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FredB4 (Ohio)
Posts: 375
Posted:
If owners are responsible for their tenants, then why rquire owners to provide the board with a copy of their lease agreement, especially if you also require a "renter's agreement" giving , dates, length of lease, contact info and agreement to abide by the rules etc. ? It seems like they would both provide all the info a BOD would require.
An owner recently complained and the only answer I could think of was "because the rules and regulations require it" but it does seem like repetition.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The two things are separate if I am reading it correctly. The HOA would have no idea if the owner is using the property as rental or not unless they have a copy or knowledge of a rental agreement. The owner/renter would have access to the lease not the HOA otherwise. Many HOA's want to limit or impose limits on rentals as they are a serious concern for many reason. So a copy of the lease agreement to the HOA to monitor how many rentals are in the HOA is good information for them to have.

Most off the shelf rental agreements do NOT have a section about following the rules of the HOA. It seems it would be implied but it's NOT in writing. It's best that the rental agreement the owner drafts up does include the renter also abiding by the rules of the HOA. It doesn't mean the HOA can hold any rules against the renter. It just gives the owner the option to cancel the lease agreement with the renter if the renter violates the HOA rules. A very important clause for those who has ever had a bad renter knowing the HOA is going to go after you the owner.

Remember a tenant/renter has rights too. An owner can't just evict a tenant overnight. It can take a year or more to remove a non-paying renter out of home. This not only means lost income for the owner, but assuredly a nuisance to the fellow HOA members. Having the ability for the owner to have that clause about HOA could speed up the process of removing bad tenants. I should know...I rented out my HOA house to a person who fixed his motorcycles on my living room carpets and moved a baby Emu into the backyard...5 months to kick them out...

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
We are a small community of 48 units. I know every unit that is rented so a lease wouldn't help us in that regard but I do see your point..
I shouldn't laugh at the motorcycle or emu but there is no end to what people will do.
Ohio law governing condominiums states the following:

The Association may evict a tenant for violations of the Declaration, By-Laws, or Rules. The Association must give the owner at least ten (10) days written notice. The Association may also be required to give the tenant written notice The costs of the eviction, including reasonable attorney's fees, are charged to the owner and become a lienable special assessment.

I read that to mean that they can be evicted immediately ... well after 10 days.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Here in Alabama for an owner to evict a tenant they must give 2 10 day notices. The first is the "Intent to evict" and the 2nd is for the actual eviction. It's at the end of the second 10 day notice the Sheriff's office can then step in and remove the belongings/people from the home. However, someone versed in the law can extend being evicted by simply replying to the eviction notices to keep it going through the court system. So 10 day notice with a renter's objection response can go up to a year when challenged without paying a dime of rent. It's part of the "Renter's rights".

The HOA shouldn't be able to interfere with any of the contracts of a HOA member and their home. Basically, they can't really dictate things such as how much rent, rental time, or in some cases evictions of tenants. So I am surprised to see the law you have referenced the HOA can evict a tenant. I wouldn't think so. It would be more of a pressure thing against the owner to take action.

It's okay to laugh at the Emu thing. I guarantee you I wasn't when the dang 3 foot baby Emu came running at me from the backyard...However, after being President of that HOA for several years it took ALOT to surprise me. That most definetely did...LOL

Former HOA President
JeffR7 (California)
Posts: 251
Posted:
Fred, most associations require owners to submit a copy of their rental agreement simply to ensure compliance. It's much easier to point out to an owner if there is an issue before there are any problems from his/her tenant.

I am guessing that in order for your HOA to evict a tenant for not compliance with governing docs you'd have to first prove that the tenant agreed to comply with them. This is why it's important that proper language is entered in a contract.
FredB4 (Ohio)
Posts: 375
Posted:
So I can see more value in having a copy of the lease since it is the owner that is responsible for the tenant. Can the association legally require a lease to include certain provisions ? If not what do you do when you receive a lease and it doesn't have the proper language ?
The Ohio statute (for condominums) on evictions seems pretty staright forward but it does include a "unless otherwise provided for in the bylaws" clause so it would be more tricky then what it appears.
Anyway, I doubt that we would ever want the association to become involved in something that really should be between an owner and a tenant unless it was absolutely necessary.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Most "Off the shelf" lease agreements do not have the contigency of obeying the HOA rules. They are written more in generic terms to cover the majority of situations. An owner who is going to rent out their HOA property should put that contigency in the agreement if possible. However, I venture most overlook this and just assume it's implied. Which makes it harder for the owner to actually evict the tenant if they do violate a HOA rule. Being that it's not written in the agreement or a copy of the rules given to the tenant in many cases. Tenants aren't supposed to attend HOA meetings so they may not be aware of many issues.

It's a complicated issue overall and not clear cut.

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
Melissa,
Of course you are correct. Our Declaration gives the owner the right to rent their unit PROVIDED the lease is made subject to the Declaration and bylaws which a lot don't. It is a difficult thing to control.
JeffR7 (California)
Posts: 251
Posted:
Fred, if an owner didn't include required language in their contract you deal with it as with any other CC&R violation - warning letter, demand to fix, fines, etc.
FredB4 (Ohio)
Posts: 375
Posted:
Thanks everyone for the great input.
GlenL (Ohio)
Posts: 5,491
Posted:
Fred many HOA's require specific language in the rental agreements and by having a copy (with the rental amount redacted, that is not the HOA's business) makes good sense. BTW anyone renting their property must register it with the state in Ohio, our County Recorder has the form available on their website.

This is a copy of my reply to another post to give you an idea of the things you could require in a lease addendum:

As to rental restrictions, I’m sorry but it is not rocket science but simple contract law except in California where if the restrictions are not in place by 12-31-11 you are SOL. (Civil Code §1360.2. Rent Restrictions.)

The restrictions IMHO should be drafted by an attorney to make sure they comply with not only the governing documents but all applicable laws. One of the best ones that I have seen requires specific language in the lease protecting the HOA. It requires that the lessee comply with the CC&R’s and covers such things as:
01. Compliance with Association Documents
02. Use and Occupancy of the Residence
03. General Rules (Which cover things like noise, pets, parking etc)
04. Payment of Assessments (Allows the HOA to collect unpaid assessments from the renter and the landlord must accept the balance as if the rent were paid in full)
05. Assignments or Subletting
06. Alterations, Modifications or Improvements
07. Term of Lease
08. Severability and Conflicts
09. Copies of Lease (Board is required to receive a copy of the executed lease, although I would let them redact the amount of the lease, that is not the Board’s business.)
10. Binding Effect
11. Other

And finally the landlord would be an extreme idiot if s/he didn’t have language which passed any and all fines for violations to the renter.

Studies show that 5 out of 4 people have problems with fractions
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Transferring paying fines to the renter is a tricky subject. The fact that many HOA's don't have defined fining schedule in the first place prevents adequate fining against the owner. The only state I know that even allows the renter to pay the dues of an owner is in Florida. That is ONLY if the owner is behind in dues and the renter chooses to pay the dues on the owner's behalf. Otherwise, a renter can NOT pay the dues of the HOA on the behalf of the owner.

I had to foreclose on a property. The owner had a "Rent to own" agreement with the tenant. The owner had gotten a second mortgage basically and with the rent money having the renter pay it off. They had the renter even paying "Extra" in the belief they would have the title to the home by doing so. When the foreclosure process began by us the HOA, the owner tried to make the renter pay their severe backdues. (Several thousand dollars). The renter moved out and left the house abandoned. We finished the foreclosure process and sold off the house. However, the original renter took that owner to court and sued them for all the "Extra" money they had spent thinking they were buying the home. I had to represent the HOA in court proving the responsibility for those backdues that caused the foreclosure was indeed the OWNER's responsibility. The renter won their case.

There are scrupilous owners who rent out there. These people were basically having the tenant pay off their second mortgage on the home while they maintained the FIRST mortgage. The renter may never have gotten title to that home as the owners would have it after paying off the first mortgage. The HOA couldn't do anything about this situation other than enforcing the foreclosure against the owner. Still can't believe that owner tried to force the renter into paying their foreclosure costs too.

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
Glen,
Thanks for the great info. I think our association needs to take a more serious look at this issue.I will use that as a basis.
GlenL (Ohio)
Posts: 5,491
Posted:
Melisa it's not tricky at all if it's is in the lease and I sure wouldn't rent to someone without a way to recover any fines the HOA may impose against me for something the renter did. Likewise the past due HOA fees, if it is done properly. Say the rent is nine hundred a month and the past due HOA fee is three hundred which the renter pays the HOA. The renter would then turn around and pay his landlord six hundred and a copy of the receipt from the HOA, the landlord would have to credit the renter as having paid in full. That is if it is done properly and legally, the devil is in the details.

Studies show that 5 out of 4 people have problems with fractions
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Glen if this was a perfect world. The HOA monitors who pays the dues by the owner's names NOT the tenants. I owned rental property in a HOA and I was responsible for paying the dues NOT the tenant. I upped their rent to cover the monthly dues. Say my house payment was 300. I charged $350 to cover the 50 for dues. Those dues were also a tax break for me as an owner since it was investment property. Wouldn't be much of a tax advantage if my tenant was paying the dues on my behalf.

The reality is that most rental agreements aren't drafted to include following HOA rules. A HOA can't enforce their rules against a tenant in most states. A HOA can only hold the owner responsible. They can't make sure the owner references the HOA rules in their agreements. They can only acknowledge the property is being used as rental. When a HOA deals with rental property they are limited in multiple ways as they can't legally involve themselves in an owner's contract. Plus they can't violate Tenant laws. Those laws even hold the owner back from enforcing and kicking their tenant out. Can't imagine a HOA being any stronger than a landlord of their own property.

Former HOA President
JeffR7 (California)
Posts: 251
Posted:
Eviction can be separated in two categories. For cause and without cause. Most tenant laws mean to protect tenants from 'no cause' eviction. This is where a landlord evicts a tenant because they want higher rents, or a different tenant, or similar.

For cause evictions are much easier to deal with and usually courts will go along with a landlord. 'For cause' is when a tenant violates their contract.

It is in landlord's interest to include proper language in their agreement when renting in an HOA. Any problems and violations would be dealt with a landlord and him having ability to pass it onto a tenant may help him.

As for collecting assessments from tenants it depends on your CC&Rs. Several associations I work with has language in their CC&Rs allowing them to collect assessments from tenants if a landlord falls behind. I know at least one association that has successfully done it.
EdC5 (Florida)
Posts: 117
Posted:
For those of us in Florida, fortunately the state added legislation allowing HOAs & COAs to collect past due assessments from renters in place of paying rent to the landlords until the arrears are cleared. The statutes also prohibit landlords from evicting tenants for paying the rent to the HOA/COA, although the HOA/COA can have the renter evicted for failure to pay rent to the HOA/COA to cover the owner's past due assessments.

Edward J Cooke, CMCA, LCAM
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Even with cause or without cause. Proper notification of eviction has to be served. What I don't like is a HOA putting the pressure on a HOA owner to evict if the owner hands are tied by the law. It takes 2 10 "Working day" notices to evict where I am at. This means that if I serve a notice that weekends and holidays don't count on that notice. It can take easily a month or more by legal channels to do even a "clean" eviction. An eviction a tenant chooses to fight can take up to a year (or more). Which means I don't think the HOA should impose any more fines or punishments during this time if they show the HOA their efforts in removing their tenant.

A owner shouldn't get fined or punished because sometimes the tenants items are physically removed from the house putting them in the yard. The HOA should notify the owner the condition of the belongings so they can make arrangements. An owner still has laws to abide to when/if a tenant leaves their items behind as well. However, a time limit should be enforced to make sure those items are removed/maintained properly if not cleaned up. I've seen sherriff evictions where stuff has been left outside the house before.

Renting isn't easy in a HOA situation. Not everyone in your HOA knows or understands what is involved in renting property out. Expectations don't always match the reality and neither do the rules. So just be careful and make sure recourse is available.

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
Melissa, I agree that the association shouldn't expect an owner to evict a tenant if they can show that they are trying to do the right thing.
From the posts here it seems the key is in the lease between the owner and his tenant. Unfortunately,too many landlords aren't interested in protecting the association, which helps perpetuate the reasoning that rentals are bad for property values.

we are in a situation now where the owner waited until after the lease was signed before telling the renter that she needed to sign the renter's agreement which, among other things, stipulates no more than 4 occupants. The renter has refused to sign putting the owner in violation of our rules and subject to fines.
We realize that this is not easy to prove and have been trying to be patient with the owner over the number of occupants while still threatening to fine her for not having the renter's agreement signed. Obviously, that has caused friction.
The renter is now crying harassement and is saying she will take the association to court.

It is quite apparent to the association and owner that the renter lied about the number of occupants and is also in violation of our rules making the owner responsible for her tenants violation. Of course, this is difficult to prove so weretrying to be patient with the owner while she tries to work it out.

The owner claims that her lease contains a clause that there can be no more than 4 occupants, but now is refusing to provide a copy of the lease saying the association has no right to see a legal document between her and her tenant. So now the association has no signed renter's agreement and we don't know yet if the lease contains that clause or not. Since our rules stipulate that the owner must provide a copy of the lease she is subject to fines for that as well.

Big mess and we are losing patients with the landlord because she has didn't do what she was required to do in the first place, is not cooperating and now has put herself and the association in a situation where we may be fining the owner over something that maybe she can't prove or solve. We want to avoid this situation in the future.

I'm thinking a lease similar to the one Glen outlined would be much better (and legally more binding) than both an "off the shelf" lease and renter's agreement combined and better protect the association.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I think the occupancy limit rules intent are for situations pertaining to multiple renters in one household. Basically preventing the home from being used as a Frat house or renting individual rooms. It just doesn't make sense to me otherwise to have occupancy limits as humans reproduce...If an owner can be married with 3 kids and live in their home, then why can't they rent to a single mother with 4 kids?

Before going overkill on concentrating on the occupancy limits, make sure you understand the intent and situation. There could be a need for exceeding certain limits. What if someone has to take in their family because their home was destroyed? What if someone gets pregnant with twins/Triplets? Understanding the intent of the rule isn't to take action against these scenerios. It's to make sure people aren't renting out single rooms as a business.

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
Melissa, ours is a condo situation with smaller units and shared costs by owners and common areas that need to be considered. While some situations may be acceptable you can't make allowances for one situation and then not make the same allowance for everyone else.
Either the rule or bylaw needs to be changed or the association needs to uphold it in all cases.
Ohio house bill 135 now allows owners to sue the condo association if the association doesn't comply with the bylaws, declaration and rules.
I can see it being less of a problem in a HOA where you aren't just seperated by a wall or floor and have your own parking etc.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
Of course any member can sue their HOA. It's just not a good idea to do so. It's because your suing yourself and your neighbors...A HOA can't knee jerk react to every threatened lawsuit. Quite frankly, anyone who wants to the sue their HOA I say "Go for it". It's much cheaper for the HOA to counter-sue and not file a case. The owner filing will have to eat up alot of the costs and not be on anyone's Christmas card list for a long time.

The funny thing about HOA's are that they are created to be self-managed by the members in them. The rules allow for things to be changed by the membership if they disagree with it. In order to make a change to the rules, it just takes a vote of the membership. There's no need for a lawsuit to force a HOA to follow their own rules. The HOA/owners create the rules of which they want to live by. Instead of going to court, just go to a meeting...The rules change when a majority of owners want them to...It is ALL in the documentation....

Former HOA President
FredB4 (Ohio)
Posts: 375
Posted:
Melissa,
Isn't that just it in a nut shell. The problem is that most owners like the rules and regulations and don't want them changed.It's next to impossible to get them all in one place much less agree on something :-)
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Welcome to the HOA life...;)

Former HOA President
RobynH1 (South Carolina)
Posts: 39
Posted:
I would like to know where you found the state law you referenced in you email.

I really would like to find this state law on the net and give this to
our MC which should already know this information.

We too are a small HOA of 64 .

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