HOAleader.com - Tip of the Week - January 31, 2014
Published: Fri, 01/31/14
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What HOAs are Really Saying with Security Deposits from Renters
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In this week's tip, we discuss whether you can, and should, require owners'
renters to leave a security deposit with your HOA in case renters do some HOA
damage during their tenancy. But the real issue is how welcoming you want to
be toward renters in the first place.
Our experts fall into two camps here. Their clients either ask renters for
move-in or move--out deposits, or they ask for a refundable HOA security
deposit, which the HOA holds for the entire term of the renter's tenancy. But
not usually both. Except in the rarest of situations.
"I have clients who put security deposits from renters in place," says Jed L.
Frankel, a partner at Eisinger, Brown, Lewis, Frankel & Chaiet PA in
Hollywood, Fla., who advises community associations. "As part of approval
process to move in, tenants have to put up the deposit. Once they move out,
they get it back if there's been no damage to association property. Those
associations, however, don't also charge move-in or move-out deposits.
"With the deposit, if the tenant does some damage to association
property--like damaging the elevator or breaking the mirror in the
elevator--the association has the ability to go after the tenant rather
than making the owner pay for it," adds Frankel. "That helps the unit owner
because, as a practical matter, how are you going to get any money from those
renters? You're not.
However, requiring security deposits from owners' renters is still pretty
rare. "We don't have any security deposits that are held by the
association," says Steven Parker, president of FirstService Residential
Nevada in Las Vegas, which manages hundreds of community associations.
"The liability for damages to association property always rests with the
home owner. The home owner is liable for all damages done by the tenant. The
HOA's security comes from the fact that the association can levy a fine
against the owner for the damages and nonpayment of the cost of repair."
The bigger question is the message you want to send to owners. The fees you
charge renters either welcome or discourage rentals. Find out more in our
new article: http://www.hoaleader.com/members/944.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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The Real Motives Behind Asking for Security Deposits from Unit Owners'
Renters
If your HOA allows owners to rent units, should you require a security
deposit to be held in case the tenant damages common areas or fails to pay fees
required by the association? Here we discuss the pros and cons--and the true
reasons behind such deposits.
Click here to read full article:
<">http://www.hoaleader.com/members/The-Real-Motives-Behind-Asking-for-Security-Deposits-from-Unit-Owners-Renters.cfm>
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Sue the Owner! No, Sue the Guest! Which is Best?
In this week's tip, we answer a reader's question about whether you can go
after owners' guests who damage HOA property.
Click here to read full article:
<">http://www.hoaleader.com/members/Sue-the-Owner-No-Sue-the-Guest-Which-is-Best.cfm>
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Can You Go After HOA Owners for Their Guests' Damages?
An HOAleader.com asks, "A guest of one of our homeowners recently rammed
into our driveway gate at 3 a.m. because the guest didn't have the remote
control required to open the gate to exit. The incident was witnessed by
several homeowners (after he crashed the gate), and we know which homeowner
he was visiting. We'll be filing an incident report with the police and
seeing if we can file a hit-and-run claim with his insurance company. Some
feel we should be able to hold the homeowner of which this person was a guest
responsible for the damage. What do you suggest is the best course of action
to limit the cost to the HOA?" All of our experts reach the same conclusion...
Click here to read full article:
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Clearing the Smoke on HOA Tobacco and e-Cigarette Bans
In this week's tip, we discuss recent trends in HOAs regarding
smoking--even with the newfangled e-cigarettes. One of our experts
recently drafted the first smoking ban at one of his associations,
including in owners' units. In addition, an HOA in Virginia has banned
e-cigarettes. Can and should you ban smoking and e-cigarettes?
Click here to read full article:
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Be Sure Your HOA Passes Its Annual Check Up
In this week's tip, we discuss your annual check up. If you're running your
HOA like a top, you should be doing certain things annually. Here are just
three of seven crucial tasks you should have on your annual to-do list.
Click here to read full article:
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