Do Renters Pay HOA Fees? Here’s Who Pays HOA Fees in a Rental Home

Renting a home in a community governed by a Homeowners Association (HOA) can provide a range of amenities and a well-maintained environment. But when it comes to the associated fees, confusion often arises. As a renter, it’s essential to understand whether these HOA fees are your responsibility or if they fall to the landlord. For landlords, determining who pays the HOA fees is a key decision that can affect rental agreements and tenant satisfaction.

Whether you’re a landlord listing your home for rent in Seattle or a renter looking for a condo in San Jose, read this Redfin article to find out who is responsible for paying HOA fees.

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Who pays HOA fees?

Ultimately, this choice is up to the landlord. Some landlords pay the fees themselves, which can be the best way to ensure fees get paid on time. Others require their renters to pay. This happens in one of two ways:

• The renter pays the HOA fees to the landlord, who then pays the HOA
• The renter pays the HOA directly

HOA bylaws may govern which of these options is possible. Regardless, any information related to the renter paying HOA fees must be included in the lease agreement. If landlords omit this information from the lease, they’re legally unable to circle back when fees are due and demand the renter pay them. There are plenty of landlord resources to help determine which option is best.

What are HOA fees?

Homeowners Associations (HOAs) cover a variety of costs associated with living in a neighborhood. HOA fees can cover anything included in maintaining and improving the common parts of the neighborhood. The costs can vary widely, but typically average between $200 to $300 per month.

Some communities have yearly HOA fees, meaning the payment is due in full once a year, rather than month-to-month. Costs can vary year-to-year based on what projects need completion and whether there’s a surplus available to deal with unexpected issues.

Most HOA fees cover those amenities shared by the community and can include:

• General maintenance
• Landscaping in common areas
• Signage
• Insurance and utilities for amenities
• Gates

Amenities usually consist of any combination of a pool, tennis courts, clubhouse, fitness center, parks, and nature trails. HOA fees are dependent on many factors specific to each community, so the costs can vary widely. The number of amenities and the property’s location are the two primary factors that impact the fees, but they’re not the only factors.

Regardless of the cost, the purpose of HOA fees is the same almost everywhere. They’re in place to keep the community functional and well-kept.

Other responsibilities of an HOA

In addition to collecting fees and managing common areas within the community, an HOA is responsible for enforcing certain standards set by the community. HOAs are a legal body, so there’s a board, regular meetings, and a voting structure in place to approve changes, update budgets, and receive community feedback.

Standards are typically known as “CC&Rs,” short for covenants, conditions, and restrictions. Homeowners are usually given a copy of the most recent CC&Rs when they buy property in a neighborhood with an HOA. These rules are typically extremely detailed to maintain a consistent look throughout the neighborhood. 

For example, it may restrict the colors of paint you can use on the home’s exterior, what you can display on your front lawn, and how long holiday decorations can be left up. They can also be more relaxed, only covering rules for communal areas. CC&Rs are often updated each year, so it’s important to notify renters of the new rules.

Many people purchasing houses like having an HOA since it may impact property value. The stricter rules around maintenance and appearance can help keep homes in better shape overall, which may positively impact the sale price when the time comes to sell.

How does having an HOA impact a rental property?

Since HOA fees are mandatory, either the landlord or renter will have to pay. No matter who pays though, it’s the landlord’s responsibility to enforce community rules. For example, if the HOA requires specific front yard maintenance, the landlord will need to let the renter know what guidelines to follow.

The best way to educate renters about your HOA is to share any guidelines or governing documents with your renter. This includes the HOA fees and how often they are paid. Landlords will also want to include language in the lease that explains the renter’s responsibility and the consequences for not maintaining HOA bylaws.

How to include HOA fees in a lease agreement

If you’re a landlord asking renters to pay HOA fees, you’ll need to create a separate section in the lease that speaks to this responsibility. The language should state that HOA fees fall on the renter. Also include specifics, such as the amount of the fees, when and how they’re paid, and what the consequences are for not paying them.

These consequences are ones landlords enforce, not ones that may come from the HOA itself. Landlords may even consider making the due date for HOA fees earlier to avoid any repercussions. It may also be worth considering factoring HOA payments into the monthly rent, rather than a separate cost. 

Additionally, failure to pay HOA fees may be an evictable offense for renters. Failing to pay HOA fees can be a serious offense from the perspective of the property owner. Most landlords don’t want to have to take on that liability if they’re not making the actual payment.

Since HOA fees can change from year to year, landlords should make sure to review and update this section each time you sign a new lease or renew a lease from a current tenant. It’s also possible to add an addendum to a current lease if something should change related to the fee structure from your HOA.

What’s the penalty for not paying HOA fees?

The bylaws of your HOA will determine what happens if fees aren’t paid, but the situation can get tricky for renters. If the landlord has made the renter responsible for paying and they don’t, landlords will still face the consequences. This could mean anything from incurring late fees to dealing with a lien on the property.

To avoid this, no matter who’s paying the HOA fees, landlords may want the payment to go through them first. That way landlords can keep track of it. The easiest way to do this is to include HOA fees in the rent. Break down the annual cost and roll it up into the monthly rent collected, but let your renter know this is happening. Don’t leave renters questioning why the rent is a little on the high side without them understanding what it’s covering.

HOA fees are one of the more confusing parts of landlord-tenant relationships. It’s not always clear who pays HOA fees or the best way to determine who should. Since there’s no right answer to the question, the best thing is to have clear expectations and put everything into the lease. It will prevent last-minute questions and hopefully ensure HOA fees are never late.