Garage Sales in Your HOA Community

Springtime is one of the best times for a fresh start. You can purge your home of all the needless "stuff" that seems to take up space. It’s also a great way to earn extra cash by selling unused stuff at a garage sale. However, what if your HOA has rules about garage sales? This article details what you need to know before you begin. 

What are the Rules for Garage Sales in HOAs?

First, check with your board and HOA governing documents to see if garage sales are permitted individually. Some communities have straightforward rules about whether garage sales are allowed or not within community boundaries. 

While personal garage sales may not be allowed in some communities, community-wide garage sales that occur once or twice a year might be.

If your CC&Rs allow for personal garage sales, ensure they still comply with city regulations pertaining to sales tax in your area. If any of the following apply to your garage sale, by law, you need to obtain a business tax registration certificate (a business license):

• The sale includes merchandise for the sole purpose of selling for profit
  
• You hold more than five sale events per calendar year.
  
• Each sale spans more than two consecutive days.

Should Your HOA Allow Garage Sales?

If you are a member of your HOA board, the issue of garage sales has come up at some point during your meetings. Some communities have CC&Rs allowing garage sales, but board members may think they are terrible and want to banish them. On the other hand, some communities may not allow garage sales according to CC&Rs, but residents are pushing to reinstate them. So, what's the best solution?

Typically, the biggest concern about garage sales with board members is that they will negatively impact property values. Since the board's primary responsibility is maintaining property values in the community, they likely have a good reason for their opinion. However, it's important to note that garage sales are typically short-lived events and generally don't permanently affect the community. Some may argue that they've become an American tradition that serves a purpose.

Alternatives Rules for HOA Garage Sales

Before your board decides to banish garage sales altogether, you may want to consider other alternatives while still allowing homeowners to participate in them, just with particular oversight, such as:

• Outlining specific days of the week or times when a sale will be 
  
• The number of sales permitted per resident each year
  
• Requiring operators to register or pay a fee

Curious what your HOA should do about garage sales? Contact us today!

Garage Sales to Foster HOA Community

Another compromise is to hold a community-wide garage sale event rather than allowing personal garage sales. These events enable homeowners to get involved but limit them to one or two weekends per year, which helps manage traffic through the neighborhood and maintain the overall appearance. As a bonus, they help foster a sense of community among neighbors, too.

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