Around 75 million Americans live in HOA communities, which is 30% of the U.S. current housing stock. This shows how popular these types of rentals are.
If its popularity isn't enough to sway you, know landlords benefit from investing in HOA rentals. But those new to real estate probably don't know how to tap into this market.
Are you on the fence about rentals in the HOA community? Luckily, we've got the answers you're searching for. Here's why you should invest in these types of rentals.
Attract Quality Tenants
A major perk of HOA rentals is that they attract quality tenants.
Most single-family properties don't have the range of amenities that HOA units do, which can play to your advantage. Depending on the association, most properties include a private pool or sauna, a community clubhouse, and a tennis court. As a landlord, the more amenities the association has, the more you can charge for rent.
Fewer Maintenance Responsibilities
As a real estate investor, you want a stress-free experience. Without an HOA, landlords must hire a property management company to handle maintenance requests to keep tenants happy. But when you invest in an HOA property, the association will handle trash services and landscaping, so landlords have peace of mind.
In a similar vein, HOA rules state that all communal areas should be well-maintained too. Not only will tenants find this appealing, but the neighborhood always looks its best with no extra effort from the landlord.
Help With Neighbor Dispute Mediation
Another reason why HOA rentals are attractive is how disputes are handled. Whenever an issue arises, it will be taken to the board which will decide how to deal with it. This is a lifesaver for landlords who don't have time to manage neighbor disputes, as they're busy.
What to Know About Landlord Responsibilities in HOA Rentals
You know the benefits, but not what is expected from you.
As a landlord, you must ensure that tenants follow the HOA rules as you'll be liable. For instance, if the lease agreement states the occupant pays the rent and they don't, you will receive a financial penalty.
Landlords must also take into consideration the HOA fees. This is a monthly payment and is $200 on average, so include this in your budget. Note, that tenants aren't responsible for paying the fee as they're not homeowners, so you'll still need to make the payment.
Although the HOA handles maintenance, landlords must still pull their weight. For instance, make sure the unit's curb appeal complies with the HOA's regulations to avoid any issues. It's a good idea to hand over the list of rules to tenants, so they don't accidentally break any.
Invest in Rentals in the HOA Community Today
Hopefully, you're now convinced to buy rentals in the HOA community and earn a decent profit.
At PMI SouthBay, we have 20 years of experience working with landlords who own HOA rentals in Santa Clara, CA. With the help of our experts, we can help landlords handle daily property management tasks. If interested, contact us today to chat with a team member.
