HOAleader.com - Tip of the Week - January 22, 2016
Published: Fri, 01/22/16
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Resist Temptation! Don’t Insert Yourself in HOA Owners’ Rentals
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In this week’s tip, we give you a heads up on a debate started with comments in a recent HOAleader.com webinar on what boards must know to strengthen HOA rules and fine procedures.
One of the panelists, Matthew A. Drewes, a partner at Thomsen & Nybeck PA in Bloomington, Minn., who heads the law firm’s community association representation group, said he advises his HOA board clients to stay out of the owners’ processes for choosing renters.
“Owners should be required to conduct an application process, including at least a criminal background check,” says Drewes. “But the association shouldn’t take possession of or review the applicants’ information, or approve or reject applicants. That’s up to the owner or a managing agent the owner retains . . . That’s not [board members’] expertise, they’re not paid to do that, and there’s the potential for liability.”
A listener, however, had a follow-up point: “We’ve previously stayed out of the rental process and allowed owners to find their own renters. After having several issues with renters this summer, however, we’ve now decided to do background checks to help us avoid some problem renters. Our attorney is comfortable with us doing this, as long as we very clearly follow the rules. Hopefully, that will keep potential liability to a minimum.”
This month’s experts back Drewes in this debate.
“I agree with Matt Drewes—absolutely,” says Phaedra J. Howard, a partner at Hellmuth & Johnson PLLC in Eden Prairie, Minn., who advises associations, with a laugh because she’s sometimes on the opposite side of cases with Drewes in the small community association legal community in which they both practice.
“There are so many issues with the data privacy, who’s had access to the information, and all the potential penalties the association could be faced with if people’s private information is leaked or gets into the wrong hands,” explains Howard.
“Secondly, there’s always the potential for someone to make a fair housing allegation against you as a result of the screening, and the association doesn’t need that hassle,” adds Howard. “I’ve not run across many associations that have power in their declaration except for co-ops. But for most condos and HOAs, they don’t have it in their governing documents that the association has any say whether the potential renter gets approved or not. If you don’t have any authority to accept or reject a tenant, you have no business getting involved in the screening process to begin with.”
Find out what you can do instead to enforce your rules in our new article: http://www.hoaleader.com/members/1314.cfm
Best regards,
Matt Humphrey
President
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HOA Checklists:
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This report is intended to be your road map for an entire year of operations that you begin using today and turn to for years to come. It provides you with checklists compiled by our editorial team with substantial input from experts on HOAoperations and management from across the country to ensure you're steering your association in the right direction and not letting crucial issues slip through the cracks.
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Recent articles posted at HOAleader.com:
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Should You Get Involved in Renting HOA Owners' Units?
Stay out of owners' processes for choosing renters.
That was the advice at a recent HOAleader.com webinar on what boards must know to strengthen HOA rules and fine procedures. It came from one of the panelists, Matthew A. Drewes, a partner at Thomsen & Nybeck PA in Bloomington, Minn., who heads the law firm's community association representation group.
Click here to read full article: http://www.hoaleader.com/members/Should-You-Get-Involved-in-Renting-HOA-Owners-Units.cfm
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Does This HOA's Bylaw Amendment Have Any Effect?
An HOAleader.com reader asks: "The articles of incorporation of this corporation (association) say a quorum is 51 percent of the voting membership, and no amendment has ever been passed (since 1974) to change that percentage.
Click here to read full article: http://www.hoaleader.com/members/Does-This-HOAs-Bylaw-Amendment-Have-Any-Effect.cfm
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Improve Your HOA Meetings: What You Need to Know about Robert's Rules and Other Parliamentary Procedures
Watch this in-depth webinar led by two community association professionals experienced in advising boards on improving their operations--both are lawyers, and they have a combined four decades of experience helping boards make better decisions.
You'll get a road map to help you decide what parliamentary procedures you should follow, and how to use them to improve relationships among board members and between board members and owners.
Click here to read full article: http://www.hoaleader.com/products/improve-your-hoa-meetings-webinar-b.cfm
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Self-Managed HOAs: Do These Things, or Face the Consequences
In this week's tip, we give some friendly advice to self-managed associations.
But first, we give a caveat: At least one of our experts advises against going alone. "I don't prefer self managed properties," says Bob Kmiecik, a partner at Kaman & Cusimano LLC, which represents associations throughout Ohio. "You don't want to be liable for your business decisions, and one way to ensure that is to hire the person with the necessary expertise.
Click here to read full article: http://www.hoaleader.com/public/Self-Managed-HOAs-Do-These-Things-or-Face-Consequences.cfm
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5 Must-Dos for the Self-Managed HOA
HOAs can certainly opt to forego the services of a management company.
At least one of our experts advises against it. "I don't prefer self managed properties," says Bob Kmiecik, a partner at Kaman & Cusimano LLC, which represents associations throughout Ohio. "You don't want to be liable for your business decisions, and one way to ensure that is to hire the person with the necessary expertise.
Click here to read full article: http://www.hoaleader.com/members/5-MustDos-for-Self-Managed-HOA.cfm
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