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Subject: HOA Collecting Dues From Renters
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Author Messages
JohnC46
(South Carolina)

Posts:8347


06/03/2019 9:52 AM  
I believe there is a procedure for an HOA to collect dues direct from a renter if the owner has fallen behind in paying dues. Any information? Thanks
MarkM19
(Texas)

Posts:332


06/03/2019 10:24 AM  
John,
In my old Ca. documents it was under Assignment of Rents. I am no longer on that board or have access to the CC&Rs. As I remember if the owner fails to pay dues and a lien is filed the board can get legal paperwork and have the rent paid directly to the HOA until dues are made current.

I brought this to our Board and could not get enough support for us to follow through. I am wondering if anyone on the site has every been successful in collecting using this method.
MarkM19
(Texas)

Posts:332


06/03/2019 10:43 AM  
John,
I just checked my Texas Development and Declarations DADs which is our CC&Rs in Texas and I can not find anything mentioning "Assignment of Rents" so you probably need to see what yours have in them since it appears like it may be different by State.
RichardP13
(California)

Posts:3596


06/03/2019 11:23 AM  
Below is what is placed in newer, restated CCRs in California

(k) Assignment of Rents.

(i) Assignment. In the event that an Owner(s), who is renting or leasing his/her/its Unit to a tenant(s), is more than thirty (30) days late in the payment of
any Assessment due with respect to that Unit, such Owner(s), pursuant to and subject to, Civil Code Section 2938, and any other applicable law, hereby assigns to the Association all of the rents due or which may become due from the lease or rental of the Unit until such time as the Assessments that are due with respect to that Unit are paid in full.

(ii) Procedure; Compliance with Governing Documents and Applicable Law. If the Association determines, in its sole discretion after proper notice and hearing pursuant to Section 14.06 below, to seek to receive rents as described in this subsection “(k),” the Association shall comply with, and undertake all actions required by, this
Declaration (and the Governing Documents) and the Association shall also comply with, and undertake all actions required by, applicable law, including, without limitation, Civil Code section 2938, as may be amended from time to time and any successor statutes.

Been there, Done that
SheliaH
(Indiana)

Posts:2518


06/03/2019 12:03 PM  
In this state, you have to sue the owner and if you win, you can ask the court to garnish the rent payments - the tenant would have to pay the association instead of the owner. However, some of the paperwork is sent to the tenant for his/her signature and then the collection can commence - if the papers aren't signed, for whatever reason, you're back at square 1, and if the tenant leaves because he/she has other issues with the landlord, you still get nowhere.

Even so, that may be an option worth trying - maybe there's something else the court can do to slap the owner if it becomes clear he/she is trying an end-run around a court order
NpS
(Pennsylvania)

Posts:3367


06/03/2019 3:19 PM  
Sometimes the AOR collection process puts the tenant in a pickle.

On the one hand, here's someone he doesn't know who says that she has a right to collect the rent.
On the other hand, the landlord says I'm the landlord. If you don't pay me the money, you're out of here.

The tenant knows nothing about all this. Isn't even a party to the squabble.

The risk to the tenant is that if he makes the wrong choice and gives the rent to the wrong person, technically, the rent hasn't been paid. At the end of the day, could have to pay twice.

Rules are easy. Actual collection might not be.

Je publie un degagement de toutes responsabilite. Read all posts at your own risk.
MelissaP1
(Alabama)

Posts:8184


06/03/2019 5:15 PM  
I have heard that in Florida they have a law that the renter can pay dues if owner is in foreclosure status. Basically, the renter can pay what the landlord owes to prevent the house from going to foreclosure to the HOA. The renter can then possibly sue their landlord for that money.

Not from Florida but have seen others from Florida post that information.

Former HOA President
EdC5
(Florida)

Posts:83


06/04/2019 7:24 AM  
Melissa,

Not in foreclosure but in arrears.

Edward J Cooke, CMCA, LCAM
GenoS
(Florida)

Posts:2960


06/04/2019 1:05 PM  
Florida allows it. If the renters don't make their rent payments directly to the association then the association gains legal status as a "landlord" and can evict the tenant.
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