Posted on March 19, 2021
Owning a home within a Condominium Association or Homeowners Association has a lot of benefits, but before you rent your home, there are some things you should know.
If you own a home within a Condo or HOA and wish to rent it out, your first step is to make sure that the Governing Documents of the Association allow renting. The Declaration and/or Bylaws of some Associations will outright prohibit renting, while others will limit the amount of rentals and some will have no restrictions at all. There will usually be an article in the Bylaws dedicated to the leasing policy, but if not, you can probably find this information under the "Use Restrictions" headline. While the authors of Governing Documents usually reference leasing explicitly, you should also look for language such as "owner-occupied" or "non-owner occupants." If you are unable to find this information, a quick call to a Board member or the Management Company should do the trick.
Even if leasing is permitted, you still have a responsibility to communicate with a representative of the Association, be it a Board member of Property Manager, and take steps to ensure that your leasing arrangement is in compliance. Here are some requirements you may face:
- You will almost always need to provide the Board with a copy of the lease and contact information for the tenants. This is important in case there is a maintenance emergency, such as a leak from an adjoining unit.
- You may need to include language in your lease that the tenants are bound to the Bylaws, Rules and Regulations, and other requirements established by the Association, even if their rules are not otherwise in the lease. Remember that even if your lease does not contain this clause, your tenants are bound by the Governing Documents of the Association and if they fail to comply, you can be held responsible! Because of this, even if it is not required, it is wise to include this language in your lease.
- Note: If there is a conflict between your lease and the Association rules, the Association rules will always supersede the lease.
- Some Associations will have a lease addendum that your tenants need to sign. These are usually single-page, relatively basic documents that provide assurance to the Association that your tenants will abide by the Bylaws.
Once you have learned if the Association has any leasing restrictions, make sure you are familiar with the Association's pet rules. If pets are not permitted or if there is a size limit, it is your responsibility to ensure that your renters abide by these rules.
It is important to remember that even though you have provided the Association with your tenants' information, you are still the primary contact for the Association and the Board members and/or Management Company are usually unable to speak with tenants regarding the home. If you have hired a professional Management Service such as Staffordshire Realty, it is important that you provide the Association with this information so that your Property Manager can make calls to the Association representative as needed.
Even though Condominium Associations and HOAs cover much of the exterior maintenance of the home, your tenant should always call you or the Property Manager for maintenance concerns. If the issue is the responsibility of the Association, either you or the manager will reach out to the Association representative to coordinate the repairs.
Remember, if you are ever unsure, you can reach out to a qualified property manager like Staffordshire Realty and we can handle all of the communications and details with the Association!