Many investors and vacation homeowners purchase homes with the intention of leasing them either full-time or seasonally. But what if you were told that you were prohibited from using the property as a rental? It happens more often than you'd think.
Typically, Arizona homes built after'90 are located within a Homeowners Association with restrictions known as Covenants, Conditions and Restrictions ("CC...R's). As a homeowner within the Association, you are bound by the restrictions imposed within these documents. Simply put, these documents regulate a homeowner's use of the property.
These CC...R's are provided to you prior to purchasing the home and should be read carefully. Usually anything that can be seen from outside can be controlled by the HOA. A bench in the front entry or even window coverings is two good examples. The HOA rules can regulate what plants and trees are allowed in your yard, the paint color of your home and even if you are allowed to lease your home. Some buyers request specifically from their real estate agent, to see only homes in non-HOA communities but these types of developments are far and few between.
During the real estate boom, many builders and HOA's began improvising and changing their rules to include if your home could be used as a rental. Or the rules stated how long you had to occupy the residence before renting to someone else. At first, renting the property might have been the furthest thing from our minds, but in today's current market many of us have had no other choice but to consider renting our homes out. When we first closed escrow on our homes we agreed to follow the CC...R's.
Rental properties have often been associated with higher crime rates, declining values and homes that are not maintained. Although this is a perception by most, it is usually not common in every community with rental homes. But a couple of bad apples ruin the bushel.
With the declining Real Estate market and more homeowners considering renting their homes, we are starting to see Homeowners Associations attempting to amend their CC...R's to include rental home restrictions. Many people believe that CC...R's cannot be amended. Amendments happen regarding all sorts of rules and regulations. Can this be true for rental properties too?
When we agreed and signed the purchase agreement on the home, we also agreed to abide by the Homeowners Association Rules and Regulations. Well, that is just fine and dandy, but can the HOA's now change these rules midstream?
The issue with amending the CC...R's after the purchase may be difficult but it can be done. When purchasing a home in a Homeowners Association, read the documents carefully. Consider the long term effects of the restrictions and how they may apply to your investment strategy. - 31821
Typically, Arizona homes built after'90 are located within a Homeowners Association with restrictions known as Covenants, Conditions and Restrictions ("CC...R's). As a homeowner within the Association, you are bound by the restrictions imposed within these documents. Simply put, these documents regulate a homeowner's use of the property.
These CC...R's are provided to you prior to purchasing the home and should be read carefully. Usually anything that can be seen from outside can be controlled by the HOA. A bench in the front entry or even window coverings is two good examples. The HOA rules can regulate what plants and trees are allowed in your yard, the paint color of your home and even if you are allowed to lease your home. Some buyers request specifically from their real estate agent, to see only homes in non-HOA communities but these types of developments are far and few between.
During the real estate boom, many builders and HOA's began improvising and changing their rules to include if your home could be used as a rental. Or the rules stated how long you had to occupy the residence before renting to someone else. At first, renting the property might have been the furthest thing from our minds, but in today's current market many of us have had no other choice but to consider renting our homes out. When we first closed escrow on our homes we agreed to follow the CC...R's.
Rental properties have often been associated with higher crime rates, declining values and homes that are not maintained. Although this is a perception by most, it is usually not common in every community with rental homes. But a couple of bad apples ruin the bushel.
With the declining Real Estate market and more homeowners considering renting their homes, we are starting to see Homeowners Associations attempting to amend their CC...R's to include rental home restrictions. Many people believe that CC...R's cannot be amended. Amendments happen regarding all sorts of rules and regulations. Can this be true for rental properties too?
When we agreed and signed the purchase agreement on the home, we also agreed to abide by the Homeowners Association Rules and Regulations. Well, that is just fine and dandy, but can the HOA's now change these rules midstream?
The issue with amending the CC...R's after the purchase may be difficult but it can be done. When purchasing a home in a Homeowners Association, read the documents carefully. Consider the long term effects of the restrictions and how they may apply to your investment strategy. - 31821
About the Author:
See more information about avondale az homes by clicking the link: avondale az homes today.
