Would your HOA be happier if it increased its budget this year? If you said yes, you should know that this goal is more achievable than you think, especially if your community has an attractive collection of amenities available to owners.
Download our free garden plot rental template
Most associations have standard amenities available to all owners. They can use the pool, fitness center or walking trails at any time during operating hours. While these amenities aren’t free (a portion of HOA dues is allocated to amenity repair/maintenance), owners don’t have to pay additional money to use them.
Larger HOA communities may choose to offer more unique amenities to owners for a fee. Garden plots, self-propelled boats, bikes and tennis courts are a few good examples.
Table of contents
- Will owners pay to lease recreational HOA amenities?
- Booking an amenity vs leasing an amenity: Is there a difference?
- What’s in it for the HOA?
- What is the best way to manage recreational amenities?
If your community doesn’t currently charge owners to lease premium recreational amenities, or if you want to replace your current process for a simpler one, consider trying out Condo Control’s paid community assets platform!
Will owners pay to lease recreational HOA amenities?
The short answer is yes. People already pay other companies to participate in recreational activities, so they would not be opposed to paying a reasonable fee to lease a garden plot or a kayak.
Not only can owners access fun things within their own community, but they don’t have to compete with the general public to use the amenities.
That being said, the HOA must be prepared to maintain the equipment or spaces so that amenities remain in good condition. If they don’t work well, look worn out, or are unsafe, owners won’t pay to use them.
On a similar note, the HOA must ensure that there are enough amenities available for the initiative to be profitable. If there are only 5 rental boats available for 1,000 people, the association probably wouldn’t generate enough money to be considered profitable.
Booking an amenity vs leasing an amenity: Is there a difference?
Before we get into the process of managing amenity leases, it’s important to point out that there is a difference between renting out an amenity for an hour or a day, and leasing an amenity for a week, month or year.
The duration of time that an owner or tenant has access to the amenity is much longer. That means owners would also pay a larger fee instead of a small hourly or daily rate. The HOA must therefore trust owners to treat the amenity with care since it will be in their possession for an extended period of time. However, it also means there is less admin work for the association to complete since leased amenities are not returned daily.
| Leased amenities | Booked amenities |
| Used weekly, seasonally, annually | Used hourly, daily, or for a weekend |
| Garden plots, some tennis courts, self-propelled boats, bikes | Clubhouse, some tennis courts, pool, communal golf carts |
| Must be a reasonable number of amenities available to meet demand | Supply can be limited |
| Owners generally pay a higher fee | Owners generally pay a smaller fee |
| Less daily admin work to manage amenities | More daily work to manage amenities |
What’s in it for the HOA?
HOAs can generate revenue by leasing recreational amenities to owners and residents. That additional money can be used to fund projects, increase reserves, or host events. With the right system, associations can collect extra money without expending much effort.
What is the best way to manage recreational amenities?
It is possible for a community to track leased recreational amenities using a paper list or Excel document. But both of these methods are tedious, and neither can automate payments. Plus, the larger your HOA is, the harder it is to manage leases manually.
A paid community assets system not only streamlines the process of approving applications and recording leases, but it can be linked to a payment processing system so that owners can make payments online, on their own time.
When asked what the hardest part about managing leased amenities was, 36% of communities said it was lack of staff. There simply were not enough human resources to manage amenities the way that the HOA wanted.
An online amenity management system can streamline the entire process from start to finish, reducing the time and human resources needed to issue lease approvals to owners and residents.
1. Create rules for leasing the amenity
The association must first define how long amenities can be leased for, how much it will charge owners, and how owners should use the amenities.
For example:
- Garden plots may be issued for one-year increments on a first-come, first-served basis
- Owners who leased a plot during the previous year will be given priority if they wish to renew their lease
- Owners may pay the full amount of the lease before they are assigned a plot
- The application and renewal date begins on the first Monday of March, and will remain open until the last Friday in June or until plots are full, whichever comes first
- Each gardener is responsible for maintaining the garden plot
- Tools are available to gardeners, and can be found in the storage shed
- Absolutely no herbicides are permitted
You can download our free garden plot rental template to see a complete example.
The rules can be posted on the HOA’s website, and/or distributed with the application. It’s important that lessees understand what they are agreeing to before they pay for the amenity.
2. Create a contract or application for lessees
The HOA should have something in writing demonstrating that the lessee has agreed to terms and conditions. This way, if there are any legal problems down the road, the HOA can show that the owner or tenant was aware of the requirements established by the association.
The contract or application can be issued and collected manually, or integrated into an online platform for leasing amenities. Moving the process online makes it quick and easier for owners to submit applications, and staff to provide approvals.
3. Register amenities on an assets management platform
One of the best things about Condo Control’s paid community assets management platform is that the system allows for a flexible setup of paid amenities. Admins can customize what types of assets are available to lease, how long leases last, when renewal periods commence, and how many items or spots are available.
Communities will even have the option to create waitlists for popular amenities to ensure fair access to them. Once a spot opens up, a staff member can easily notify the next person on the list. Not only does this help fill vacancies sooner, but it increases cash flow for the community.
4. Approve requests and process payments
With Condo Control’s paid community assets system, staff can approve lease requests in a minute or less. It is also possible for lessees to submit their payment details with the application so that payment processing can be done online once approval has been granted.
Returning to the poll about managing leased assets, communities cited collecting payments as the second most challenging issue (selected by 33% of participants).
This online solution drastically reduced the time staff must spend taking payments from owners and residents.
Conclusion
HOA communities can leverage software to simplify and improve the way they lease premium amenities to owners and residents. An online system provides convenience to applicants, while significantly reducing the workload for staff and accumulating extra money for the association.
