Should the HOA charge a $1,500 security deposit to homeowners who rent thier homes? Is this number reasonable?
I live in a small development (35 homes valued at $1million and over). We have a lot of investors who are renting thier homes and a few have gone into foreclosure. Many are not paying the HOA fees and and a few have renters who are destroying the common areas. The HOA is proposing to ammend the docs to require a $1500 security deposit to cover and damages and abilty to deduct and unpaid HOA fees from the deposit. Is this reasonable and fair?
Active,
On the surface, the amount seems high but when home values are factored into the equasion, it does make sense.
If your a member go to the meeting and voice your opinion. I'd personally make it much higher for $1mil homes.
As a former townhouse owner and member of the Board of Directors of the Homeowners' Association,
I'd like to say that the owners are regulating their own properties, and if the need for a $1,500 deposit is there, then the board is folowing the law. If tenants can afford to pay market rent in a $1Million+ home, then a $1,500 deposit is certainly reasonable. The burden of repairs, if any, then are offset by those who cause the damage.
I do not have a basis to go by, but if renters in the area are detroying the common areas than I guess it is the HOA's right to ask for a deposit if a homeowners chooses to rent there homes. The other choice could be to raise the dues for everyone to cover loss and damages. In other areas that have HOA it is common for the HOA to even limit the number of rentals that are allowed.
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Fair Housing and Equal Opportunity