What are the advantages or disadvantages to investing in an HOA property?
Advantages – You can rest assured that certain standards will be upheld in regards to the outward appearance of the neighborhood. No one is going to get crazy and paint their house purple or rebuild transmissions in the driveway. It also forces your tenant to pay attention to the yard. This helps maintain property values.
Disadvantages – There is usually a monthly fee associated with an HOA and there is a chance you will get a love letter from them if your tenant is not playing well with others.
Are all HOAs the same?
No. Each HOA is managed differently. Some are super aggressive or impossible to satisfy and others just lay there. Generally, you can get the feel of an HOA by looking at the surrounding properties. If there are garbage cans out after garbage day and if there are few cars parked on the street, you can pretty much assume they are reasonable. Reasonable HOAs are the best for rental properties.
What is included in the monthly cost of an HOA?
Common Grounds & Standards. They take care of the exterior walls, common plants, gates and/or pools. Some HOAs take care of the front yards of each single family house. The most important component is enforcing rules of the community. Some person is driving around making sure standards are met. There is also a phone number neighbors can call to squeal on someone.
Don’t ignore the violation!!!
Violations just don’t go away if you toss it in the garbage. You will just get more late fees. If you ignore it long enough, the HOA can put liens on your property and bad things happen soon after.
If you get the violation to us right away, we may be able to cure the problem before you get a fine. Most HOAs will give you a warning before they spank you.
We send the violation to the tenant and give them a few days to cure it. If they don’t cure the problem, we send someone out there to cure the problem and then bill the tenant. If the tenant doesn’t reimburse us, we evict them.
It is very very important that you pay the fine if you get one. We will then force the tenant to reimburse you.
Can I contest the violation?
Yes. However, it isn’t easy. Standard procedure is to appear before the board and explain why the violation is not applicable. If you want us to contest the violation for you, we charge $100 to deal with it. It’s rare that a violation is overturned so you are better off just paying the violation unless it’s over $500.