Are you wondering how to go about the issue of rentals in your HOA community?
Although HOAs in Cypress, TX, have the power to prohibit homeowners from renting out their properties, most communities allow them. However, if the policy is not properly designed and implemented, rentals in an HOA community can become a major problem with far-reaching consequences, such as declining property values.
If you're a board member tasked with developing strategies for rental property management in your association, you've come to the right place.
Look at Your CC&Rs and Bylaws
Every HOA community has covenants, conditions, and restrictions that define what homeowners can and cannot do with their property, as well as bylaws that govern the operations of the association.
In these governing documents, you'll find clauses that are relevant to the matter of rentals. That's where you need to start. If there's no such provision, or the current provisions are outdated, the next step is to make the necessary amendments.
In best practice, an HOA needs to restrict the number of homes in the community that can be rented out at any given time. This helps to limit or regulate the population of tenants in the community.
Develop a Rental Process
A property owner who wishes to become a landlord has every right to rent out their home however they wish, but in an HOA, it's prudent to develop uniform rental processes that everyone will follow.
The process should describe how to get approval for a home to be used as a rental, as well as how to screen tenants.
Leaving tenant screening to individual landlords can be a recipe for disaster since there's no guarantee they'll follow the checklist. The HOA can hire a tenant screening service and task it with vetting all rental applicants.
It's also crucial to draw up a uniform rental agreement that outlines HOA rental rules and regulations. This way, you'll rest assured that all incoming tenants are aware of what the community expects of them.
Sensitize Landlords and Tenants on Their Obligations
The relationship between a landlord and tenant goes beyond rent payment and its collection. As per Texas law, both parties have rights and responsibilities.
As a board or management member, don't assume that the homeowners and tenants who will rent those properties know their obligations. For harmonious living, take steps to sensitize everyone on what their roles and responsibilities are. For example, landlords need to know that it's their job to ensure their properties are maintained and repaired accordingly to meet the state's health and safety requirements.
Rentals in an HOA Community Shouldn't Give You Headaches
Managing rentals in an HOA community is a major responsibility for boards. While banning rentals might seem like an easy solution, the smarter move is to develop HOA community guidelines on their management.
While the board's job is to develop effective rental strategies, having a partner to implement them is key. That's where PMI Values Your Casa, a full-service association management serving HOAs in Cypress, TX, comes in.
With a skilled team, we offer tailored HOA/Association management services, addressing each community's unique challenges. Our approach adds value to the community and its residents, focusing on customized, innovative solutions for exceptional management.
Talk to us today about your HOA's needs.