I am going to rent out my house that has HOA fee of $30/month. Do you think is it better if I add $30/month to the rent and keep paying for the HOA fees myself, or I ask tenant to pays the HOA fees?
I understand that some HOA can take legal action for unpaid HOA fees. So, to keep things simple, I would like to just add the fees to monthly rent.
What do you think about it? Any pro and cons?
You pay the HOA fees as a part of your cost of ownership. If the HOA offers amenities that the tenant would enjoy then use it as marketing - pool, trash, etc. You are renting the property at what the market will allow (not the market rent plus HOA fees) and pay the HOA payment out of the rent you collect.
I wouldn't put that responsibility into the hands of the tenant, the late fees and challenges with no payment is too much risk.
Owners pay HOA fees, not tenants. Tenants don't vote or participate in HOA decisions, owners do. Set your rental price so that it accommodates the HOA fee and any other fees you pay.
There right. There's a reason it's called home owner association and not renters association. Charge it to the game and move on. ;)
I agreed with Owner pays HOA, used the amenities offer by the HOA as a feature for your rental. Work the HOA fees into your asking rent.
And make sure the HOA is sending any notices and/or violations to you, not the property. You need to be in the loop if they are violating the covenents.
I would say this goes with anything that could cause backlash on you. If the HOA doesn't get paid it could cause you problems. We have a property that the county charges $14/month for trash pickup. This is a required expense from the county. If this fee doesn't get paid, bad things can happen (like a lien). So I don't want to put that responsibility on my tenant. I just include that in the rent charge and I pay that fee to ensure it gets paid.
The best thing to do is ask yourself this. If a particular bill associated with the property is not paid, does it hurt you in any way? if no, then have the renter be responsible for it.
If a utility bill isn't paid, the tenant doesn't get that utility anymore. That doesn't hurt you any, so that's why utilities are paid by the tenant or instance.
Thank you all for the feedback. Now I understand what fees should go with rent and what's fees go to tenants.
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