Rentals in an HOA Community: Best Practices for Killeen Boards

Rentals in an HOA Community: Best Practices for Killeen Boards

Having rentals in an HOA community isn't uncommon. Although HOA associations in Killeen, Texas, have the final say on whether to allow, disallow, or restrict rentals, homeowners have the right to rent out their properties when they wish.

Unfortunately, if not properly regulated by HOA rules, rentals can defeat the purpose of an association community. These planned communities are designed to be exclusive to homeowners and their families. With an open policy for rentals, it can start to feel like the community is open to all.

So, as an HOA board, how do you balance respecting homeowners' right to use or control the use of their properties with protecting the exclusiveness of the estate?

Here are a few best practices.

Consult With the Homeowners

An HOA is a community of homeowners, and boards are typically comprised of homeowners who have been elected to serve. As such, anything to do with the community needs to begin with the homeowners.

As a board, you can change HOA rules and policies, sometimes without consulting the homeowners. However, for a weighty matter such as allowing rentals in the community, everyone must be involved.

The feedback you collect will inform your next moves. For example, if every homeowner is fine with a complete ban on rentals in the community, your job will be easier. However, that's not likely to be the outcome since homeowners usually have differing views.

Consult a Local Housing Attorney

Currently, neither Texas nor Killeen property codes bar HOAs from imposing restrictions on rentals. But this doesn't mean you don't need any input from an experienced attorney.

There might be specific laws that can affect your decision-making as a board and you don't want to violate them. For example, if you're allowing rentals, you might require homeowners to provide copies of their lease agreements. With New Texas laws that came into force in 2021, you can only request homeowners to provide the agreement.

Therefore, it's prudent to hire a housing attorney to advise you on various legal issues as you craft policies and rules for rentals in your community.

Consider Putting Restrictions on Rentals in an HOA Community

Since it's not good practice to have a total ban or a total permit for HOA rentals, putting restrictions is a perfect middle ground.

To safeguard the community's exclusiveness, limit the number of HOA properties that can be rented out at any given time. This will restrict the number of renters who can live in the community, ensuring HOA homeowners are always the vast majority.

For short-term rentals, it might be fine to restrict the minimum number of nights a property can be rented out. The goal is to ensure there isn't an excessive inflow of outsiders into the community.

Build a Successful HOA Community

Rentals in an HOA community can have a big impact on property values and the overall allure of the estate. With this guide, however, your board is now in a good position to design rules that will protect the interests of both the homeowners and the community at large.

You also need a professional HOA management company to help you enforce those rental rules. In Killeen, look no further than PMI Phantom Realty. Our company is part of the PMI family of property managers, but we're locally owned and family-operated.

Contact us to learn more about our services.