HOAleader.com - Tip of the Week - October 28, 2011
Published: Fri, 10/14/11
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Trick Question: Who's a HOA Renter?
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Some questions that seem so simple are actually riddles
wrapped in enigmas, as the cliché goes. In this week's tip,
we unravel the definition of a renter when your governing
documents prevent rentals but one of your owners has his
uncle's brother's son's stepsister living with him.
No doubt, this is a very common problem in HOAs. "Here's
the scenario where you come across it," says Steven Daniels,
coordinating partner of Arnstein & Lehr's West Palm Beach,
Fla., office, who has advised hundreds of HOAs. "The HOA
says owners aren't supposed to rent without permission,
and you find Mr. Jones is renting his house. You tell him
he never got permission. He says, 'That's not a tenant!
It's my Uncle Mo. I told him he could stay there while he
looks for a job.' Whether it's a close family member, a
second cousin, a second cousin's father-in-law or brother,
what do you do?"
Bill Worrall, vice president of The Continental Group,
which is based in Hollywood, Fla., and manages 1,300
condominium and homeowner associations totaling 310,000
residential units, says sometimes, there's not much HOAs
can do when relationships are fuzzy. "Associations
typically keep leases on file for each unit that's
rented," he explains. "That's part of the recordkeeping
that's required. But I see communities fight over who's
a renter quite often in this market.
"A unit owner will rent his unit without disclosing that
to the association," explains Worrall. "He might say a
family member will use the unit for the next month.
But in reality, the unit owner's collecting a rent check
and maybe has a lease. You often see that in an
association where short-term rentals aren't allowed
because the governing documents call for a maximum of
one lease per year. If an owner can't rent his unit
for a year but only for six months, he'll tell the
association he has a guest. That becomes a sticky
situation. The association often has no ability to deny
access to the property."
Sure, Worrall says, you can request that the owner provide
information in writing. "You can ask how long the guest is
going to be here and for identification information for
access-control purposes--like key fobs. The association has
a right to keep that info on file. But without seeing a
lease, it's very difficult for the association to prove
the person is a tenant."
There are two schools of thought on who's a renter in
an HOA. To learn both, see our new article:
http://www.hoaleader.com/members/639.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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This week's tip is a must if you've got a sneaking suspicion that
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on the board.
Click here to read full article:
< http://www.hoaleader.com/public/636.cfm >
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Is Your HOA's Developer Shirking His Responsibilities?
In this week's tip, we give you a head start on holding your
developer to his obligations.
Click here to read full article:
< http://www.hoaleader.com/public/634.cfm >
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self-insurance is and discuss the risks.
Click here to read full article:
< http://www.hoaleader.com/members/632.cfm >
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Signs, Signs, Everywhere Are Signs. Can You Ban Them?
Tired of seeing owners' flyers on every elevator in your building
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Click here to read full article:
< http://www.hoaleader.com/public/630.cfm >
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are three ideas from a board member and our experts.
Click here to read full article:
< http://www.hoaleader.com/members/631.cfm >
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