Passing HOA Fees to Renter
A home I am renting has a home owner association fee of 275 per year. It's used to cover maintenance of common areas...No pools or parks. I have included this as a yearly fee that the renter pays. I guess I could have added it into the rental rate, but I didn't.
Does anyone see any issues with this?
Most people I have dealt with would rather pay an extra 23$ a month then 275$ at one time, to me it is a cost of doing business and should be factored into the rent.
Typically the landlord covers that fee directly. So up the rent a little next time. IT's better for PR, in my opinion... But as long as tenant agrees, I'm sure its fine.
Thanks guys, appreciate your input.
Agreed with @Joe Gutmann and @Christine Kankowski. I have 2 condos, and I handle the HOA fees myself.
I agree. I price into rent. I want to be the one to pay HOA fees so that I know it gets done. You might find yourself in a mess if the tenants are responsible for it, but don't feel like paying it.
I agree with the others. Increase the rent and you personally pay the HOA dues. It's too easy for the tenant to forget or fight back when the time comes to pay.
In Florida if the dues don't get paid the HOA can go after your home, foreclose and take the rent to cover the dues until paid in full. Not a good situation. If the rent is a fair amount and you can get all of your fees covered, that's great, but not always the case
An issue I see with this is what happens if a tenant goes month to month and then leave the month before the fee arrives? Your next tenant will get smacked with it as soon as they move in, or possibly you will get it during a vacancy. The cleanest approach in my opinion would be to increase rent slightly and pay it yourself.
Originally posted by @Terry Mccasland:
A home I am renting has a home owner association fee of 275 per year. It's used to cover maintenance of common areas...No pools or parks. I have included this as a yearly fee that the renter pays. I guess I could have added it into the rental rate, but I didn't.
Does anyone see any issues with this?
You can recoup it from your tenant all day long, but make sure you pay them on time yourself. Don't delegate it to the tenant to pay it to the HOA. As a homeowner, ultimately you are on the hook for it.
I agree with all your input. My original posting did not make it clear that I was going to make the payment to the HOA, not the renter. So, the question I was seeking input on was whether it's inappropriate to ask a renter to pay me for the annual HOA fee, separate from the rent.
I have decided to not pass on the fee, as Kristine mentioned, it's a PR issue and is a potential point of conflict with renters....especially when they don't get any perceived value from it...
Originally posted by @Terry Mccasland:
I agree with all your input. My original posting did not make it clear that I was going to make the payment to the HOA, not the renter. So, the question I was seeking input on was whether it's inappropriate to ask a renter to pay me for the annual HOA fee, separate from the rent.
I have decided to not pass on the fee, as Kristine mentioned, it's a PR issue and is a potential point of conflict with renters....especially when they don't get any perceived value from it...
Agree with Kristine. At least in my immediate DMV area, the landlord pays it. You should do whatever is prevalent in your area.
I agree, increase the rent. From my experience, the renters are typically happier with such slight increases instead of paying a lump fee.