Thinking about purchasing a home as a rental? Whether you are an investor or second home buyer this might not be your initial intent but could definitely be a consideration in the future. As a second home buyer you may consider renting your home during the off season. Could you imagine a law informing you that you are restricted from renting your home? It occurs more frequently than one would believe.
Many areas throughout the United States, especially in more populated areas have Homeowners Associations. These HOA’s have rules called CC…R’s (Covenants, Conditions … Restrictions). You have an obligation as a homeowner to abide by these rules and regulations. These rules and restrictions mandate how you as the homeowner can use the property.
Surprising enough there are guidelines as to what percentage of grass you are allowed in the landscape, the colors and trim on your house and even your window treatments. Review and thoroughly read the CC…R’s before purchasing a home. You are usually given a certain time frame to review these documents and will have an opportunity to cancel your contract.
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.
People’s perception of rental properties usually relates to higher crime rates, declining property values and un-kept homes. Although this is the assessment by many, it is not true in most cases. In the current housing crisis the foreclosures and bank-owned properties are portraying a worse image.
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?
Most states have laws clearly stating that if you reside in a Homeowners Association that has CC…R’s, there is a contract between the property owner and the Homeowners Association. When you execute your purchase, the imposed restrictions are binding. Hence, you must follow the rules.
Although somewhat difficult these amendments to the CC…R’s are realistic and can be done. Take these factors and considerations to heart when purchasing a home. Your investment strategy decisions could weigh differently in the short and long term.
See more information about Jeffrey Austin Phoenix Real Estate by clicking the link: Jeffrey Austin Phoenix Real Estate today.
categories: real estate,homes,finance,mortgage,self help,marketing,entrepreneur,money,education,foreclosure,loans,blog,leasing
