ZipRecruiter.com reports that Des Moines landlords earn an average of $82,201 annually. With such high salaries, the city is undoubtedly one of the best places to be a landlord in Iowa, second only to Sioux City.
Given the lucrative nature of being a Des Moines landlord, it's only natural for property owners, including those with homeowners associations (HOAs), to consider becoming one. The question is, how should association boards handle rentals in an HOA community?
Read on, as PMI Central Iowa will share practical tips for enforcing HOA rental rules and property management guidelines.
Why Boards Should Permit Rentals in an HOA Community
Allowing rentals in an HOA community can encourage more property investors to buy within the community. Their membership can give the community more valuable funds through the HOA fees and dues they must pay.
Well-managed HOAs may also incentivize renters to consider buying a property within the community. If tenants feel welcome, they may even become a source of free positive publicity! For example, they may recommend the HOA to friends and family looking to buy a home in a place that prioritizes high-quality community living.
Board Strategies for Implementing HOA Tenant Regulations
According to the Community Association Institute (CAI), 68% of Iowa homeowners with HOAs say their association rules protect and improve property values. Nearly the same percentage (67%) also rate their community association experience as "positive."
However, those figures can drop if HOAs fail to set tenant and rental home restrictions. Without proper regulation, HOAs may be unable to protect the community's best interests.
So, while HOA boards should consider permitting rentals, they must enforce stringent regulations. For instance, they must require landlords to conduct thorough tenant background checks. HOA landlords should also adhere to stricter property inspection and maintenance rules.
How HOA Landlords Can Ensure Compliance
One of the best ways for landlords to meet their HOA's rental regulations is to partner with a property manager. A dedicated manager can provide invaluable assistance through:
- Comprehensive but fair tenant screening
- Prompt rent collection
- Lease enforcement
- Property oversight, including inspections, maintenance, and repair
- Tenant management
So, with the help of a property manager, Des Moines HOA landlords are more likely to find highly reliable renters. They can avoid renting to tenants at high risk of non-payment or lease violations. Plus, they can keep their rental properties in top condition without doing the actual heavy lifting.
The most reliable residential property managers are also adept at association management. They can aid individual HOA property owners and the entire community. They can help with HOA admin work, accounting, and facility maintenance, to name a few.
Partner With PMI Central Iowa
Rentals in an HOA community can be tricky, especially if board members lack experience handling such matters. Fortunately, PMI Central Iowa can help. We're a full-service real estate asset and association management company in Des Moines, IA.
Our firm is part of PMI, a national property management company with over ten years of industry experience. It boasts an extensive portfolio, with over $5 billion in real estate assets under its management.
Contact us today to learn about our property and association management services. We'll happily give property owners a complimentary rental analysis!
