Homeowner Association Violation Management for Investor-Owned Homes Should not be ignored
3 min read · Written By: May Galan, Senior Vice President, Association Management
Homeowner associations (HOAs) are a common feature in many communities, and they can play an essential role in maintaining property values and ensuring that neighborhoods are well-maintained. However, HOAs can also be a source of headaches for investors who own properties in these communities.
One of the biggest challenges that investors face is managing Tenant HOA Violations. HOAs have the power to levy fines and even take legal action against homeowners who violate the association's rules and regulations. This can be a significant financial liability for investors, especially if they are not aware of the violations or do not take steps to address them promptly. Ignoring them can eat away at your ROI.
There are several pitfalls that investors can fall into when trying to manage HOA violations without a process in place. These include:
Not being aware of violations. If investors are not receiving regular reports of violations, they may not be aware of the problems until it is too late.
Not responding to violations in a timely manner. If investors do not respond to violations promptly, they may be subject to fines or other penalties.
Not resolving violations effectively. If investors do not take steps to resolve violations, they may continue to cause problems for themselves and their neighbors.
Another common mistake is failing to communicate effectively with the HOA. If an investor receives a violation notice, it is important to contact the HOA promptly to discuss the matter. Failure to do so could result in the HOA taking further action, such as escalating the matter to legal channels.
Precedent Management can help investors to avoid these pitfalls and manage HOA violations effectively. Our high-touch process includes the following:
Proactive monitoring: We monitor HOA websites and databases for violations against our clients' properties. This allows us to identify violations early before they become a major problem.
Streamline processes: We have the tools and technology to identify, sort, address, track, and resolve violations as they are received.
Clear communication: We communicate effectively with the HOA on our client's behalf. We work to resolve violations quickly and efficiently, and we keep our clients informed of the status of each violation.
Expert advice: We have a deep understanding of HOA rules and regulations. We can advise our clients on how to avoid violations and help them resolve violations that have already occurred.
Benefits of using Precedent Management to manage HOA violations:
Peace of mind. Knowing that a team of experts handles your HOA violations can give you peace of mind.
Time savings. Precedent Management will take care of all the legwork involved in managing your HOA violations so that you can focus on other things.
Cost savings. Precedent Management can help you Negotiate or avoid fines and other penalties by resolving violations promptly and effectively.
By negotiating on behalf of their clients, Precedent Management has saved their clients millions in fees and fines over the past five years.
If you are an investor who owns properties in HOA communities, we encourage you to contact Precedent Management to learn more about how we can help you to manage HOA violations effectively. Email us at info@precedentmgmt.com to schedule a free consultation.
Here are some additional tips for managing HOA violations:
Read your HOA's governing documents carefully. This will help you understand what is prohibited and what the consequences of violating the rules are.
Be familiar with the HOA's rules and regulations. The first step to managing HOA violations is understanding the rules. This will help you to identify potential violations and to take steps to avoid them.
Be proactive. Provide tenants copies of the HOA Rules and Regulations to help set clear expectations.
Establish a communication plan with your tenants. Let them know that you are responsible for enforcing the HOA's rules and regulations and that they should notify you of any violations that they see.
Stay organized. It is essential to keep track of all HOA violations that you receive. This will help you ensure that you are addressing them promptly and not missing any critical deadlines.
Communicate with the HOA. If you receive a violation notice, it is important to communicate with the HOA promptly. This will help to ensure that the matter is resolved quickly and that you do not incur any additional penalties.
By following these tips, you can help ensure that you are managing HOA violations effectively and avoiding any potential financial liabilities.