Who Pays HOA Fees and Fines?
HOA collects monthly fees to cover the maintenance of public areas, buildings, amenities, and other expenses incurred by the community. You will need to specify who is responsible for paying the HOA fees in the lease agreement. Most landlords choose to pay the HOA fees directly and raise the monthly rent to cover this cost. Most landlords prefer to be responsible for payments, because late payment on HOA fees will incur fines. The HOA may also fine residents for breaking the Covenants, Conditions, and Restrictions (CC&Rs). For this reason, you should set up a system for dealing with HOA fines incurred by your tenant. If your tenant is responsible for all HOA fines, you should include the notification and payment procedure in the lease. You should also include a copy of the HOA CC&Rs with your lease and go over it with your tenants prior to signing. You don't want tenants pulling out of a lease within the first month because they aren't comfortable living under specific HOA rules.