What To Know About Creating HOA Restrictions

What To Know About Creating HOA Restrictions

February 1, 2022 Off By admin

Housing developments have become a popular way for investors to make a lot of money while offering very little in return. If you’re someone who is taking advantage of a community by way of commercial properties like condo developments, you might be curious about how to best run such a space. It can be tricky, especially considering that many organizations will try to enforce rules and regulations that they have absolutely no authority over. To know what you can and cannot do, you need to learn the basics. 

Avoid Setting Nonsensical Regulations 

When it comes to HOA restrictions, you can really only make suggestions. For example, there is an absurd rule in some communities that attempts to limit the number of guests a person can have. The reason this is ridiculous is because the community cannot in any capacity regulate how many guests a person invites into his or her home. There is no legal ground in any capacity here. In fact, attempting to enforce a rule like this could lead to major legal repercussions for your organization. To avoid this, be sensible about rules and look for insurance that includes: 

  • Directors and officers coverage
  • Liability options for the premises 
  • E&O coverage

Know Your Role

The more you know about how to create sensible restrictions, the easier it will be for you to run a condo development that people appreciate. Take time to review the basics and see how you can do your part to keep your community safe.