What to Look for in an HOA's Rules

Homeowners are creating new sources of income through the short-term rental of their vacation homes. They maximize the value of their investment and reduce its total cost over time. 

But home buyers need to understand the homeowners association (HOA) rules that apply when purchasing Orlando vacation homes for sale in Florida. 

When is Commercial Use of Your Home Allowed? 

Your HOA’s Declaration of Covenants, Conditions, and Restrictions (CC&R) provides information related to the rental of your second home. 

Many CC&Rs include an outright ban on any commercial use of your home. These are put in place to reduce issues such as unfamiliar traffic, noise disruptions, and security risks. 

But a blanket ban on commercial use may not include a restriction on short-term rentals. So you need to carefully review the terms of your HOA’s CC&R. 

Local laws can dictate how these restrictions are applied. Municipal and state laws may impose their own restrictions that you need to be aware of before you buy.

Understanding Short-Term Rental Policies 

When short-term rentals are allowed under HOA rules, there may be certain conditions that restrict how your property is used for commercial purposes. 

Your HOA may control the length of stay for rental guests by including a minimum and maximum limit. They may also require guests to register in order for them to keep track of all tenants regardless of the length of their stay. 

Homeowners must understand this requirement in order to determine whether it is worth it to rent their properties to travel guests. 

Protecting Orlando Vacation Homeowners and Renters 

Insurance is critical to protecting you, your home, and your guests. HOAs may also have their own insurance requirements that must be met. 

Property damage is one of the biggest risks that Orlando homeowners face. But short-term rental properties aren’t always covered under the insurance policies of homeowners or their HOAs. 

You should review any existing insurance policies to protect yourself from being held liable for issues related to property damage or the safety of your home’s occupants. 

Supplemental insurance may be required by your HOA. Vacation rental platforms like Airbnb can also provide coverage to short-term rental homeowners. 

Knowing what to look for in an HOA’s rules regarding short-term rentals lets you reap the rewards that owning a vacation home can provide.

The Orlando vacation homes for sale in Florida are giving home buyers a chance to take advantage of the thriving short-term rental market.

Team Donovan helps home investors buy and sell Orlando vacation homes. We work with homeowners from all over the world, and we can help you find the perfect second home for personal or commercial use. 

Contact us today for a free consultation at 407-705-2616.

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