HOAs Blocking Investor Purchases?

 

We are running into HOA rules here that we think is causing the owners to "shoot themselves in the foot".

Paddock VillasWith 1/3 homes sales in Ocala & Marion County being investor driven, they have stopped investors from buying. That reduces their buyer pool by 1/3 thus depressing their home prices. 

The objection seems to be that tenants are not as good as home owners.  That maybe they won't keep the yards as nice.  But if the HOA fee is paying for yard maintenance, how can that be?  If noise or other tenant objections are the issue, police it through HOA rules on the owner/landlord.

 

But don't block a huge pool of buyers unless you want your home values to fall even further and faster.

 

 

 Keller Williams is #1

 

Let The Ruiz/Miller Team know who you know that is thinking of buying, selling, or investing in real estate that we can contact today.

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22 Comments on HOAs blocking Investor Purchases?

20 Most Recent Comments Displayed Show All

OCT
22

In our area the HOA has to fill out a rental to owner ratio form for the lender and they are now charging $100 to fill out a question form. Why the high cost to fill out a standard form? They are also selling the covenants and restrictions to the new buyers for a $1.00 a page another fee that is over the top...
4:48am • #3
499,366 Points 13 Featured Posts Outside Blog Called Shot Master

Thanks Wallace and Lenn.  I have mailed a letter to all the homeowners with similar information.  We will see if it has any effect.
5:34am • #4
731,093 Points 15 Featured Posts Outside Blog Called Shot Master

Bob, that does severely limit the number of potential buyers. It pays to read the HOA docs prior to buying.
5:51am • #5
816,021 Points 13 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Is the FEAR of LOSS of Fannie,Freddie and FHA - HOA approval causing this ?????????????
5:54am • #6
499,366 Points 13 Featured Posts Outside Blog Called Shot Master

Michael, they amended the HOA docs after I purchased!

 

Michael Perry, I doubt the HOA is sophisticated enough to be aware of FHA limits.  It is being managed by a former real estate agent who had his license revoked 2 years ago.
6:02am • #7
430,820 Points 1 Featured Post

This is happening here in our area also. The HOA wants all of the dues, the buyer is in a short sale position...The HOA stand to loose it all if they do not work with the attorney in settling this. When a new buyer has the units the dues will be paid.  They may have to walk away from unpaid balances...but will start getting some funds from the unit.
7:17am • #8
499,366 Points 13 Featured Posts Outside Blog Called Shot Master

Thanks Ginger, but AI don't understand.  I pay the HOA dues.  This is about preventing me from buying as an investor.
7:23am • #9
862,353 Points 174 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

It sounds like they either have a history of bad tenants or they just have a limit on how many non owner occupied units they can have.  Either way, you're right, they should adjust to let investors in.
9:01am • #10
182,824 Points 4 Featured Posts Outside Blog Called Shot Master

Bob sometime I just don't understand the logic behind their decisions.  Does it really matter who is purchasing a home as long as they abide by the rules..SMH.
9:02am • #11
390,822 Points 27 Featured Posts Outside Blog Called Shot Master
That's very shortsighted for values in those communities it sounds like.
9:46am • #12
499,366 Points 13 Featured Posts Outside Blog Called Shot Master

Thanks Bryan, they had a bad tenant but the police took care of that.

Thanks Cheryl we agree that is the way to take care of it.

And yes, Hella they are being shortsighted and getting bad advice from their property manager.
10:14am • #13
227,522 Points 8 Featured Posts Outside Blog

I agree that this does not seem like a very good idea.  Eliminating a huge pool of buyers in this market it unwise.
10:38am • #14

Wow, they really need to reconsider their policies and what they are doing to the market and potential buyers, whether occupants or investors.
10:42am • #15
499,366 Points 13 Featured Posts Outside Blog Called Shot Master

Thanks Charlie and Shane.
11:26am • #16
Outside Blog

Is this in the CC&R or a rule passed by the current board? If it's not in the CC&R it takes a 2/3 vote too change it. We had a HOA board that passed a law like that but it was not violated the CC&R's after a lawsuit and damages it go thosed.
12:41pm • #17
161,147 Points 1 Featured Post

In this case you just have to wonder how stupid some people can be. Obviously, they can amaze you with short-sightedness.
1:14pm • #18
499,366 Points 13 Featured Posts Outside Blog Called Shot Master

Yes, Jack they got a 2/3 majority.

 

Thanks Nan.  Wish a few would read this post and all your comments.
1:38pm • #19
379,375 Points 5 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Bob, 

Excellent point.  We've actually had regular buyers who didn't buy homes in certain neighborhoods, as the option of leasing it in the future was removed by the HOA rules.  

All the best, Michelle
4:41pm • #20
3 Featured Posts Outside Blog

Hi

 

I believe that a similar idea was tried by an HOA in Tampa recently and they lost in court.  To me (and this is JUST an opinion) it seems like a discrimination issue.  I dont think that one cannot be allowed to own a home (as an investor) in a neighborhood just b/c they are an investor

 

I say fight it if you can and let it be new case law (then we might be able to get rid of the the Florida DeFacto Govts)
7:36pm • #21
OCT
23
499,366 Points 13 Featured Posts Outside Blog Called Shot Master

Thanks Michelle.

 

Thank you all for reading and commenting
2:22am • #22

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Bob Miller - The Ruiz/Miller Team Ocala & Marion County

Ocala, FL

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