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Subject: HOA requiring renters to pay deposit to HOA not owner
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Author Messages
JeannineD
(Florida)

Posts:3


09/01/2017 10:15 AM  
I own a condo in Florida which I lease to renters. The renters have been vetted by both my management company and the approved by the HOA management. They are now requiring renters to pay deposits to the HOA rather than to me, the owner. Can they legally do this?
SheliaH
(Indiana)

Posts:1986


09/01/2017 10:24 AM  
If you want legal advice or answers to "is this legal?" questions, you really need to talk to an attorney.

What do your documents say about renting? Do they require a review by the HOA management company? When were you told renters had to pay deposits? Is that in writing? When did this take effect and why was it done? Is this deposit related to HOA services (e.g. a parking permit or pass to the swimming pool) or the deposit they'd pay when the lease is signed - if it's the latter, I would say the HOA doesn't have any rights to that money.
CarolF
(Florida)

Posts:376


09/01/2017 10:38 AM  
Jeannine - do you owe the Condo Association any money for past assessments or fines?
JeannineD
(Florida)

Posts:3


09/01/2017 10:43 AM  
I've just heard about this deposit requirement by email from another owner that is asking for support against this new rule. The deposit isn't related to anything the HOA provides. It's the same security deposit paid when a lease is signed. Except, they want to require that the deposit is paid directly to the HOA. Thanks for your reply.
JeannineD
(Florida)

Posts:3


09/01/2017 10:44 AM  
I don't owe any fines or assessments. I recently purchased the condo in Dec. 2016 and pay monthly dues on time.
SheliaH
(Indiana)

Posts:1986


09/01/2017 11:49 AM  
If this is a new rule, I would think it would have been announced to the entire community, along with an effective date and reason for the change. then again, lack of communication is the major reason things go haywire in HOAs.

That said, things can and do get lost in translation, so go to the next board meeting yourself and ask them about this rule. Better yet, send a letter and then go to the meeting (paper trails are really helpful). Read your documents to see what they say about the board's authority to enact rules - many give that authority as long as they don't violate the current CCRs and Bylaws, or current local, state and federal law.

When establishing rules, it's best that the board notify homeowners that a rule is being proposed, the reason for the rule and a request for comments and suggestions. From there, the board can tweak as needed and then vote - if the rule passes, there should be an effective date and notice should be sent to the homeowners. Again, the documents might not always require these steps, but keeping homeowners involves increases the chances they'll go along with them.

If none of that has occurred, as the board what part of the documents give them this authority - if they can't/won't tell you, you can decide if you want to comply or go to Small claims court and let a judge decide. Be sure to read the documents yourself so you'll know what you're talking about.
JanetB2
(Colorado)

Posts:3642


09/01/2017 8:09 PM  
Posted By CarolF on 09/01/2017 10:38 AM
Jeannine - do you owe the Condo Association any money for past assessments or fines?

I understand why Carol asked this question ... because in FL if the Owner is behind owing money to the Association then RENT money can be requested to be paid to the association vs the owner. However, if your HOA is stating that deposits are to be paid to the HOA vs the Owner ... ASK them for the Article in your Govering Documents or State Law noting such requirement. When they cannot produce it tell them to kiss your tail end.
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