Email Mike Email
Residential Real Estate
Apr 1, 2020

Things To Consider Before Renting In A Community Association

Sponsored Content provided by Mike Stonestreet - Co-Owner/President, CAMS (Community Association Management Services)

If you own a home in a homeowner's association or condominium owner's association and are thinking about renting it out, you probably know that there are several factors to consider before you ever take the first steps in looking for a tenant. Understanding your responsibilities and obligations will not only make the leasing experience more positive and successful for everyone involved but will also help preserve the value of your property.
 
What do the Governing Documents Say?

The first thing you should do if you're considering renting out your home is confirm that the governing documents of your association don't restrict you from renting. In some HOAs/COAs, there may be a minimum rental period. This could be anything from 30 or 90 days to a year. This will be something that can be found in the governing documents of the association and isn’t a rule that can be created by the board of directors.
 
Using a Reputable Rental Company

If your association does allow for rentals, another piece of advice is to use a reputable rental company that will properly vet and screen tenants. This is of course not for discrimination purposes, but rather to make sure that the needs of the potential tenants will coincide with the rules and regulations of the community. Say, for instance, you want to rent out a condominium that only has two parking spaces, but an interested family has four drivers - where are the other two vehicles going to be parked? That could turn out to be a problem if it isn't considered prior to a lease being signed.
 
The same thing goes for pets. Some associations don't allow tenants to have pets or they may restrict the size, breed or number of pets so you need to be aware of those types of rules. The time when a person is ready to start moving in is not the time to have that discussion and a professional property management company knows to be on the lookout for those sorts of things.
 
Tenant Responsibilities and the Terms of the Lease

Another thing to be aware of is to check if your association has a specific required lease that you must use – some do. You should always also be sure that tenants receive a full copy of the governing documents, especially the use restrictions and rules and regulations. Make sure all parties understand what amenities tenants are allowed to use. Typically, an owner has the right to transfer the use of amenities if they're renting out a property, but that could mean that the owners themselves aren't allowed to use the amenities during the time they're renting out their home. Another example is that most associations don't allow tenants to rent out clubhouses and things like that - these are all good questions to ask and having a clear understanding of what is and isn't allowed will create a better experience for everyone.
 
We recommend that when you're leasing a unit that you make it clear that tenants will ultimately be responsible for any fines that are incurred for any rule violations. Homeowners associations do not fine tenants, they fine owners, so owners are advised to protect themselves ahead of time by including some language in their lease that ensures they'll recoup any fees that may be charged due to tenant actions.
 
Overall the best thing you can do when considering renting out your home is ask lots of questions, make sure you have a clear understanding of the governing documents and do your best to be sure that you, the association, and the tenants are all on the same page.
 
Mike Stonestreet is a 30-year veteran of the professional HOA management industry who has achieved one of the highest education-based designations in the field, that of Professional Community Association Manager (PCAM). Community Association Management Services (CAMS) has been a leading association management company since its inception in 1991. CAMS is a trusted provider of management services, dedicated to holding themselves to a higher standard of service to the community associations they serve throughout North Carolina and South Carolina. To find out how CAMS can benefit your community or visit www.CAMSmgt.com.

Other Posts from Mike Stonestreet

Cams300pxx250pxblockadjune2018[1]
Ico insights

INSIGHTS

SPONSORS' CONTENT
Natalieenglish headshot

MODERNIZE OUR DOWNTOWN LIBRARY AND MUSEUM

Natalie English - Wilmington Chamber of Commerce
Web mcwhorter 0012

Building And Celebrating An Inclusive Entrepreneurial Culture

Heather McWhorter - UNCW Center for Innovation and Entrepreneurship
Jeremytomlinson enfuse headshot

The Ultimate Secret To Keeping Your Business Data Safe

Jeremy Tomlinson - Enfuse Technology Solutions

Trending News

Restaurants, Retailers Among 192 Businesses Receiving Pandemic Relief Grants

Staff Reports - Sep 22, 2021

Mayfaire Announces Opening Dates For New Stores

Cece Nunn - Sep 21, 2021

More Than 51 Acres Sell In Leland

Cece Nunn - Sep 21, 2021

New Restaurant Opening Saturday In Ogden

Justin Pope Williams - Sep 22, 2021

Custom Builder Moves Into New Office After Repurposing Former Church Building

Cece Nunn - Sep 23, 2021

In The Current Issue

Geospatial Startup Maps Growth

Providing a highly demanded service in a niche industry has allowed Wilmington-headquartered technology company Geo Owl to grow as an innova...


MADE Winners: Supporter Business Category

Big Sky Shop + Studio is the winner in the MADE Awards Supporter Business Category....


Free Trolley Refreshes Downtown Route

For visitors and locals alike, the free downtown trolley in Wilmington recently refreshed its route, offering access to more desired destina...

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100