HOAs limiting number of rental properties
Madison County (AL) investors,
Just wanted to alert you to a recent development. We received our annual HOA dues statement for one of our SFH rentals. With the statement, there was a ballot to submit for HOA by-law revisions. The revisions including eliminating STRs (which aren't permitted by the city ordinance anyway without very specific qualifications/zoning), limiting the total number of rentals in the subdivision to a percentage, etc. They noted that all existing rentals were "grandfathered" in from any restrictions, likely to avoid a possible legal battle from the existing LTR owners.
As such, if you are buying an LTR in a subdivision with an HOA, make sure you check the HOA legal by-laws closely first before closing - this may become more wide spread in the future here.
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#5 All Forums Contributor
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It's beyond me why any investor would spend their money buying anything in an HOA controlled community.....