Can a HOA restrict Home Businesses?

In general, homeowner’s associations in Olympia have the authority to stop community members from running businesses out of their homes. These particular limitations are usually found in the covenants, conditions, and restrictions (CC&Rs) of your homeowner’s association (HOA), which you should have read and accepted when you purchased your house.

HOAs may have the power to put restrictions on home-based companies, but the primary purpose for doing so is that a homeowner’s business operations may negatively impact the community’s character. For example, operating a car repair business out of one’s garage would result in excessive noise, unpleasant smells, and violations of the rules regulating property maintenance. If you want to do business in your locality, you should first talk with a real estate attorney Olympia, WA.

Does HOA have the power to restrict your home business?

Any business that provides services to customers who regularly interact with the owners has the opportunity to impact the neighborhood’s character. Frequent customers coming and going can disturb the peacefulness of a neighborhood by adding to traffic, creating noise, and consuming parking spaces.

What Happens If My Home Business Has No Effect on the Neighborhood’s Character?

If you run a home-based business that has no impact on your neighborhood, it may be a gray area. Even if none of your business operations have an impact on the community, you can still be in violation if your CC&Rs explicitly prohibit homeowners from running companies out of their homes.

However, a business that is not required to do anything that would disturb neighbors outside of the community’s regular, permitted activities is unlikely to be noticed anyhow. This is not to suggest that you should operate a home business when the regulations of your community expressly prohibit it, but when your job is done inside your house and does not disturb your neighbors, no one may notice your business.

Can a WFH employee have their work restricted by their HOA?

Someone working from home for their company would be subject to the same CC & Rs restrictions as business owners. It suggests that the purpose of these rules is typically to maintain the peace and character of a residential community, even while any commercial or “non-residential” activities may be forbidden.

At the start of the COVID-19 pandemic in the initial quarter of 2020, many people started working from home, and some employers decided to try this model for their businesses moving forward. You generally do not have a lot to worry about if you work from home and your actions have no impact on your neighbors.

Is It Practical to Operate a Business From Home?

The influence on the surrounding area should be the first consideration for your board when determining whether or not to permit a home business in a homeowners association. Not every home-based business has difficulties.

In general, you should prevent any home-based company that compromises the homeowners’ peaceful enjoyment of their home. If the business causes discomfort in the neighborhood, it becomes an issue.

Anyone can understand how that could be challenging, for example, if a homeowner opens a car repair shop in their garage. In addition to generating noise, auto maintenance can detract from a neighborhood’s general curb appeal.

Which Businesses Are Ideally Prohibited in HOA Communities?

Residential communities are homeowner associations. Therefore, you must step in if a homeowner chooses to start a home-based business that alters that trait. The same is true for any kind of business that disturbs peacefulness or keeps other homeowners from enjoying their homes in peace. This usually consists of companies that handle deliveries, have staff members enter, or greet customers on the premises.

The underlying theory is that the community and its citizens may suffer as an outcome of the increased traffic. Delivery trucks arriving several times a day, cars parked everywhere, and strangers coming and going from the area can all have an immense impact on the mental state of the locals. Naturally, concerns about privacy and safety arise.