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| Author |
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DelfinP
(Illinois)
Posts:3
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| 07/10/2008 8:53 AM |
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Hello,
Our association is three years old, and are looking to develop a specific series of rules and regs about condo owners looking to rent units. We have already passed (in the first year) a cap on the number of units allowed, however we did not specify a time limit on their ability to rent. We now have other members who would like to rent and we need to come up with a fair system (review process) for each owner that would like to rent, and the best way to transition from our existing (non) strategy. Any advice or resources that you have used to develop these types of procedures and enforce them?
33 Units
Chicago, IL
7 units allowed to rent (4 being officially rented)
We have two owners that would also like to rent, which would mean we only have one open space left, and we're concerned about making it fair in the event of several other owners coming forward to rent.
If you would like me to provide any additional info, let me know.
Thanks in advance!
D.J. |
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DonN
(Michigan)
Posts:230
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| 07/15/2008 3:02 PM |
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I suggest that you carefully read the CC&Rs for your condo. The rights of all owners should be defined. Unless the CC&Rs so authorize, restricting the number of units that can be rented is likely invalid and enforceable. It is also unfair. Why is such authorization only granted to some owners and not to all?
If the owners want to restrict rentals, then amendment to the CC&Rs is required. Any amendment must treat all owners equally to be valid, in my view. |
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Don Nordeen
Governance of Property Owners Associations
http://swagman.typepad.com/poa_governance/ |
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MaryA1
(Arizona)
Posts:1888
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| 07/15/2008 3:16 PM |
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Delfin,
Whether or not to restrict rentals is a real touchy issue. I've read articles stating FHA & VA will not grant financing (or refinancing) if there are too many rentals in a condo assn. What qualifies as "too many" is anybody's guess. With the real estate market in such turmoil, it's safe to expect a higher number of rentals at this point in time. So, do you risk buyer's being turned down because there are too many rentals in your assn, or do you risk preventing someone from renting in the hope of forestalling a foreclosure? I would suggest having a meeting of the members to thoroughly discuss this issue. |
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JoanW1
(California)
Posts:12
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| 07/17/2008 4:15 PM |
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| Hi: I live in a Senior HOA, and have served on the BOD for 4 years. During that time, the Board amended our CC&R's in respect to rentals to state, in part, "an owner must live in their home for a period of one year, and then if they wish to rent, they must submit a rental application to the BOD. On the application, the owner must provide information; such as how many tenants will be renting; whether or not there will be a lease; and if so, for how long." Once a renter has been selected, the owner must provide the name(s) and phone numbers for the tenants. The owner is also responsible for providing the Tenant(s) with a copy of our governing documents, and advising them that these documents must be read, and followed. The owner will be responsible for any violations of the governing documents. The amendment to our CC&R's also limits the number of rentals in the community to ten (10) percent. We have 307 home in our community. All members of the association had the opportunity to review the amendment, and then vote on them before it was implemented. As of this date, we are still below the ten percent rental rate, and hope to remain so. I hope this helps. |
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