CA Rental Property Net Loss or Gain?

First off, you are required to file a nonresident California state tax return because you received income that was sourced in California. It doesn't matter if the activity wasn't profitable. You have California income so you need to file.

Second, the question is really if you want to report taxable income on the property or have a passive loss you can use in the future. All deductions/expenses are optional as long as you report all income. Most taxpayers would rather defer a passive loss to the future in case they have fewer expenses (higher income) or when tax rates are lower. 

If you agree with that concept, then including the HOA fees this year is the better option. You'll have less taxable income this year and have a loss you can use in the future when you have a profit on the rental.