In the modern real estate landscape, homeowner associations (HOAs) play a pivotal role in maintaining the quality and value of community properties. Landlords, in particular, find themselves at a crossroads when deciding whether to participate in these organizations.
Sometimes, joining an HOA is a requirement for renting out a property in a specific neighborhood. Other times, it can be a strategic move that can impact your rental business. Whether you’re a willing participant or a begrudging partaker, let’s explore why landlords might have to join an HOA and the benefits of being in one.
What Exactly Is an HOA, and What Do They Do?
A homeowner association (HOA) is a governing body within a condominium, townhouse, or planned community that establishes and enforces rules to maintain property values and a harmonious living environment. Typically, these organizations are responsible for the upkeep of common areas, such as pools, parks, and clubhouses, and overseeing the exterior appearance of homes and landscapes.
A key aspect of an HOA’s role is to collect monthly or annual fees from homeowners to fund these activities. Beyond physical upkeep, HOAs also play a critical role in resolving disputes among residents, setting community standards, and sometimes even organizing community events to foster neighborliness. For landlords, being part of an HOA means adhering to its regulations, which can influence property aesthetics, tenant eligibility, and the types of modifications that can be made to the property.
What Are the Benefits of Joining an HOA?
One primary advantage of joining an HOA is the preservation of property values within the community. HOAs maintain high standards for property appearance and upkeep, directly contributing to sustaining or even increasing property values over time, ensuring your investment remains lucrative in the long run.
Additionally, the amenities provided by HOAs, such as pools, fitness centers, and communal areas, can significantly increase the attractiveness of rental properties to potential tenants. These features not only enhance the living experience but can also allow landlords to command higher rent prices.
Beyond the tangible benefits, HOAs strive to create a sense of community and belonging among residents. This can result in longer tenancy periods, as renters are more likely to feel satisfied and settled in their homes.
Why Might a Landlord Have To Join an HOA?
Now that we have a better understanding of an HOA and its benefits, why might a landlord have to join one? This requirement typically stems from the covenants, conditions, and restrictions (CC&Rs) linked to the property at the time of purchase. The CC&Rs are legal documents that outline the rules and guidelines for the property, including the necessity for all property owners within the community to join the HOA.
Upon acquiring a property in these communities, property owners automatically become part of the HOA and are obligated to contribute to its fees and comply with its regulations. This arrangement ensures that every member, including landlords, actively participates in maintaining the community’s standards and values.
Understandably, being an active participant on the board and upholding these values can add extra burdens on an already heavy load. If you’re looking to ease some of that weight, let Excalibur Homes’ comprehensive suite of Atlanta property services help take some of the responsibility of being a landlord off your shoulders.
