The policies of any HOA are sometimes a touchy subject because, at any one time, homeowners are simultaneously responsible for and subject to the rules set out by their homeowner's association. There are a number of perfectly normal policies that are put into place like a stylistic agreement to keep the neighborhood looking nice and everyone's property values going in the right direction. However, problems sometimes arise when a particular policy favors the homeowners who moved in (and began voting) first and limits the actions of those who joined the neighborhood and HOA later on. One of these common but highly contested policies is the HOA Rental Cap.
Understanding Your HOA's Rental Cap Policy
Pros and Cons of a Rental Cap
Of course, there are some good reasons for a rental
Rental Cap Pros
- A higher percentage of residents who are homeowners and members of the HOA
- Higher home values with a lower rental ratio
- Lower chance of disrespectful renters
- Lower chance of poorly maintained rental homes with distant landlords
- Lower potential interest rates with lower rental ratios
Rental Cap Cons
- Only the first few owners can choose to rent out properties
- Fewer potential buyers because homes can't be investment properties
- Less power in the hands of the homeowners
- Excluded renters could have been great community members
- Renters often love the houses they lease and eventually buy.
Can You Change Your Neighborhood Rental Cap?
If you find yourself in an HOA that has already reached its rental cap but wants to rent out your property, the good news is that no HOA policies are written in stone. These are agreements between the owner-members themselves and going through the correct procedure can always enact change.
The most peaceful way to change your local rental cap policy would be to get involved in the HOA, build support for the change, and ask the board to amend the policy so that better policies can be adopted that please the current collection of neighborhoods homeowners. If your HOA and/or neighbors don't want to change, your association board can also potentially hire an HOA attorney to investigate the original amendment process that made the policy in the first place.
In most neighborhoods that have this policy, a rental