Are rentals a business?

Holly, rentals are not considered a personal business as they do not create an abnormal problem, such as excess traffic or parking problems. As a guide against discrimination ask "how does this poorly kept rental differ from a poorly kept homeowners property?" Check to see if your Declaration allows rentals. And if so, there is usually a statement that the owner is responsible for Covenant compliance. Contact the resposible party in writing on violations of restrictions and provide them with a copy of your policies and procedures on Covenant Compliance. Following is an example for an HOA with single family homes in Colorado:

Rules and Regulations on
Enforcement of Covenants and Rules

In order to maintain property values, safety, and quality of life the Association enforces restrictions itemized in the Declaration (Covenants), Bylaws, and the Rules and Regulations (sometimes called Policies and Procedures). This may be referred to as Covenant enforcement, or Covenant control, or Covenant compliance.

The Property is monitored weekly by the managing Agent for Covenant compliance. Owners can also report problems to the Agent and may request anonymity. The Agent will investigate and shall photograph potential violations. A Demand letter will be sent to the Owner advising of the alleged violation, the controlling regulation, a time limit for correction (typically 10 days), and the right of the Owner to request a Hearing before the Board of Directors to challenge the cited violation.

To dispute a cited violation the Owner shall promptly submit a written request to the Agent for a Hearing. Upon receipt of such a request, a Board of Directors meeting will be scheduled and arguments heard. The Owner shall be mailed a Notice of the Hearing date, time, and location; the alleged violation with reference to the controlling document, and the proposed sanction if a violation is confirmed and is not corrected within a timeframe determined by the Board. The Owner will be allowed to present a statement, evidence, and witnesses to support their position. After the Hearing the owner will promptly be advised in writing of the Board's decision.

When a violation is not corrected within the specified time limit, an initial fine of $50.00 shall be assessed. If a violation is not corrected, subsequent citations may be issued and the fine will be doubled compared to the previous Demand letter. If necessary the Association shall get a court order to correct the violation and effect corrections required. The owner’s property shall be assessed for all costs involved. This will include, but is not limited to, the costs to correct the violation, fines, fees, attorney fees and court costs.

Following are Rules and Regulations which clarify and supplement restrictions listed in the Declaration (Covenants):

1) Modification to the exterior of property requires prior written approval by the Architectural Design Review Committee (ARC) on an ARC Request Form. Failure to get approval may result in removal or redoing plus a fine. Approval shall include, but not be limited to, consideration of a pleasing appearance which is in harmony with other property in the subdivision.

2) In accordance with provisions of Senate Bill 05-100 amendments to the Colorado Common Interest Ownership Act, one political sign per candidate or ballot issue is allowed on your property within the time period of 45 days before until 7 days after an election. No sign may exceed 36” by 48”, or less if specified by a City of Lone Tree Ordinance. Also, the American flag may be displayed when the display is consistent with the Federal Flag Code; and a service flag may be displayed by an owner whose immediate family is a member of the active or reserve military service.

3) Landscaping shall be maintained in a neat and attractive condition, including periodic watering, fertilizing, trimming, pruning, removal of weeds, and replacement of landscaping when necessary. In accordance with Senate Bill 05-100, Xeriscaping is allowed however the plans must be approved by the ARC. Landscaping variances may be issued during drought conditions.

4) Vehicles are in violation if they obstruct the flow of traffic or block driveways or sidewalks. It is a violation for trailers, boats, motor homes or other type recreational vehicles to be parked in view except for temporary loading and unloading. Emergency vehicles which weigh less than 10,000 pounds and display an official emblem are not prohibited if they do not impede the safe and efficient use of streets. Vehicles shall be parked in the garage with overflow parking in the driveway. Street parking is only allowed for short periods of time. Garage doors shall be closed when not in use.

5) Household pets must be under control on a leash when not secured in the house or in a fenced yard. It is a violation for an animal to threaten or attack a person or another animal; the Owner shall be responsible for all costs if any medical treatment is required. Excrement shall be cleaned up immediately. Pets that bark or make other noises which irritate neighbors are a violation, except for brief barking of dogs as people pass by.

6) Installation of satellite dishes and antennas, notwithstanding the Over the Air Reception Devices Rule adopted by the FCC pursuant to the Telecommunications Act of 1996, shall be erected in such a manner as to be hidden from the street or other neighbors view, if this can be done without unreasonable delay or increased cost, and does not preclude the reception of an acceptable quality signal.

7) Unsightly conditions are a violation when visible from the street or from other houses. Trash and trash receptacles shall not be visible; except during trash pickup when they shall be placed near the curb, but not blocking the sidewalk, after dusk the day before trash collection and removed soon after the trash is collected.

8) Nuisances encompass those actions and activities which are stated in the Declaration. Loud noises, blocking sidewalks, and failure to remove snow from sidewalks within 24 hours are violations.

Did I forget Dirty Mary and Crazy Larry? UUh yes, believe it or not, I actually DO live in an "upscale" neighborhood......

Check with the HOA Attorney. If you have in your by laws no business or trade you might have a legal case against the homeowner. Lots of Luck

EdR, that's good: "the rule we use is that if you cannot see it, taste it, hear it or smell it, it's not a problem."

I hope you assessed his property when "he did things to cost the assn. money (like the attorney and filing of the injunction)." Also, while you can not fine the renter you can fine the owner of a property. When it hurts enough they will take action with the renter.

RogerB

You would need to check your governing documents to see if they specify the Board may enter the property to remedy these problems. Keep in mind that you are entering private property and you have to avoid illegal trespass.

For example: I have heard of communities that are allowed to have lawns mowed and charge the homeowner if the grass is above a certain height, but you just need to be very sure of the rights of the HOA here and assuming you have the right you may even want the Sheriff to escort the contractor onto the property to avoid problems. This is a case to ask your Attorney about before acting.

For rentals: Notify the owner, not the Realtor. The Realtor has no responsibility here. If they are using a management company, then you could try to contact them as well, since they manage the tenants. If the MC will not help you get the tenants to follow the rules, then their customer, the Owner, will be fined and will be very unhappy with the MC. Because of that, the MC may be willing to help and speak to the tenants.

Best of luck.

Holly, your covenants read much like ours on the business issue. "No business of any kind", period.

While i agree that a nice interpretation is the "can't see, smell, hear" etc rule, it is VERY well stated in the CC&R's that the founders wanted NO business. Absolutely none. It's right there in "NO business of ANY kind." That means, even if i can't see it, hear it, taste it, smell it, it doesn't matter. NO. NONE. NADA. Not of any kind, even the invisible/unsmellable kind.

Now, all we have to do is figure out how to enforce this draconian piece of rulemaking, and shut down the web manager, the writer, the artist, the painter, the telecommuter, the kid who mows lawns for neighbors, the teenager who babysits, and myself, since I run the association from my home.

Dang. Some rules suck and are just impossible to truly enforce.

They are not considered a business in Arizona. However, in Maricopa County they must register their rental with the County of Maricopa and provide an in state address that the County can contact.

Additionally some cities also charge a tax on rentals.

HOAs may limit rentals but this has not been brought forward in court so no one knows what the outcome of that would be.

Some HOAs here also charge rental owners an extra administrative fee added to their assessments.

Our HOA has one rental that is being used as a live in senior care facility and our lawyer says we cannot prohibit this.

An additional fee for administrative and other tasks, does not seem out of line to me, though our association does not do this. When the unit is empty, it is up to the association to handle water leaks, make calls and send notification to the owner, follow-up on damage done by owners repair people, etc. It just seems as though we are "managing" their units for them. This is especially true when the owner does not have a local property manager.