HOA Rental Restrictions
How would an investor find out if a prospective property has any rental restrictions? Would you simply call the HOA and ask?
Also, what happens after an investor purchases a property with rental restrictions? Would the investor pretty much be force to either sell the property or just sit on it?
The HOA documents might be recorded, so you might check the county records to see if you can get a copy. What's recorded is often the original docs, and things may have changed / evolved from what is recorded. you could put into your agreement to purchase that it will be contingent on approval of the association documents by the purchaser; a set of documents normally has to be given to a purchaser so that the rules are known.
Bruce,
To answer your question, the way I have been doing it is to call the HOA directly and ask them the question. You can flag down a neighbor and ask them for the HOA contact person info.
Bruce,
I have quite a few experiences with this so I'll throw in my 2 cents.
1) The listing agent typically knows this. (S)he ordered the HOA docs from the get-go so s/he should know.
2) How would the HOA know if the unit is OO or NOO? Based on my experience, if the mailing address for the monthly HOA due is the to unit itself, it is considered OO. :)
3) When you obtain a loan, the HOA has to fill out the OO/NOO ratio per the lender's request, you can find out through ths way too.
4) Call the HOA, but they would likely ask you to have the listing agent or the seller contact them about this.
5) If it's a small complex that's being managed by individuals that live there, the OO/NOO ratio can be manipulated. Example: If the kids live there, but the parents are the owner, would you consider the unit OO or NOO? :)
6) If the complex is maxed out on OO/NOO ratio and you decide to rent it out, HOA typically doesn't care as long as the residents don't complain.i
It's what I have seen in the real world.
Thanks Guys!
I will call the HOA, and I don't know if it matter, but I'm buying with Cash, so the lender shouldn't request any form from me.
My mailing address would most likely be a PO Box.