Attracting quality tenants is a priority of most homeowner’s associations nationwide. However, HOAs can inadvertently turn away quality prospective buyers with a combination of issues, including unfair or unrealistic rules and regulation, poor financial health, and inefficient meeting practices. In this article, we’re going to explore how fairness and readily accepted rules and regulations play a role in preventing your HOA from becoming an association no one wants to be a part of. Even more importantly, back your operation with a LA HOA Insurance policy.
Nearly every HOA has its house rules and regulations. In a suburban subdivision, typical rules would include restrictions on how your home looks from the street (no pink houses on Elm Street). In a condo building, restrictions often cover noise, such as no loud music or noise between 10 p.m. and 8 a.m., or that 85 percent of your hardwood floors must be covered by area rugs in living, dining and bedroom areas, explains Zillow Porchlight.
While these are generally accepted terms, some HOAs enforce rules and regulations that don’t sit well with current or prospective owners. For example, if your HOA does not allow people to wash their cars in their front yard, micromanages upgrades and renovations, or is allowed to enter homes to evaluate a violation, this could lead people astray. However, according to Nolo, the bylaws and CC&Rs commonly also include procedures the HOA must follow when taking any action to enforce the rules. For example, sometimes a violation must be discussed at an HOA board meeting before the HOA can take any action. Usually the HOA must provide written notice to an owner of any alleged violation, and allow the owner time to cure the violation, before fining or suing that person.
Ensure your HOA follows strict laws on how to resolve an issue or dispute so that homeowners are comfortable and you are not putting yourself at risk for a heated legal debate.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.