Many professionals – lawyers, property manager, lenders – encourage co-op and condo boards to promote owner-occupancy of apartments as a way to maintain a high quality of life and robust credit-worthiness. An abundance of subletters, the reasoning goes, hampers a sense of community and makes a building less attractive to lenders. Read the article………………
Are HOA Rental Caps Worth It?
When your HOA allows rentals, whether short-term or long-term, it brings up a number of questions. One of the issues that an HOA board will face is whether or not they want to issue a rental cap. Understanding the benefits and drawbacks of this rule will help determine whether or not this is an appropriate […]
South Carolina Court of Appeals Reiterates Importance of Clear Rental Restrictions
I am often asked by homeowners, property managers, and HOA boards to review restrictive covenants to determine whether their community may restrict leasing in some way. The usual answer is “it depends,” and the South Carolina Court of Appeals made it clear in Community Services Associates, Inc. v. Wall that restrictive covenants must be clear […]
HOA Governance: The Pros and Cons of an HOA Rental Cap
The policies of any HOA are sometimes a touchy subject because, at any one time, homeowners are simultaneously responsible for and subject to the rules set out by their home owner’s association. There are a number of perfectly normal policies that are put into place like a stylistic agreement to keep the neighborhood looking nice […]
We Want Our Neighborhood Back: A North Carolina Homeowners Association’s Guide to the Use and Enforcement of Rental Restrictions
Lending you a cup of sugar, offering to watch the kids, or grilling out on a summer afternoon— whatever the activity, our neighbors are a key part of what makes our communities familiar and unique. Neighbors help make a neighborhood into your neighborhood. Ideally, the people you share your community with hold similar values and […]
Tom Kelly: Condo financing taking dead aim on renters
But the big question behind condo and alternative housing is financing. Will lenders bend their conservative outlook toward condos to support growth? In order to obtain financing, the percentage of owners in many buildings must equal 50 percent. That’s what Fannie Mae and Freddie Mac, the largest suppliers of mortgage money in the country, often […]
Rental Caps: The Good, The Bad and the Ugly
A rental cap is a mechanism put in place to limit the number or percentage of units which may be rented at any one time in a community. While not every community needs, wants, or should have a rental cap in place, before you spend the time and money on getting one drafted and approved […]
Court Concludes Rental Restrictions are Reasonable (CA)
Recently, many residential common interest developments have experienced an influx in the number of short-term rentals within their community. This problem is exacerbated by the increased popularity of websites such as Airbnb and HomeAway. Although profitable, short-term rentals have a significant negative impact on community associations, such as increased damage to common area and violations […]
Communication to Renters: Why It Matters To Your Association
Does your board and management team communicate to the renters in your community? If no, why not? In communities where renters makeup a significant portion of the residents, they are often overlooked by the people running the community. “I’ve never understood why a board wouldn’t want to communicate with its tenants,” according to Marc Kaplan, […]
Limitations on Community Association Approval or Denial of Service Member Rental Applications (FL)
Effective July 1, 2016, § 83.683, Florida Statutes, requires landlords, condominium associations, cooperative associations and homeowners associations to process rental applications submitted by service members within seven days of submission. Within that seven day period, the landlord or association must notify the service member in writing of an application approval or denial and, if denied, […]
Condo Tenants: A Potential Asset
Question: We have been renting a condominium unit in a fairly large complex for the last several years, and our current plans are to stay here for several more years. For financial and other personal reasons, we do not want to buy. However, quite frankly we feel that we are second class citizens in this […]
Owner Function: Addressing Tenant Issues
Another source of contention that is almost always avoidable deals with the actions of tenants. As an owner, you are generally responsible for the actions of your tenants within the association. If your tenant violates the association’s governing documents, you will likely receive a warning letter, hearing notice or ultimately you may be served with […]
How to Avoid Being Responsible for Your Renters HOA Rules Violations
How many times have you been at an HOA board meeting and heard, “it’s the renters who don’t follow the HOA rules” or “our homeowner’s association assessments are increasing because the renters don’t care about our building and following the rules!” Approximately 4 in 10 homes in suburban America are occupied by renters. If your […]
How to handle conflicts between condo owners and renters
Our three-unit condo building allows renters as long as the lease is for a term of at least one year. We bought a unit and then met the other two unit owners on the day we closed. We told them we’d be renting our unit and one of the unit owners has been quite distraught, […]
Kass: Condo Renters – a Potential Asset
Question. We have been renting a condominium unit in a fairly large complex for the last several years, and our current plans are to stay here for several more years. For financial and other personal reasons, we do not want to buy. However, quite frankly we feel we are second class citizens in this condominium […]
Condominium Leasing Restrictions’ Impact on FHA Home Loan Eligibility
Frequently, the governing documents of condominium associations contain limitations on the ability of owners to lease or sell their property, such as provisions requiring owners to obtain the Association’s approval before such leases or sales may take place. Although these provisions are often very important to the association’s ability to protect its members’ happiness and […]
Becoming a Landlord in an HOA Community
Having a rental property can be a great way to add some supplementary income to your pocketbook. When that rental property is in a community with an HOA, it offers a lot of advantages for both you and your tenants, like keeping property values high (which benefits you) but also keeping community areas nice (which […]
Community Association Rental Policies: New Law Provides Leniency for Servicemember Rental Applications (FL)
Community associations which have rental restrictions and policies that require association approval of prospective tenants should be cognizant of a new law that will go into effect this summer. Many association policies in this regard afford the association a fairly lengthy period of time, sometimes up to thirty days, to complete review and processing of […]
Not sure who is living in your community? How to get renters and leases under control in your community.
Over the past few years, there has been a major increase in renters in condos and HOAs, in part due to the surge of Real Estate Investment Trusts (REITS) and other investors buying in community associations. Although, many associations have a process for collecting information on leased units, it is not uncommon that the records […]
Tenants Held Liable for Violation of Condo Smoking Rules
In a recent Ontario case, TSCC No. 2032 v. Boudair, tenants of a condominium unit were held responsible for their violation of the condominium corporation’s rules regarding smoking. Read the article…………
Illinois Appellate Court Invalidates A Lease Restriction Imposed By Rule
Decided by the First District of the Illinois Appellate Court on February 3, 2015, Strobe v. 842-848 West Bradley Place Condominium Association confirms the long-held position of KSN that the board of managers of a condominium does not have the authority to adopt rules that restrict leasing of units when the association’s declaration of condominium […]
Discrimination Against College Students Legal?
A South Carolina court upheld a condominium restriction prohibiting rentals to college students. The ruling of a South Carolina court in not binding in Washington, but it demonstrates how a Washington court may decide a similar issue. Read the article……….
Ask Eli: Impact of Condominium Rental Caps
Question: Will a rental cap in a condo building increase or decrease my property value? Unless you live in a community that relies on a high percentage of FHA loans, a rental cap will decrease property value. However, some communities decide to introduce a cap in order to maintain a quality of life desired by […]
Where Do We Stand on Rental Restrictions? (OH)
The law of rental restrictions is a mixed bag at present. Most attorneys who practice association law believe that to restrict leasing, the declaration of the condominium must be amended, but they cannot agree on the number of votes needed to pass such an amendment, whether 75% or 100%. Read the article………….
How to enforce lease restrictions in a condo building
Q: I am president of my association for a nine-unit condominium building. We have a limit to the number of units that can be leased in the building. The approach is somewhat liberal in that we allow four of nine units to be leased based on minimum guidelines set by the Federal Housing Administration. Read […]
Tenants’ rights in condominium communities
Our firm’s other community association attorneys and I are often asked by condominium association board members about the rights of tenants who are renting units in a condominium to use the common elements – as well as their ability to participate and vote in meetings and elections. Read the article…………
Renting and the Law: Condo owner concerned about rental limits (MN)
Q: For the past eight years I have been renting out my condominium. When I purchased my condo, there was no mention of not being able to rent it out in the future. I have a rental license with the city and have always provided the management company with any requested documents. I have always […]
New Idaho HOA Decision From Supreme Court
Although Idaho courts rely on principles of contract construction to interpret covenants, conditions, and restrictions, there are a few instances that highlight the unique nature of these equitable servitudes and covenants appurtenant to title. One such instance arises when the owners decide to amend terms of their governing documents to restrict rental of private property. […]
Does Your Homeowners Association Have a Clear Policy for Renters?
Do any owners in your homeowners association rent out their homes? What are the Association’s obligations to those renters? What are their rights in the Association? Can you control how many units in the HOA can be rented? Read the article………
Court Upholds HOA’s Short-Term Rental Rules
A California Homeowner Association (HOA) adopted a rule that homeowners who rented out their homes could not do so for periods of less than seven days. Moreover, the HOA imposed an annual fee of $325 on owners who rent out their homes. The purpose of the fee was to defray, at least partially, the extra […]
Too many renters are a bad sign in a condo complex
Back in the mid-1960s, when condominiums were born, they were meant to become an affordable housing alternative to traditional homes. Because of their low prices, many renters aspired for better quality living arrangements and bought a condo unit. Read the article……….
Homeowner Association: $1.2 Million Fee Award Against Homeowners/Short Renting Landlords Affirmed On Appeal
This one is truly frightening and shows why fee shifting is a potential game changer in litigation. Plaintiffs were condo owners who also engaged in short term renting, deciding to challenge enforcement of certain HOA regulations imposing fees for such renting activities, Read more……….
The Importance of Educating Renters in Your Homeowners Association
If you have renters in your community, they are an important part of your homeowners association, and welcoming tenants could create a more positive environment. Having HOA board members take time to meet renters at community events, meetings, and social gatherings might be something for your Board to think about. Read more……..
I Really Don’t Like My Neighbor’s Tenants: Issues With The Use And Enforceability Of Rental Restrictions In Homeowners’ Associations
It is an all too common situation, especially in coastal communities, mountain retreats, and college towns: You bought a home in a planned community that has a homeowners’ association with thoughts of being able to enjoy a quiet, family-oriented neighborhood. Then you find that your community’s amenities are being overrun with transient tenants and their […]
Condo associations restrict rentals for their own good
We received a lengthy comment regarding one of our recent columns relating to leasing restrictions in condominiums. We’ve abbreviated the letter as follows: Q: Rental restrictions really can decrease resale values and hurt individual owners who think they might never have to rent until they find out they do. After all, life is unpredictable. And […]
Short-term Rentals Create Revenue for Owners but Upset their Neighbors and Perplex Association Boards
An owner in your condominium community has begun renting his unit to vacationers, who occupy it for short periods – a day or a few days ? at a time. The owner is delighted with this new source of income, but his neighbors are less pleased with the revolving door of people they don’t know […]
HOA Tenant Tenets
One of the issues that many HOAs grapple with is renters. Some ban them outright, others limit their number. Most live and let live. Interestingly, the HOA has no direct legal authority over renters, only its homeowners. This disconnect creates some practical problems for the board or Manager in communicating with tenants since there is […]
Condominium’s Leasing Restriction Ruled Invalid by Washington Court
The Washington Court of Appeals recently issued an unpublished opinion addressing a condominium association’s attempt to restrict leasing of units. In this case, the condominium’s original declaration stated that no more than 25% of the units could be leased at any one time. Read more……..
Tips for Handling Uncooperative Tenants in a Homeowners Association
As a Board member of a homeowners association you have many duties. Sometimes you might feel like you’re in a tug-of-war when dealing with uncooperative tenants who refuse to adhere to the rules. The Board must act in these situations though and the group needs to stand firm in all matters. Read more….
Taming Transient Turmoil: Managing Renters in Condos
As housing markets in many parts of the country—including New Jersey—have foundered, many developers have opted to convert portions of communities originally intended to be condominiums into rental properties. When a development with no owner-occupied units converts to rental, it’s not such a big deal—after all, no units sold means no unit owners are affected. […]
Rentals, Yes – Condos, No! An answer to the blogophile’s prayer?
If you regularly check in with the community association social media—blogs, Twitter, Facebook—you cannot miss the group of correspondents who have a decided bias against community associations. It’s not always possible to separate fact from fiction, or personal bias from social concern, but the message is clear—there are many people who don’t like their homeowners […]