Rent-to-Own HOA Disqualifying Guidelines
Guidelines are as follows:
- Disqualifying HOA Prohibits home rental
- Requires minimum period of owner occupancy
- Imposes age restrictions
- Prescribes maximum rental term
- HOA-imposed cap on number of leased homes
- Requires HOA approval or copy of resident ’s executed lease prior to closing an Unexecuted lease will be provided prior to closing
- Assesses excessive capital contributions or registration fees, and/or
- Annual HOA dues exceeding 1% of the home list price
- Requires membership in a country club or any other golf, tennis, or recreational facility
- Deems HOA to be a third-party beneficiary of the lease
- Empowers HOA with right to evict resident on Investor’s behalf
- Requires HOA approval of Investor and/or resident (e.g., resident required to provide personally identifiable information, credit and/or background check, in-person interview, and/or personal references)
- Proposed changes to HOA’s covenants, conditions and restrictions of record that include, without limitation, any disqualifying rules or restrictions