Ward, Hayden

Communicating Your Vacation Rental Property With HOAs

HOA's and vacation rental owners

In many instances, commercial activities like renting out accommodations — even for short periods — are forbidden by lease or condo board policies. In some cases, hosts will need to contact their landlord or homeowners’ association (HOA) before subletting or renting out any accommodations. Failure to do this can result in eviction or other forms of legal action. 

Even if you’re allowed to rent out your home or condo through Airbnb, doing so can cause tension with neighbors and the HOA. There’s always the potential that your guests may not be respectful to property in common areas, act inappropriately or noisily, or make other tenants feel uncomfortable.

Creating Harmony

In a condo or homeowners association (HOA) community, relationship building between the HOA board and members is important. Since homeowners have a high personal stake in their investments, it is important to communicate problems, issues and board decisions that impact them promptly.

Poor communication may lead to the misinterpretation and misunderstanding of information, which could cost your HOA money in the long term if a member decides to file a claim.

But effective communication is more than just publishing a quarterly newsletter or distributing copies of board meeting minutes. A proactive communication program — one which uses appropriate communication channels and promotes an environment where everyone is well-informed — is a useful way to create harmony in the HOA community.

How Do You Know If Your HOA Allows Vacation Rentals?

Each association’s rules will depend on its bylaws and covenants. While some HOAs may ban short-term rentals entirely, others may limit how often and when HOA property owners can rent out their home or condo. All HOAs have a Declaration of Covenants, Condition, and Restrictions (CC&Rs) to keep all things fair and well maintained across property owners. Many CC&Rs will explicitly state if rentals are allowed and what perimeters or restrictions are imposed.

Other Considerations

There are a few other considerations that may go into play when trying to rent out your property within an HOA community. While some HOAs are more lenient than others, you may come across a rule that says the minimum lease period is at least 30 days.

Depending on your HOA, they may charge a fee for renting out your property. This fee could be monthly, quarterly, or yearly to cover the increased costs when you decide to rent out your property. The industry normal is typically 5-20% of your monthly maintenance fee.

Don’t Be A Rule Breaker!

Not complying with HOA rules can cause major headaches on both ends and potentially result in a legal matter. To help reduce your chances of butting heads, strong communication is key. Try implementing policies about rentals or have your guests register with the HOA office upon their arrival. While not all HOAs will be excited about a short-term or long-term rental property, it’s always best to be open and honest.

While maintaining a smooth relationship with the HOA is important, it’s also crucial to communicate clearly with your guests about what the rules are. If guests do not comply, the HOA to remove unruly guests from the property. If guests are breaking the rules, quickly take action and let your HOA know that you are handling it. Typically, most issues are with parking, noise and security.

Insurance For All Types of Rental Properties

While HOAs are not always the easiest to communicate your vacation rental needs with, our team just gets it. Whether you are looking for short-term rental insurance, long-term rental insurance, dwelling or second home, we are here to help. Connect with a team member today at CBIZ Vacation Rental Insurance and request a free quote.

This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

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About Us

CBIZ Vacation Rental Insurance, a division of CBIZ Insurance Services,Inc., is the largest insurer of short-term vacation rental properties in the United States. As part of an $850 million New York Stock Exchange traded company (CBZ), we are the first broker to develop specific policy coverage to meet the needs for vacation rental properties and the amenities offered by these businesses. We have insured vacation rental properties since 2002.

The CBIZ Vacation Rental Insurance team knows insurance, specifically the risks and exposures related to short-term vacation rentals.We won't confuse you with technical "insurance speak" ~ our representatives are well versed in explaining your coverage in plain English. With hands-on, personal customer service, we guarantee swift communication and a 24/7 claims team that is ready to respond to your call any time of the day. As specialist in the industry, we leverage our knowledge and passion to ensure you and your business are adequately protected.