Is Leasing Permitted? HOA Issues in Georgia
Often HOAs are not subject to the POA Act when the HOA is first created by the neighborhood’s developer. Once the management of the HOA reverts from the developer to the homeowners, it is common that the homeowners will then file an amendment to the covenants making the HOA subject to the POA Act so that any covenants are applicable to all property owners. So you would need to look for any amendments to the HOA’s covenants in addition to the original documents.
Upon examining the HOA covenants, if the HOA is subject to the POA Act, and if there are any restrictions to leasing, you need to understand that the HOA has the power to enforce those restrictions. Depending on how the covenants are drafted, the HOA may have the power to compel your tenant to pay the rent to the HOA or the HOA may evict your tenant if the lease was not properly authorized by the HOA.
Do your research before making the purchase. Since these covenants are recorded documents, trying to use the excuse “I didn’t know” later is not likely to help. This is just one more step in performing your due diligence. Invest wisely and profitably.
Excalibur Homes is an investment real estate firm who specializes in the management of single-family rental homes. Click here to view our Leasing & Management Services.