Landlord -vs- HOA

How to Keep the Peace

The landlord — HOA relationship can have many benefits and be a great way to build a harmonious partnership within a community. However, there are times when an HOA embraces an “us -vs- them” mentality that benefits no one. 

When an HOA oversteps to create a complicated rental relationship, it is crucial to understand best practices and the fundamental rights of both the HOA and landlord. To help, Oak City Properties took some time to dive deeper into the issue and provide advice on how to help keep the peace on the Landlord -vs- HOA front.

What is an HOA? Basic Version

The purpose of an HOA (Homeowner’s Association) is to protect property values, promote safety, keep aesthetic appeal, and improve the quality of the neighborhood. The HOA sets the tone for the community and establishes standards for what homeowners should do and refrain from doing. 

When an individual purchases a home within an HOA, they accept and agree to the terms and conditions outlined in the HOA covenants. They are signing a “contract” to follow the rules and regulations outlined by the community and association members. 

When HOA’s Go Bad

Covenants and restrictions form the basis of a Homeowner’s Association and can sometimes lead to a power struggle between the HOA and property owner. Unfortunately, there are times when an HOA wields their power too forcefully and infringes on the fundamental constitutional rights and common law rights of the homeowners. The general standard is that an HOA must possess “reasonable” covenants that promote an interest in the community to increase or maintain property values. However, what happens when the covenants are restrictive and flawed?

HOA’s Can Be Hard to Deal With

While an HOA has no right to evict a tenant, it can make things overwhelmingly difficult for the property owner. Regulations such as

  • Rental Property Caps: restrictions on the number of rental properties in the community. 
  • Lease Length: restrictions on the amount of time a property can be rented. 
  • Owner Possession: the idea that an owner must reside in the home for an agreed-upon length of time before turning it into a rental property. 

There are plenty of reasons why a property owner may see flaws in these covenants because they violate fundamental rights. 

How to Navigate the Process: Keeping the Peace

As a landlord, educating yourself about the HOA rules and regulations is KEY! It is also essential to better understand the laws (both federal and state) that govern the HOA and your property. One flawed covenant could be the difference between a peaceful community and one with questionable, unenforceable regulations. 

Ultimately, an HOA covenant or restriction must serve some “legitimate” purpose for the community and be voted on to enact that intended purpose/goal. Keeping the peace means making sure that all covenants have a unified goal that benefits the community; a goal that is attainable and fair to all members of the neighborhood. 

Get Help

A property management company is a great support system when dealing with HOA regulations and restrictions. A qualified property management company can help to navigate the process of dealing with an HOA that does not have the power to act and enforce covenants that are not legally sound. 

Doing everything alone is a rookie mistake that property investors often make. Many think this adventure is a solo one, but that is not the case. Take the time to get the help you need and make the process less stressful.  

At Oak City Properties, we’ve streamlined the experience of purchasing and owning investment properties through a trusted and reliable mindset built on decades of measured success. Our real estate and investment professionals are ready to help you manage your most significant assets through a hands-on approach that focuses on consistently generating results. 

Want to learn more about our commitment to effective real estate investing and property management? Contact us or give us a call at (919) 232-9222. Feel free to also check out our website at oakcityproperties.com or check out our Facebook Page

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