Hidden Fees in Property Management: Ensuring Transparency When Your HOA Has a Voice in Rentals

Transparency is essential in managing a homeowners’ association (HOA)—not just for homeowners but also for renters. A recent lawsuit against Greystar highlights a critical lesson: if your HOA has a role in rental policies, it’s vital to ensure all assessments and fees are clearly disclosed upfront.

For renters moving into an HOA-governed property, unexpected charges or hidden fees can lead to frustration and mistrust. As an HOA board, it’s your responsibility to maintain fairness, transparency, and trust for all residents. Here’s how your HOA can set clear expectations for assessments and fees.

Why Transparency in Fees Matters

If your HOA influences rental policies, confusion about assessments or fees can have far-reaching consequences. Renters blindsided by unexpected charges may refuse to pay, causing conflicts with landlords and potentially involving the HOA. Additionally, unclear fees can tarnish your community’s reputation, making it harder for homeowners to find renters or sell properties.

Transparency builds trust. When all fees are disclosed and communicated clearly, everyone—renters, landlords, and homeowners—can budget effectively and feel confident about their responsibilities.

Steps to Ensure Transparency in Assessments and Fees

1. Document All HOA Fees Clearly

Before any rental agreements are signed, ensure that every HOA-related fee is documented, including:

• Monthly or annual HOA assessments.
• Amenity fees for pools, gyms, or clubhouses.
• Special assessments for repairs or projects.
• Additional charges like parking, trash collection, or key replacements.

Include these details in rental agreements and share them with prospective renters to avoid surprises.

2. Require Landlords to Inform Renters

If your HOA allows rentals, long or short term, require landlords to provide tenants with a copy of the HOA’s fee schedule and policies. This ensures renters know their obligations upfront and clarifies accountability for HOA dues or other charges.

3. Publish Fees Online

A dedicated section on your HOA website or portal should outline:

• Standard HOA dues.
• Additional community fees.
• Policies renters need to follow, such as pet restrictions or amenity rules.

Making this information accessible fosters trust and improves communication with renters and landlords alike.

4. Ensure Rental Listings Reflect HOA Fees

If landlords use rental platforms like Zillow, require them to disclose all HOA fees in their listings. Visible fee information helps renters make informed decisions before committing to a lease.

5. Educate Homeowners and Property Managers

Many homeowners renting their properties may not understand how to communicate HOA-related fees. Host workshops or distribute guides explaining their responsibilities. Encourage them to include clear terms in lease agreements about who is responsible for HOA assessments.

The Risks of Undisclosed Fees

The lawsuit against Greystar highlights the pitfalls of hidden fees. Renters were often unaware of additional costs like trash collection or package handling until after paying application fees or signing leases. These practices led to frustration, legal battles, and reputational harm.

If your HOA is involved in approving renters or setting rental policies, failing to disclose fees could expose your community to similar risks. Disgruntled renters might dispute charges, leading to costly disputes that impact landlords, tenants, and the HOA.

The Role of the HOA in Rental Transparency

Your HOA has a unique role in shaping rental policies and ensuring fairness. Transparency in fees not only avoids conflicts but fosters a sense of community where everyone—owners, landlords, and renters—feels informed and valued.

By proactively disclosing fees, requiring landlords to share information, and maintaining clear communication, your HOA can set a standard for ethical property management. This approach protects renters while upholding the integrity of your community.

Building a Transparent and Trusted Community

Hidden fees can create division and distrust in any community. By clearly disclosing all assessments and fees upfront, your HOA can maintain harmony, build trust, and prevent conflicts. Transparency isn’t just good policy—it’s good governance. Lead the way by setting clear expectations for everyone in your community, whether they’re owners or renters.