Tenants or Owner pay HOA?

Question

Hello, sorry if this has been asked before. I tried to search and couldn't find what I was looking for. For you investors that have rentals in an HOA. Do you generally pay for the HOA fees or do you have the tenants pay for it? The property i'm looking at has an HOA fee. The fee really eats into the cash flow. I've factored it in the numbers and they work(barely) but would be a lot better if the tenant pays. What do you think?

Theresa Harris · Answer

Owner definitely pays.  Anything with HOA or condo fees will cut into cash flow.  condos are less expensive, but with the condo fees, you are usually better off buying a house (without an HOA).  If the HOA includes any perks (eg access to a pool), you can use that as a selling feature to tenants.

Brandon Rizzo · Answer

An HOA should always be paid by the owner, they own the property and are legally the responsible party. If they don't pay the dues the HOA can lien the property or enforce measures on it.

An investor should always factor HOA as part of their expenses to a property.

Fees and violation fines incurred from tenant responsibilities are a different matter. Depending on the lease you usually can enforce a tenant to pay the fine back to you for something like not maintaining the lawn.

Gustavo Delgado · Answer

Owner pays, just add it to the rent along with projected taxes and maintenance

Ryan Dunn · Answer

In AZ the HOA can put a lean on the property. So as the owner i will make sure that is paid.

Russ Desatoff · Answer

Thank you all. I appreciate the advice.

Russ Desatoff · Answer

Thank you all. I appreciate the advice.

Russ Desatoff · Answer

Ok, thank you. I appreciate your help.

Tenants or Owner pay HOA?

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