Renting out your home serves as a smart financial move. Unfortunately, you may face unexpected hurdles before you sign a lease if you live in a community that a homeowners association governs. Understanding what Texas law says about this scenario can offer you clarity.
What HOAs cannot do
When it comes to managing your property, Texas statutory guidelines limit how far a homeowners association interferes with your tenant selection process. Under these guidelines, the HOA may not:
- Approve or reject your tenant
- Request a tenant’s credit report or consumer background report
- Demand to see the original rental application or lease paperwork that the tenant submitted to you
In short, the law keeps tenant screening in your hands as the landlord.
What can HOAs still do?
While the law limits administrative oversight, associations still have the power to preserve community safety and property standards. As a result, your HOA may:
- Ask for the name, mailing address, phone number and email address of each resident under the lease
- Inquire about the date and total length (term) of the lease
- Enforce general leasing rules regarding minimum lease duration or occupancy limit
In other words, even if the association cannot choose your tenant, it may still try and enforce community standards.
Take proactive steps
You can usually find your HOA’s rental rules in the county’s public records. Reading these rules can help you see what you can and cannot do with your house. Should you encounter ambiguity in the clauses or rules, you can contact a real estate attorney for further clarification.
