Homeowners’ associations are responsible for maintaining common areas and ensuring the well-being of residents in their community. As a result, it’s not uncommon for HOAs to have a say in who landlords can rent to, whether they plan to stay for a couple of days or an entire year. After all, the impact of a bad tenant isn’t limited to a messy kitchen in your rental. It could also mean damage to common areas and legal issues that inevitably put a strain on neighborhood relationships. Read this article as we cover how HOAs can spot high-risk renters and touch on how to balance their responsibilities with renters’ rights.
How Can HOAs Spot High-Risk Renters?
Leveraging Tenant Screening
One of the best ways to spot a high-risk renter is through a thorough tenant screening. That means the HOA has to rely on landlords performing their due diligence to get a better picture of the tenant in question. As a result, some homeowners associations may go the extra mile of specifying what checks landlords have to use when evaluating a tenant. That list often includes standard checks like employment status, credit score, criminal background, and rental history. The HOA would then expect the landlord to share a screening report with them to make their own evaluation.
Enforcing Clear Rental Rules
Another way HOAs vet tenants before even getting to the screening process is by setting clear rental rules. These are often imposed guidelines on homeowners dictating the community’s terms for a lease. For example, some neighborhoods have rules on how many rentals can exist at a time, minimum lease period, and maximum occupancy rates. Such rental rules are often set in place to prevent problematic short-term tenants and protect the home value and interest of other investors. Despite having the legal right to set such policies, just like landlords, the government doesn’t allow HOAs to implement discriminatory rules. Philadelphia HOA managers understand the importance of complying with Fair Housing Laws.
Monitoring Compliance with Community Standards
Even after a tenant moves into their rental, HOAs still have some sway on whether they stay, by monitoring their compliance with community standards. As a result, renters with repeat violations such as ignoring parking rules, playing loud music, or misusing common areas may face a fine or eviction.
Balancing HOA’s Responsibility to the Community and Renter’s Rights
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Use a Transparent Lease Policy
Let renters know from the get-go what to expect when moving into your rental. You may not mind tenants that play loud music, but if your HOA has a policy against it, you have to be forthcoming with that information early enough so tenants can decide if your rental suits their lifestyle. After all, the last thing you want is to sign a lease with renters who are incompatible with the community rules. It’ll also go a long way in minimizing neighborhood disputes and violations if renters are well-informed. HOA tenant screening is also similar to the usual steps property managers take to verify applicant qualifications, so it shouldn’t be a significant add-on to your usual process.
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Foster Open Communication
When HOAs have a problem with a tenant, they’re more likely to reach out to the property owner first as an appropriate intermediary. As a result, it would be best to keep your channels for communication open so you’re easy to reach when there’s a problem. Also, relying on corrections to your tenants, you also have to act as a representative for their interests in homeowners association meetings. Sometimes, tenants may violate community rules out of necessity rather than to spite the HOA or flaunt the rules. For instance, if you have a tenant with mobility issues but your community has strict parking rules that unintentionally make life more difficult for them, it’s your job to convey their discomfort to the HOA and reach a compromise.
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Respect Tenant Privacy
Be mindful of your tenants’ privacy when enforcing rules. HOA policies should extend to behaviors that affect the community, such as noise complaints or property damage. It does not include intimate details about what your renter does in their home, and it would be wise not to overstep that boundary. If you remember that while communicating with your HOA and tenants, you’ll save yourself from a lot of legal trouble.
Conclusion
Spotting high-risk renters allows HOAs to avoid settling neighborly disputes, incurring damage to common areas, or dealing with legal issues. As a result, it’s essential for them to communicate their policies clearly with the property owner, so they can consider these guidelines during the tenant screening process. Even after signing the lease, HOAs still have the right to monitor tenants and ensure they comply with community rules. However, it’s also important for landlords to ensure their tenants’ privacy is respected and to act as their representative when meeting with the HOA.