HOAs have benefits for real estate investors, including property value protection; however, there are also potential compliance issues. A violation in an HOA community can be termed as a “nuisance” (e.g., parking, pets) and can lead to fines, tenant disputes, and ultimately negatively affect investor returns.
This guide will outline the common pitfalls that exist with HOAs and provide a proactive framework to help you avoid these issues when investing in HOA communities in Philadelphia.
Definition of HOA Nuisance
In a Homeowners Association (HOA), a “nuisance” refers to anything that violates a community’s governing documents, such as Covenants, Conditions & Restrictions (CC&Rs).
A nuisance is also what creates a disturbance in the safe use of a neighbor’s home, a disturbance in a neighbor’s ability to peacefully enjoy their home, or a disturbance in a neighbor’s property value. A “nuisance” is a very inclusive and broad term that includes all things from excessive noise and unkept lawns to improper vehicle parking.
Some homeowners may be inconvenienced by these rules, but oftentimes, they are for the good of the overall community. Implementing a rigorous maintenance schedule ensures managing HOA common areas and amenities that support community well-being.
Understanding what constitutes a “nuisance” by investors is important because when a violation occurs, it may result in fines, lawsuits against you and/or your tenants, and will affect your investment’s returns and your long-term investment in your real estate.
Examples of HOA Nuisances
Knowing what some of the most commonly violated categories are can help you avoid violations. These may include the following:
Parking Concerns
Examples of violations include tenants parking in a visitor/fire lane, parking their commercial vehicle(s) overnight on the premises, or allowing an unregistered vehicle to be parked on the premises.
These examples represent violations that may obstruct access to other tenants’ parking spaces, create unsightly conditions that detract from the appearance of the entire complex, or result in the vehicle being towed away.
Aesthetic & Maintenance Missteps
These types of violations may include painting any color without approval, failure to mow/maintain the lawn, applying garden decor trends that seem too flashy, or allowing trash cans to overflow and remain in sight on a day when they have been emptied (i.e., a non-collection day).
This type of maintenance failure is considered the most common form of nuisance because it affects the overall visual appeal of the property and, therefore, the perception of the overall neighborhood.
Noise & Annoyance Issues
The noise of a party, a noisy appliance in a quiet hour, or extended disruption by construction all infringe on your ability to enjoy the peace and quiet of your home. These are amongst the most common complaints, and it can be escalated into a hearing and/or fine if it is not resolved immediately.
Pet & Wildlife Predicaments
Violations may include having pets in excess of those allowed, dogs left unattended for excessive periods, causing barking, and owners who do not clean up after their pets.
Feeding birds and squirrels, which attract unwanted animals, is also often prohibited. This creates potential health risks and disputes with neighbors; therefore, the property owner is liable.
Establishing Proactive Compliance to Avoid Issues
Compliance proactively turns rules into an asset (a framework) for your community. The best part is that it’s not that hard, but you’ll need to apply the following recommendations:
Read Important HOA Documents
Carefully read the CC&Rs, bylaws, and rules before leasing or purchasing. Do not just read them over; understand the specific rules regarding parking, rentals, appearance, pets, etc. Having a good understanding of these rules allows you to set clear expectations for tenants from day one to avoid unintentional violations that can be costly.
Communicate First
Have open communication with tenants. Include key HOA rules in the lease agreement and educate tenants on what is allowed and not allowed. Be proactive when communicating with the HOA board or manager in regards to any changes you want to make. This will prevent misunderstanding and show that you are committed to being a responsible member of the community.
Know Your Rights
Read the governing documents that outline the enforcement process for your HOA. This includes the right to receive proper notice, the procedure for requesting an appeal hearing for a fine, and what the HOA can/can’t do.
Bay Property Management Group Philadelphia HOA encourages owners to attend board meetings to understand their right to request a hearing. If you know your rights, you won’t be pressured into making improper changes due to incorrect or overreaching demands.
Bonus: What to Do If You Receive a Violation Notice
You will inevitably get a notice from an HOA even though you are one of the most diligent investors in the world. Here’s the right way to process things if you receive a violation notice:
- Don’t Ignore It: Most HOAs charge penalties that increase daily until the fine is paid. That means a $50 fine can easily go up to hundreds of dollars, and in some cases, could be a lien on your property. Open the notice right away and write down the time frame by which you must reply.
- Verify the Violation: Compare the notice with your HOA’s governing documents. Make sure the violation described (i.e., “Trash cans out past 6 pm”) is actually prohibited in your HOA’s governing documents. Also, ensure the description is correct to avoid errors.
- Communicate Promptly: Respond quickly to HOA management and/or the Board using their preferred contact (most often via e-mail to establish a paper trail), and acknowledge receiving the violation notice. Establishing a positive communication with the HOA management and/or the Board at this point can help facilitate a successful resolution.
- Understand & Execute the Correction: Determine what corrections need to be made to address the violation(s), as well as the deadline for making those corrections. If the violation was caused by your tenant, then inform them of the correction(s) needed right away, and check back with them to confirm they have complied with the correction(s).
- Document Everything: You should maintain a duplicate of the letter (notice) plus all related documents, including emails or letters that relate to correcting the violation and photos documenting that the violation has been resolved. This will provide an excellent record of what happened and be useful if there are disputes later on.
- If You Dispute, Appeal Formally: If you feel the notice was inaccurate, you can dispute it. File a formal appeal in writing with the Board of Directors as described in the By-Laws of your Homeowners Association. Provide your evidence to support your case in a calm manner.
Sometimes, HOAs can be a hassle, which is why partnering with a property management company is a smart decision. These experts can help you handle meetings, ensure compliance with rules, and keep your investment profitable all year round.
Conclusion
To effectively navigate HOA communities, you need to view the HOA community rules as a framework for preserving value in your community, rather than simply a set of restrictions.
By taking a proactive approach to compliance on education, communication, and professional oversight, you can turn potential nuisances into non-issues and protect your investment from unnecessary fines.
Licensed broker Logan Patel holds an MBA in Urban Economics from UCLA and has steered buyers and investors through market swings for a decade. He joined us in 2024 to demystify listings, financing, and neighborhood data with clear, chart-backed advice. When he isn’t scanning comps, Logan coaches youth basketball and scouts mid-century districts for hidden architectural gems on weekend walks.
