Watch out for HOAs for your rent houses

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There have been a few discussions on this topic but I thought I'd post it again for visibility. Watch out buying a rent house where an HOA is involved. I have lived in my single family home since 2000. I am an owner occupant but plan on adding this house to my rental portfolio eventually. I do have rentals outside of this community. HOA came up with a new set of rules that regulate rentals. They did not seek owners comments etc. They made rules due to some issues with some landlords/tenants. They have many landlords in an uproar. There are a few of us owner occupants that are upset to as we have planned on renting our houses at some point. there current plans involve the owners asking for permission every 3 years to be a rental. there is no grandfathering. Obviously that makes it hard to do business.

When you buy via MLS, disclosing the HOA and its bylaws/rules are often part of normal documentation disclosure.... but buying via a wholesaler maybe a little different so make sure you know or ask.

You might be able to get them to amend the terms to allow renting with the support of neighbors or you could place the property in a trust or LLC and assign a nominal beneficial interest to the tenant so that they are technically a small partial owner.

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