You've invested in a gorgeous property in a managed community here in Woodbridge, and you want to make the most of it. After all, receiving a steady stream of rental income is an excellent way to boost your finances.
That said, are rentals in an HOA community even allowed?
The short answer is yes; you often can put tenants in properties managed by a Homeowners Association. However, it depends on your HOA's rules.
Here's what you need to know.
The Rules on Rentals in an HOA Community
Perhaps you're investing in real estate to diversify your portfolio. If so, you may have purchased a vacation rental, a single-family home, or a multi-family home. If this property is part of an HOA community, you must follow their rules.
Sometimes, these rules might be strict, but failure to adhere to them can result in fines or liens.
Whether you can have rentals in an HOA community depends on the restrictions set by that association. It's a good idea to start researching the issue, going over bylaws, and brushing up on the HOA's governing documents.
The easiest way to find answers is to contact a board member. If your HOA has hired a community management company, then you can contact them for assistance.
We recommend joining your HOA as a board member or attending the meetings if you want to have a say in how your community operates.
HOA property rules vary widely. As such, there might be a ban on rentals or certain restrictions in place. Many developments have rules, such as imposing a rental cap.
Make Sure Renters Follow the Rules
Allowing renters in your property does come with some risk. You're relying on them to follow the same rules that you have to.
If a tenant breaks HOA rules, you can also get in trouble. That's why it's in your best interest to go over all governing documents and ask questions about specifics. For instance, does your association allow pets, such as support animals?
Make sure to read up on the restrictions for amenities as well. Some communities don't allow renters to use the pool, while others may allow tenants to use it as long as the owner gives up their rights during the individual's occupancy.
Research Local and State Laws
Even if you're allowed to have renters, you should always read state, federal, and local laws for landlords. It's a good idea to have a legal professional's assistance when crafting a lease agreement so you cover all your bases.
Remember that laws can change. You must keep up with the latest news about your HOA and your area regarding renter rules and rights. This is why it benefits you to join your HOA board or attend the meetings.
Follow Your HOA Rules
There are many benefits to having a property in a managed community. However, if you plan to become a landlord, you must follow federal, state, and city laws regarding rentals in an HOA community.
If your Homeowner's Association allows renters, make sure your tenants follow the same rules.
PMI Prince William has more than 20 years of experience managing communities in Woodbridge, Virginia. Learn more about how we can help you with our homeowner resources and make the most of your investment.
