HOAleader.com - Tip of the Week - May 24, 2019
Published: Fri, 05/24/19
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Question for Condos/HOAs That Permit Rentals: Is Your Insurance Adequate?
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In this week's tip we report on a Virginia Supreme Court case that raises an interesting question for community associations — are they ever liable for injuries sustained by guests of an individual owner's home during a short-term rental?
In Haynes-Garrett v. Dunn, the court limited the liability for the homeowner and the management company in that case — the association wasn't sued. But it's raised questions among community association lawyers about whether condos and HOAs should have insurance to cover such instances or whether there other practices they should adopt if their documents permit short-term rentals.
The Virginia case involved a vacation renter of a home who fell on what she argued was uneven flooring where a carpet met tile. The Virginia Supreme Court upheld the trial court's holding that the owners had only the duties of a landlord to the renter. The court also didn't address the trial court's dismissal of the case against the owner's management company; it had successfully argued in the lower court that it had no duty to the plaintiff at all.
However, a question was raised online about whether this case should cause condo and HOA communities to give more thought to their insurance coverage when their communities permit short-term rentals. In other words, does an association have increased liability when it permits owners to rent their units?
As a manager, this case involving a single-family home rental doesn't worry Mary Arnold, CMCA®, AMS®, the Austin, Texas-based vice president of operations of the community manager success group at RealManage, an association management firm headquartered in Dallas, Texas, that oversees properties in Arizona, California, Colorado, Florida, Louisiana, Nevada, and Texas.
"In general, that's going to be on the homeowner because it's their property," she says. "It's a single-family home, and it's the owner's decision to rent that home out. So the owner needs to be responsible for that."
That's true, but the association should double-check its insurance if it permits owners to rent their units. Find out why in our new article:
https://www.hoaleader.com/members/3914.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Does Your Condo/HOA Need Extra Insurance If You Permit Rentals?
A Virginia Supreme Court case raises an interesting question for community associations: When are they liable -- if ever -- for injuries sustained by guests of an individual owner's home during a short-term rental?
Click here to read full article:
https://www.hoaleader.com/members/Does-Your-CondoHOA-Need-Extra-Insurance-You-Permit-Rentals.cfm
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Preventing and Reducing Anger and Tension in Your HOA
Watch this in-depth webinar led by two community association management experts. In just one hour, you'll receive practical and useful information that will help you lower the tension on your board and among your owners.
Click here to read full article:
https://www.hoaleader.com/products/preventing-reducing-anger-tension-b.cfm
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How to Streamline Your Condo/HOA's Gardening Approvals
In this week's tip, we give a reader a head start on creating a policy to allow owners to garden happily while following your association's guidelines. It's in response to a reader's question stating that the association allows owners to garden in the common area but doesn't want to approve every planting by those green-thumb owners.
Click here to read full article:
https://www.hoaleader.com/public/How-Streamline-Your-CondoHOAs-Gardening-Approvals.cfm
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Condo/HOA Gardening Policy Dos and Don'ts
An HOAleader.com reader asks, "We're a condominium regime (two units per building like garden homes; 21 buildings total). Our master deed states that anything put in the common area has to be approved by our board in writing.
Click here to read full article:
https://www.hoaleader.com/members/CondoHOA-Gardening-Policy-Dos-Donts.cfm
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Experts: Debit Cards Are Too Loosey-Goosey for Condo/HOA Finances
We caution a reader on having too-flexible financial processes in this week's tip. It's in response to an HOAleader.com reader's question: "We're a small condominium in Florida. In the past, we've used a condo debit card to allow residents to purchase small maintenance items or to purchase food for gatherings. We've been told that debit cards can't be used by condominiums in Florida.
Click here to read full article:
https://www.hoaleader.com/public/Experts-Debit-Cards-Are-Too-LooseyGoosey-for-CondoHOA-Finances.cfm
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