Consider rules before buying or renting HOA-governed properties

Many people looking for rental properties are turning to condos and townhomes as a less expensive alternative to renting a single-family home. Many of these communities have some nice amenities to offer such as pools, clubhouses, gyms and community parks and green spaces. These amenities are included in the HOA dues that are usually paid by the owner of the property. It’s also nice to not have to deal with yards and the outside maintenance. Many HOAs include the front landscaping care in the monthly dues. With so many of us so busy these days, not having that extra work may be appealing.

If you’ve ever lived on a street where one or more of the neighbors has a barking dog that won’t quiet down, or you are at odds with a neighbor that leaves a mess in front of his or her house that they just painted shocking pink or bright green, you may be tempted to move to an HOA community.

Condos and townhomes are managed by HOA community management companies, and while there are perks to having access to amenities, there are responsibilities and restrictions as well.

If you are used to living in a single-family home, other than normal city and county laws, you probably don’t feel restricted in the way you run your lives. In HOA communities, there are almost always rules and regulations that are enforced by the HOA.

When thinking about moving into a property that is governed by an HOA, be aware that there are things that you may not have considered and should find out when touring places. There are usually a limited amount of parking spaces per unit. Ask if there are guest parking spaces and if there is a fee for that. Ask if there are certain days to put the trash cans out and in. If you don’t know these answers, you may find out with a violation that you would be responsible for paying. It is important to receive a copy of the rules and regulations upon move in. Keep them handy, as you will want to ensure you are in compliance. Properties governed by an HOA have more “teeth” when dealing with issues that, if in a single-family home, may be difficult to bring to a resolution. When you rent a property, you are agreeing to abide by the rules and regulations of that association.

As a property manager, I have had some very stringent HOAs with which to deal. On involved a tenant getting a violation for having a tire mark on his driveway. Another was a violation for having some dirt on the windowsill. It may be a good idea to ask folks living in the unit you plan to purchase or rent about the strictness of the HOA. Think about what is acceptable to you before you sign on the dotted line.

It is nice to know however the rules and regulations go, that my experience with HOAs is that they are willing to listen to you if you have a good reason for a violation. Good communication has been the key with most HOA properties that I manage. After all, they are run by people, and in my experience, just want to know that you are trying to remedy the situation.

As an owner, when you purchase a home in an HOA, there are restrictions on what color you are allowed to paint the exterior of your home. They may tell you what flowers and shrubs you can and cannot plant. On the other hand, you won’t have to look at your neighbors’ pink and green house.

If you are planning to purchase a property for an investment or if you think your lifestyle may change in the next few years, make sure you are able to rent out the property. Some HOAs have restrictions on the number of owner v. renter-occupied units. If rentals are allowed, most likely there will be paperwork to fill out for a tenant that needs to be filed with the HOA manager. It’s best to do your homework before you buy.

If you are planning on a purchase or considering a condo, townhome or house governed by an HOA, it is important to ask questions about the expectations of that community. Many people find it wonderful to know things are taken care of and there is someone to go to if there is a problem. Others might find it too restrictive for their way of life. In any event, it is a good option for more affordable and lower-maintenance housing.

Stephanie Wood is a broker and property management specialist with Preferred Property Management and Real Estate in Ventura. Do you have a question regarding rental property as a landlord or tenant? Send questions to stephanie@gowithpreferred.com.