Home Selling in Buford>Question Details

Richard, Other/Just Looking in Buford, GA

HOA covenants

Asked by Richard, Buford, GA Sat Oct 25, 2008

I have a townhome for sale for a year that I cant sell. I will be thinking about renting it out, but my hoa will only allow 5% of the units to be rented.
I plan to rent it anyway. What is the worst case senario, if the HOA enforces that rule?

Help the community by answering this question:

Answers

6
Richard,

Given the current position of the real estate market many HOA's are making acceptions to their rules on renting.

In my opinion the community is better off allowing rental of units than having multiple foreclosures. The foreclosures bring the value down more than the rentals do.
1 vote Thank Flag Link Mon Oct 27, 2008
Richard-
If it were me I would try and advertise it for sale, lease purchase, owner finance and for rent.
That way you are not leaving out any occupant that my be in the market, If there are foreclosures in the community it will be hard to sale, but maybe a lease purchase or owner finance on a contract for deed.
Getting some downspayment money and hopefully monthly payments to cover your PITI and association fee.
They can lien the property and possible other things is you allow a renter, if you cannot sale.
I would try owner finanace that would not violate the association, 2nd best would be lease with a sperate purchase contact so you do have someone that does have a contact to buy.
Good Luck.
0 votes Thank Flag Link Sun Oct 26, 2008
Richard,

I say rent it, just don't advertise it in the neighborhood. I wouldn't worry about HOA doing anything. THEY CAN, but "off the record" I don't think they want you causing a stir over this item.

Some loans won't get approved if there are too many renters in the complex, and most of the loans refer to the HOA as part of that package. So there is a legitimate reason why an HOA would not want you to rent too many units out.

At the end of the day, THIS YEAR, it's better to have a renter next door than a foreclosure. Even if you're not close to foreclosure it's a good statement.

OF course, you could call you HOA and tell them, "Look I have a renter and I can rent it out or it can go to the courthouse to be advertised as a foreclosure and sold for up to 50% less than the surrounding units, thus damaging everyone's investment and ultimately causing the very thing the HOA is trying to protect."

Good Luck!
0 votes Thank Flag Link Sun Oct 26, 2008
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
Contact
Richard,

We are seeing a lot more of this lately, neighborhoods are getting stricter about the rental percentage and HOA are enforcing those rules. If you were staying there you would be happy with this rule since renters can bring down our values. We have a few in this area that have actually changed the HOA exceptions to NO rentals even lease purchases.

They can most definately fine you and yes can eventually put a lien on the townhome. I know you are frustrated about the sale of your home and we have talked about this in the past. I would either try to hang in there for a little while longer or sit down and seriously take a look at the list price of your town home. Again, you need to make your townhome more attractive than any other deal in there so they buy yours first. What are all the other agents offering, is there maybe a agent bonus you could throw in there. Some homework needs to be done to see what is being offered on the other townhomes for sale.

As always, a pleasure talking with you.
0 votes Thank Flag Link Sun Oct 26, 2008
they are not allowing anymore rentals. The problem is, I cannot sell the place. 1 year on the market and 4 showings . there are alot of forclosures in the neighborhood and alot of units for sale.
0 votes Thank Flag Link Sat Oct 25, 2008
They can fine you. Nosey neighbors will see someone new moving in or out and worst case if the tenant makes waves or does something wrong they can start hitting you with fines, if you dont pay the lein your house and collect when you do sell or refiance. it is bst to find what percentage they are at so you know where you stand, good luck
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Oct 25, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer