If you’re a Texas landlord who rents out property that’s part of a home owner association, it’s wise to familiarize yourself with the state laws that affect Home Owners Associations. It’s yet another task on the never-ending landlord do-list. But knowledge is power, especially when it comes to keeping your real estate investments safe.
Following are summaries of the top 3 Texas Home Owners Association laws that you need to know about. They are the newest ones on Texas law books and took effect between September 1, 2011 and January 1, 2012.
Law #1: Regarding Home Owners Association records
Covenants, conditions and restrictions (CC&Rs) – the Home Owners Association governing documents that dictate how the homeowners association operates and what rules the owners (as well as their tenants and guests) must obey – must be recorded in the real estate records of the county where your property is located. So should any amendments to them.
The same holds true for articles of formation, bylaws, design guidelines and any rules or policies affecting you as a homeowner. A Home Owners Association must also post these documents online.
If an HOA does not adhere to these guidelines, then those rules, bylaws etc. are unenforceable.
Law #2: Regarding Home Owners Association board meetings
All Texas Home Owners Associations must give notice to home owners of in-person board meetings. With certain exceptions for executive sessions, they must open these meetings to homeowners.
What this means for you as a landlord is that if you have not received notice about a meeting that concerns such issues that directly concern you (for example, fines and home assessment increases), boards cannot consider/decide upon those issues.
Law #3: Regarding annual owners’ meetings
Texas Home Owners Association boards must hold annual owners’ meetings. If they do not, then you as a property owner have the right to call one.
If the board still will not hold a meeting following such a demand, then you and other home owners may form a committee to elect board members.
At Herman Boswell, we know that landlords can get squeezed between responsibilities to tenants as well as other entities like home owner associations. This is where we can help. Our team of real estate professionals can monitor each area of your life as a landlord so you don’t have to. For property management expertise you can count on, contact us!