GeorgerwilliamsW (Indiana)
Posts: 975
Posts: 975
Posted:
Many associations have covenant restrictions or rules that prohibit renting, but do permit leases of one year or longer.
My attorney partner just showed me an interesting lease that gets around the rental restriction. In this case, the covenant restrictions of a gated, lakeside community requires a minimum two year lease. The lease must be filed with the homeowners association, but there is no covenant restriction that provides for association approval.
The lease document provides that the lessee make break the lease prior to its expiration date for liquidated damages of $1.00 upon 30 days notice. The home in question is leased for $17,000 per month. In effect, it is a rental.
My attorney partner just showed me an interesting lease that gets around the rental restriction. In this case, the covenant restrictions of a gated, lakeside community requires a minimum two year lease. The lease must be filed with the homeowners association, but there is no covenant restriction that provides for association approval.
The lease document provides that the lessee make break the lease prior to its expiration date for liquidated damages of $1.00 upon 30 days notice. The home in question is leased for $17,000 per month. In effect, it is a rental.