It is easy to forget about all the little things you should remember and consider when you’re so excited to be buying a vacation home along the Shore. We get it! However, it’s important to know that many neighborhoods and buildings do have a Homeowners Association (HOA). Within that HOA are bylaws that you will be required to follow as a homeowner. Before you start the buying process you want to read those bylaws and make sure there are not any red flags when it comes to your future vacation rental.
Here are just a few things you should be looking for:
1.Know the bylaws of the HOA and any CC&Rs
As we mentioned, when buying a vacation home or condo you want to be aware of the HOA bylaws and a document called the Declaration of Covenants, Conditions, and Restrictions (CC&Rs). The rules in these documents are updated, changed, and maintained by a board of directors of the HOA. Be thorough and consider any potential challenges these documents may have if you are considering short-term rentals of your vacation home. Many times there are restrictions for rentals under 30 days. If you are wanting to rent out your vacation home this could put a stop to that.
An HOA is comprised of owners in the community or complex and it’s important to do your research to find out how stable the HOA is. Are there a lot of bylaws currently being broken? This could be a sign of an HOA that is not strong in enforcing the bylaws. While you don’t want to be made to feel like you are being held hostage in owning a home in the community, you do want to see an HOA that is stable and enforces major HOA bylaws. Also look into the financial stability of the HOA. An HOA that is not financially stable may do frequent special assessments that you would be liable for paying.
3.What are the HOA dues?
If you are looking to make income on your vacation rental, you will need to consider all the costs involved in home ownership and that includes the HOA dues. When trying to decide between two properties the cost of the HOA dues could be your deciding factor.
4.What amenities are included?
When trying to attract others to your vacation rental amenities play a big role. Know all the amenities that are included with the purchase and make sure those amenities are kept in good working order. Common amenities could include a fitness center, full-service spa, pool, hot tubs, beach access, movie theater, and even sometimes bike rentals. Always make sure that these amenities would be available to those who are renting your property short term because sometimes certain amenities are reserved for owners only.
You want owning a vacation rental to be a positive experience and it can be with a little bit of research beforehand. If you are looking for the perfect vacation home along the Jersey Shore we are here to help. The Ferzoco Group are experts in real estate from Ocean City to Cape May. Real estate is one of the biggest investments of your life and The Ferzoco Group knows what it takes for you to make that leap of faith in real estate. We provide you with the tools, professional service, and resources it will take for you to live the dream. Contact us here, or give us a call directly at (609) 399-5454. We are here to help you with all your real estate needs.