Policy changes

I live in a Texas HOA and the Directors of our HOA have re-written and filed new policies that go into effect 2/1/12. The policy that I question states: "Owner's shall conduct a criminal background check on all potential renters or users (non-owner occupants) and a copy will be given to the
Board of Directors, PRIOR to occupancy, for approval." My question is: Is this practice legal and why do they have the right to tell me who I can rent my home to? And..why do I have to pay for it? My thought is, if they want a background check on someone, then shouldn't they have to pay for it?

Diane:

I am not sure nor smart enough to know the fair housing laws. But I would make darn sure whatever policy and intended outcomes of that policy follow fair housing. There should be a plan in place to deal with the this. I think a fair question to ask the board is what are they looking for? What would disqualify someone from getting approved as a rentor? Who determines what is a severe crime and what isn't? Who is privy to this information and what steps will be taken to ensure this person's privacy?

I have lived in this HOA for 20 years and this is the first time this has come up. No, they do not do background checks on homeowners here. I have no idea what they plan to do with this information. As I said before, I have lived here for 20 years and my the house is listed for sale. With the way the economy is today, IF I cannot sell right now, I was thinking I could rent it till times were better. I still feel this is between myself and whomever I may rent to.

No, the CC&R's do not have that written anywhere. There are many rental properties within this park...this is just a new policy that will go into effect on Feb 2nd. I am just trying for figure out if this is legal. All I want to do is SELL and get retired to Florida.

This is smart policy writing and forward thinking. Wish more owners and HOA's would require this. I've had to have criminal backgrounf check when I moved into an apartment once. However, it just proved in THAT county I was clear. It's not foolproof.
I can tell you from experirnce that this not only protects you the owner but your neighbors. Which you and your neighbors make up the HOA...How would you feel if your neighbor rented their home to someone with a past? Would you say restricting this violates their rights? I think not. More HOA's need to monitor rental property for multiple reasons and most don't have a method to do this. Producing this paperwork is a goo thin.

This is a revision of the policies & CC&R's dated for Feb 2012 and we are single homes. Again, I understand the need for security...my question is why should I have to pay for something the Board wants?

I know that some condominiums have the authority to approve or disapprove renters.

I understood that condo associations could do this because the association "owns" some of the unit and thus become a part of the contract. I'm not sure how an Association that doesn't own any part of the property being rented can have a say in whom the property can be rented to. Therefore, the legality will likely depend on the specific language of your documents.

You may need to run this by an attorney versed in contract law.

Tim

Because, as I stated, that I've heard condos having authority to approve buyers/renters. If they were a COA I would have been inclined to have said probably. Since they said that they were an HOA, I replied the way I did.

In general there is little difference in the way the associations are organized. However, many States have separate laws for COAs and HOAs. Some laws, like FL, have identical wording for both. Other States do not. Therefore, knowing if it's a COA vs. HOA vs. Co-op vs. Mobile Home Park vs. time share allows us to research and reference the correct laws.

A prudent landlord would perform a background check on potential tenants. You imply that you do not intend to do a background check. My question is why should your neighbors suffer from your lack of prudence?

I would hope your Board checked with the Association attorney before implementing this policy, but as others have said here, getting a background check is a good idea. You want a credit check to see if the renter pays his/her bills on time (if they don't, what makes you think they'll pay their rent on time). I want a criminal background check, not only because I don't want someone who might build a meth lab in the kitchen, but because I want to try and ensure I'm not bringing a nuiscance in the neighborhood (would YOU want to be the landlord who rented to a registered sex offender and half the neighborhood is filled with kids?)

As far as the cost is concerned, you can always request an application fee like apartment complexes do (that's how they pay for background checks). Be sure you talk with your OWN attorney about what information you can ask for and how to protect it - if you get someone's SSN for an application, don't take steps to secure it and another person steals it and commits identity fraud, YOU may be held responsible