Are you at a crossroads on whether to allow or restrict rentals in your HOA community?
It's easy to understand why you're in that situation. Although Jessup HOA property owners have the right, or at least deserve, to use their homes as rentals whenever they wish, a strong case can be made against having renters in a community. Renters have no vested interest in the well-being of the community and are thus more likely to abuse HOA rules without fear of eviction.
However, all things considered, it's in the best interest of a community association to allow rentals to a certain extent. Read on to learn how your community stands to benefit.
Higher Occupancy Rate
HOAs are becoming more popular, but that doesn't mean their units are flying off the market. Depending on various conditions, an HOA can struggle to sell out all its properties.
Imagine a scenario where 50% of the homes in your HOA are struggling to find buyers. Are you going to let them sit until buyers come? You can do that, but there will be consequences. For example, you might not collect enough funds (HOA fees) to finance the community's needs.
If you allow rentals, the community will become more appealing to a wider audience of renters who want to enjoy the benefits of living in an HOA without buying a home. As a result, the community will likely see higher occupancy rates, leading to higher HOA fee collection.
Property Values Could Get a Boost
One of the biggest perks of buying an HOA property is the greater appreciation potential they have compared to non-HOA homes. A Cato Institute study established that HOA homes are typically worth 5-6% more than similar homes outside association communities.
Several factors contribute to this, and allowing rentals can be one of them.
Homeowners certainly want the flexibility to use their properties as rentals if they want to move out of the community. Some investors may also want to buy HOA properties for exclusive rental use.
A favorable rental policy will encourage such buyers to buy homes in your community. This can increase their demand, potentially leading to rising values.
Diverse and Vibrant Community
At the end of the day, an HOA community isn't an association of buildings. It's an association of people with a common fate. Diversity is a cornerstone of community growth and vibrancy. The fusion of people from different backgrounds is a spectacle to behold.
Allowing rentals in your community is an effective way to promote the growth of a diverse community. It will not only attract locals who want to own a piece of the community but also renters from far and wide who want what Jessup has to offer, along with the HOA living benefits of your community.
Reap the Benefits of Having Rentals in Your HOA Community
Allowing rentals in your HOA community isn't an easy decision, but as the article has demonstrated, it's the right thing to do. Your HOA does, however, need a robust HOA rental policy.
At PMI Village Alliance, our association management experts can help your community develop and enforce a rental policy that works. Our locally owned office operates independently as part of a franchise that has refined association management for over 20 years.
Schedule a consultation to learn more about our services.
