so guests pay back registration fees and these fees don't dig into your net profits.

2. Are there any fees for late registration or changes to registrations? If so make sure you have a plan of action on submitting registration in time, and set up advance notice days for booking to avoid late registrations. Make sure guests are aware of these timelines as well and get their party information to you promptly. 

3. Does guest registration contain any community amenities? If not, what are the additional costs and how will you make guests aware and able to access them?

4. If the guests violate any of these registration instructions what are the repercussions/ fines, and have you made guests aware that they may need to pay any fines incurred?

House Usage:

1. When you speak with the HOA, ask for a copy of their rules, and show your interest in ensuring you and any guests you have want to comply with any HOA regulations.
2. Make sure that you have the HOA rules POSTED in your house rules as well as in your house (or welcome messages) so guests can address them. Make sure burning rules, quiet hours, and any other rules are posted.
4. Community Amenities: Use these as positive points in your listings, "Things to do" points in your guidebook, and hours and accessibility for guest knowledge. I would also add a disclaimer that amenity hours and closures are subject to change without notice to avoid any negative pushback in the event that an amenity is inaccessible for whatever reason.

Fees and Fines:

Most HOA’s will have an online portal, and allow you to keep a card on file to pay registration fees, and any other fees and fines for the HOA as needed. This is a great way to ensure you do not miss or get behind on any payments and stay on your HOA’s good side.

Overall HOA’s often come with some great benefits that increase the quality of quest stays drastically. These can include amenities like access to beaches, pools, sports courts, hiking trails, a clubhouse, increased security and so much more! Make sure when seeking the perfect HOA for your STR investment property you ensure that the HOA is the right fit for you and your future guests!