Factors to Consider When Allowing Renting in a Community
As a Tampa homeowners association management company, we place a high priority on preserving and increasing the value of the communities we manage. Renting is an area where the value of properties in the community can be challenged. It is crucial that HOA management considers the following factors when addressing rentals in the community.
ARE YOU COMMUNICATING WITH OWNERS?
Many residents may not understand the rules and regulations that govern renting, but it is the HOA’s responsibility to educate owners and tenants. Community residents need to know that there are restrictions on the number of property rentals allowed in the community. They also need to know that the HOA has the right to approve or deny rentals based on the leasing agreement.
HOW WILL RENTING AFFECT OTHER RESIDENTS?
When you allow rentals, this can affect the quality of life for other residents. It is often cited that people who rent may fail to preserve the property in the same way an owner would. This is not to say that every renter is this way, but this should be a consideration. A way to curb this type of situation is to restrict the amount of rentals allowed in the community and back it up in your governing documents.
HOW WILL IT AFFECT THE HOA’S ABILITY TO SECURE LENDING?
Some lenders will choose to not lend to you or apply more stringent requirements on your HOA based on the number of rentals in the community. Some lenders will want your rental occupancy to be mostly owner-occupied before lending to you to reduce liability for them.
ARE YOUR RESTRICTIONS CLEAR?
The defining and enforcement of rules and regulations is the responsibility of a Tampa HOA property management company. The association must promptly notify residents when any changes are made to the documents that govern community covenants and restrictions regarding rentals to avoid nasty disputes and violations. Owners have the responsibility to do their due diligence even when they are renting out their property. For example, residents should know that HOA can place restrictions on tenants when an owner fails to pay HOA assessments.
There has to be some give and take in the HOA and resident relationship. Keeping the above factors in mind will help to make the rental process easier for your community.
For information, please call us at (813) 968-5665, or submit our proposal request form.