#Hoa covenants versus guidelines free#

Rental CapsĪ rental cap places a limit on the percentage of properties within the community that may be rented at any given time. Two of the most common approaches are caps and lease restrictions. There are multiple ways for an HOA to limit the ability of homeowners to rent out their properties. The question is, what options do HOAs have for these rental restrictions? How Can an HOA Limit Rentals? These are just a few of the reasons why a homeowners association may determine that restricting rentals is an appropriate course of action. This can lead to an increase in compliance violations. Renters may not follow the rules of the community, or care about upkeep and maintenance standards as much as homeowners.Rental limitations can also increase stability in the community, as there will be a lower turnover of residents.(If a high percentage of homes are being used as rental properties, real estate lenders will be much more hesitant to get involved.) Restrictions on rentals can also increase the likelihood that lenders will provide loans for new properties in the community.Limits on property rentals can help keep the association’s liability insurance rates in check.This is just one of several reasons to consider a ban on rentals, or at least some guidelines for how and when property owners can rent. Simply put, HOAs want to sustain community standards, and that can be hard to do when renters are constantly parading in and out. We’ve already noted the main one, and that’s keeping property values high. There are a number of reasons why your Board might impose and enforce a rental restriction policy. We are happy to advise, based on our decades of experience providing HOA management in Huntersville NC, Charlotte NC, Myrtle Beach SC, and HOA Management in Fort Mill SC.

#Hoa covenants versus guidelines free#

If you live in the Carolinas, feel free to contact Kuester Management Group. For HOAs looking to maintain safe communities, and to safeguard property values, imposing restrictions on rentals may be a necessity.īut what should your HOA Board know about rental restriction policies? First and foremost, you’ll want to consult with your HOA attorney or with a community management company for guidance. This issue has become increasingly salient over the past decade, as platforms like Airbnb create new incentives for homeowners to turn their residences into rental properties. One of the most notable restrictions that a homeowners association can impose is a restriction on short-term rentals. But of course, there are a few common-sense legal limitations, as well as some restrictions that come with membership in a homeowners association. Generally speaking, when you own a home, it means you can do whatever you want with it.

Frequently Asked Questions About Rental of Units in an HOA.

How Can the HOA Enforce Rental Limitations?.Does the HOA Have to Disclose its Rental Restrictions?.Can the HOA Screen Prospective Tenants?.