The return on traveling has made rental properties a hot commodity nowadays. According to recent data, Airbnb recorded 1.4 million rentals in the US in September 2022, which is a 23% jump from 2021. With so many people determined to travel, it’s clear to see why occupancy rates are at an all-time high, and more homeowners are thinking about turning their properties into Airbnb to take advantage of the travel boom. Those who own upscale properties may find an increased demand for short-term stays in their homes since many individuals are seeking luxury experiences for their travels.
However, if your area has a homeowner’s association, you may find that there will be a bit of pushback from your HOA once you start renting out your home to strangers. It is always in your best interest to stay on good terms with your HOA, so if you’re thinking about turning your place into a short-term rental, here’s what you need to do before getting started.
One of the reasons why your HOA may not allow you to market your place as an Airbnb is due to several things that could possibly happen while a stranger is staying in your community. Your HOA directors may be concerned about excessive noise, improper garbage disposal, vandalism, theft, or destruction of property, among others. For this reason, you’ll need to be completely transparent to put their minds at ease. Offer to provide as much info as possible on your renters, including their names, contact numbers, and the like. You may also want to draw up some rules and regulations for staying in your place and using the shared amenities if your community has some. Show these rules to your HOA and get their feedback on what rules need to be changed or added.
Charge the Right Fees
Apart from the Airbnb fee, your renters may also need to pay additional fees, depending on the rules of your HOA. For instance, if your guests are staying for a month or longer, then they’ll need to pay the home association dues themselves. Make sure that they’re informed and show them a copy of the HOA fees guide so they’ll know how much to pay and where their payment goes. Note that HOAs usually charge monthly fees to maintain certain amenities and facilities, such as the parking lot, sidewalks, fitness center, neighborhood park, and the like.
Know and Follow the Restrictions
If your HOA does allow you to run an Airbnb, it’s likely that there will be a few restrictions put in place to preserve the safety of everyone, and ensure the quality of life in your community. It’s important to follow these rules to the letter, and let your guests know about these restrictions in advance to avoid problems once they’re on your property. For instance, vacation rentals can be limited to a certain number per year, or there’s a maximum number of guests per booking on your property. They may also restrict you from renting to guests with young children and pets. To prevent fires, they may also put restrictions on cooking in the Airbnb or barbecuing in the backyard. The use of common amenities such as the swimming pool, clubhouse, and gym may also be prohibited, but it’s also likely that your guests will be allowed to use them for a small fee.
Turning your home into an Airbnb can be a great way to earn some passive income. Remember to let your HOA know about your plans, abide by their rules, and inform your guests about any restrictions to avoid hassles in the future.