When purchasing a rental property within a community or homeowner association, your responsibilities are no longer limited to just the home itself. As a community member, you’ll be expected to abide by the rules and regulations of the association and pay either a monthly, quarterly, or annual fee. Benefits of having a property within an HOA include having access to recreational amenities, community events, and external maintenance services.
Homeowner Associations are especially common in Florida, and the Central Orlando area is no exception. At Belmont Management Group, we are a fully licensed brokerage and community management company well versed in the full particulars of community associations. A well-informed investor will fully understand not only the advantages, but also the potential ramifications of purchasing a home within a community association.
Understand Your Association Rules and Regulations
All HOAs have their own unique set of rules and regulations. Before purchasing a rental home, the most important rules to look out for are those concerning rental qualifications. Some community associations will have rental restrictions, meaning that only a select number of units can be rented out per year. We advise investors against buying such a property, as you may find yourself subject to the rule, and thus unable to procure tenants or generate any rental income.
Prepare for Additional Documentation
Many community associations will require new tenants to fill out an application, read over documents, and agree to background checks. Before purchasing a property, look into the HOA approval process and ensure that their tenant qualifications are in accordance with your own. Also keep in mind that HOA screening requirements may delay the move-in process for your tenants, so it’s important to have all information on hand as soon as your rental property becomes vacant.
Tenant Actions Reflect on You
The tenant’s you choose to approve will directly reflect you as an owner. If your tenants cause any damage to the community or violate any regulations, your year-end return will be adversely affected. Our goal is to make sure all of our tenants are fully informed of the regulations in each specific community. By keeping your tenant informed, you’ll avoid future issues, and you’ll maintain your own good standing with the HOA or condo association.
If you have any questions about community associations, we encourage you contact us at Belmont Management Group in Winter Park, FL.