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Subject: Limiting Number of Rentals in HOA
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Author Messages
NpB
(Arizona)

Posts:306


06/04/2020 10:24 AM  
My HOA's CC&Rs require owners holding not less than 75% of the votes relative to the affairs of the Association and 51% of all Eligible Mortgage Holders to consent to a change or modification relating to leasing of lots.

I could find no state law that prohibits an HOA from limiting the number or percent of units that are rentals in an HOA.

Are there any federal government or realty related laws that prohibit an HOA from doing this?

Logistically, how easy or difficult is it to obtain the consent of 51% of all Eligible Mortgage Holders?

I have heard many arguments for limiting rentals in HOA.

What are some arguments against limiting the number of rentals in a neighborhood besides reducing the potential pool of buyers for your home when you want to sell it?

JohnC46
(South Carolina)

Posts:9577


06/04/2020 10:48 AM  
NpB

Some argue that having had no rental limits then adding some in the Covenants is a change in the "contract" (not just an admendment) thus all owners must agree to such a change. If this is true the only way I would see a change passing is if present owner's are Grandfathered in. Even then, a few will vote against.
JohnC46
(South Carolina)

Posts:9577


06/04/2020 10:49 AM  
Posted By JohnC46 on 06/04/2020 10:48 AM
NpB

Some argue that having had no rental limits then adding some in the Covenants is a change in the "contract" (not just an admendment) thus all owners must agree to such a change. If this is true the only way I would see a change passing is if present owner's are Grandfathered in. Even then, a few will vote against.




ADD ON

Our Covents call for a minimum rental of 6 months and it seems to prevent "speculators" bying in.
MarkW18


Posts:1195


06/04/2020 10:50 AM  
Posted By NpB on 06/04/2020 10:24 AM
Logistically, how easy or difficult is it to obtain the consent of 51% of all Eligible Mortgage Holders?



Do you know how to find these companies?
NpB
(Arizona)

Posts:306


06/04/2020 11:18 AM  
Posted By MarkW18 on 06/04/2020 10:50 AM
Posted By NpB on 06/04/2020 10:24 AM
Logistically, how easy or difficult is it to obtain the consent of 51% of all Eligible Mortgage Holders?



Do you know how to find these companies?





How would an HOA Board know who is the mortgage holder for those units that have a mortgage, and even if they were to find out, how would you know who to contact at that mortgage company? Logistically it appears like a complicated process.
JohnC46
(South Carolina)

Posts:9577


06/04/2020 11:32 AM  
Do not be so sure mortgage holders have to be notified. I seen this belief/claim made when not necessary. Time for some legal advice.
SheliaH
(Indiana)

Posts:3307


06/04/2020 12:27 PM  
You can do a search on this website on previous conversations about rentals (they're old, so don't bother replying) - the AirBnB controversy is the latest chapter. As for the legalities - you won't see anything federal, so either get a private attorney (since most of us aren't lawyers) or visit your state's legislature website. That's usually where you'll find state law, so revve up the search function.

Personally, I'm not a huge fan of rentals having seen what's happened in my own community. We're a townhouse community and most of the people who rent their units live off-site and rarely stop by (unless they're collecting rent). Out of sight, out of mind is the norm, so too many of them don't care how the community's run, who's running it (you could sit a blow-up doll at the table and some of them wouldn't notice, except to wonder about the lack of makeup) or whether their tenants are wonderful or hell on wheels. It's true all the mayhem is usually committed by a small number, but those folks can cause a lot of drama.

Some, not all, investor-owners are cheap as hell and howl if the assessments go up to pay for needed services - usually, because the TENANTS cause so much wear and tear on the common area due to the constant moving in and out. In my community, you can tell when the school year is over and people are moving out because that's when the dumpsters are filled with all types of crap (three mattresses this week).

We did have some investor-owners on the board when I served and they were very good - one worked very hard at making sure her tenants follow community rules. The others are only interested in the money and if that got funny because the crappy tenant skipped out on rent too many times, they'd simply abandon the property, which would eventually be sold by the bank at whatever price they could get (assuming there wasn't a tax lien on it and then yet another investor owner would buy it for pennies on the dollar) and then the entire bloody mess would start all over again.

Regarding the financial impact, there was also concern that too many rentals might result in the entire community being considered rental property, thus increasing everyone's insurance costs. Too many foreclosure from investor owners who thought those infomercials made it look so easy could affect the selling price (and property values) of the other units. For me, what irks me the most is investor owners can write off assessments on their taxes and perhaps more if the house is lost in foreclosure, whereas an owner occupant like moi risks losing out on getting a decent return if I sell my house because of all the rentals and the mess that comes with it.

The rest of you can see I'm not a fan, but if rentals have worked to your benefit in your community, please chime in. I will say our association has managed to reduce the accounts receivable caused by all the foreclosures in recent years (still too high, but much better than it used to be) and I think we do have more owner-occupants in the community because our property values have risen. Of course, COVID may turn all this around again, but we'll have to see.
MarkW18


Posts:1195


06/04/2020 12:55 PM  
Posted By NpB on 06/04/2020 11:18 AM
Posted By MarkW18 on 06/04/2020 10:50 AM
Posted By NpB on 06/04/2020 10:24 AM
Logistically, how easy or difficult is it to obtain the consent of 51% of all Eligible Mortgage Holders?



Do you know how to find these companies?





How would an HOA Board know who is the mortgage holder for those units that have a mortgage, and even if they were to find out, how would you know who to contact at that mortgage company? Logistically it appears like a complicated process.



There is a way to find out and yes, if your are changing rental restrictions, then the mortgage holders would need to be notified.
LetA
(Nevada)

Posts:989


06/04/2020 3:20 PM  
It is very hard to enforce rentals in common interest communities. We are in the beginning stages of putting out the voter to change our CC&R's to limit rentals. We are going to do this by putting a 2 year window on rentals on new sales. This will chase off speculators and investors. In this amendment we are going to have two provisions, one is a moratorium on renting out the property within the first two years of ownership and the second is requiring all rentals require the owner to have the renter sign and acknowledge that this is a common interest property and they understand the CC&R's and Rules and Regulations and will abide by them.
NpB
(Arizona)

Posts:306


06/06/2020 1:36 AM  
Obtaining 75% approval from owners is a major hurdle to changing the CC&Rs. Let's say a community has 100 units. Convincing at least 75 owners to vote and then hope they all vote either for or against a change is a monumental task.
MelissaP1
(Alabama)

Posts:9413


06/06/2020 5:10 AM  
Let me share the advice from a lawyer we had when asked this question of limiting rentals. They stated "Unless your HOA owns ALL the homes, then they can not restrict # of rentals". Basically if you do not own the homes then it's none of your business what is done with them. You can control things like conditions of the property. You just can't say someone can not rent out.

However, California is one of the few states that I believe can limit rental BUT it is after a certain year. It isn't a grandfathered in law. So it has to be done going forward not back.

My best piece of advice for a HOA when it comes to rental property. It is NOT limiting nor involving yourselves in rental. What should be done is making sure the membership whom chooses to rent out their property require the tenant to sign a form to agree to the HOA's rules. This should be in EVERY lease agreement. It is NOT in the "off the shelf" agreements. This gives the owner the ability to evict tenants whom violate the HOA rules. Otherwise there is no legal recourse for them to do so if the HOA is holding the owner's feet to the ground for a tenant's violations. The HOA can't evict a tenant but can have the owner with that caveat have the option if necessary.

Former HOA President
MarkM19
(Texas)

Posts:612


06/06/2020 6:20 AM  
My recollection from my Ca. HOA days was we had restrictions on rentals. We were told that if the rentals exceeded that level New Homeowners would have limited Lending institutions that would give them a mortgage. We were in a higher level community and only got close to reaching any rental issues was after the mortgage crisis when many homes went into foreclosure and were scooped up by investors.

I also second what others have said about renters not being the best neighbors. I bet 75% of our issues came from 10% of the community.
NpB
(Arizona)

Posts:306


06/12/2020 6:33 AM  
In my community, there are more problems from non rental properties, yet when another unit is sold that becomes a rental, some people are disappointed and want to limit rentals. I have found no peer reviewed research that indicates rentals of over 30 days lowers property values. It is common sense that limiting the buying pool may make it more difficult to sell a property.
GeorgeS21
(Florida)

Posts:2816


06/12/2020 3:59 PM  
So, Melissa,

Are you saying you believe, with the exception of perhaps, California, that HOAs cannot restrict rentals?
JohnT38
(South Carolina)

Posts:337


06/12/2020 4:15 PM  
Posted By NpB on 06/12/2020 6:33 AM
In my community, there are more problems from non rental properties, yet when another unit is sold that becomes a rental, some people are disappointed and want to limit rentals. I have found no peer reviewed research that indicates rentals of over 30 days lowers property values. It is common sense that limiting the buying pool may make it more difficult to sell a property.




I don't doubt that what you are saying is true for your community. For our's it's the complete opposite. Renters have created a lot of problems and the rental owners are less likely to fix problems when they are asked to do so. In our particular area condo's are a hot commodity so limiting the buying pool is simply not a concern. Our condos are in the $180-$200K range but we are tucked in the middle of much higher priced homes and the schools are excellent. Also, our condos were built in the early 80's and many of our residents have been here from the beginning. Some of them never remodeled their homes. When they die or move investors will snap them up at a low price, do some updates and then rent them out for the income. My point is there will be times when a community would be right to limit rentals. We are one of them and are in the process of consulting with a lawyer to put restraints on rentals.
MelissaP1
(Alabama)

Posts:9413


06/12/2020 5:25 PM  
It is not a "belief" thing George. It is a LAW thing. Does the HOA own the property? How then can they restrict the use of it in regards to rental? They control the EXTERIOR appearances of homes but not what an owner can do in regards renting. Mortgage companies can and will restrict what an owner can do with property in regards to renting. Why? Because they DO own the property. You are borrowing money from the bank to own the title from them.

So whether or not I believe a HOA is irrelevant. I just think owner's need to make sure to have in their lease agreements to obey the HOA's rules. It protects you the owner and the HOA from bad renters. Otherwise you can be stuck with a renter you can't get out. They aren't violating the lease agreement by failing to follow the HOA rules if it's not a caveat. So the HOA is going to hold the owner's feet to the ground for the renter's violations. The owner can't evict because there is no violation of the lease. Hence Tenant's rights...

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/12/2020 5:31 PM  
I’m still confused.

From my limited reading, apparently there are hundreds, thousands of HOAs across many states with rental restrictions ... have I misread or gotten this completely crossways?
MelissaP1
(Alabama)

Posts:9413


06/12/2020 6:08 PM  
Just because it is in there does not make it enforceable. If someone wants to rent their home and they are house 11 and only 10 are allowed what will stop them? Having the restriction doesn't mean it is enforceable or have consequences. Just like many HOA's have the ability fine. They lack the definition of what for. Hence why the "Fine schedule" was born...

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/12/2020 6:19 PM  
Sorry, still confused, Melissa.

My understanding is that this is enforced all the time - in many states and communities. Varying types of rules and structures, but enforced.

Can you help me understand why you think these restrictions are unenforceable?

MelissaP1
(Alabama)

Posts:9413


06/12/2020 6:28 PM  
Each state is different. Just because you have a restriction doesn't mean it's enforceable. What if it is a fine? How much is the fine? Well it may be cheaper or better for me to pay that fine for renting my property than not rent out the property at all. A fine is punitive. However, how does the fine factor into the HOA's budget for collecting? Taxable?

My question for you... How does a HOA actually enforce the restriction? Lip service?

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/12/2020 6:31 PM  
Ah, you’re being hypothetical, writ broadly, across all the states, and communities that apparently enforce rental restrictions?
MelissaP1
(Alabama)

Posts:9413


06/12/2020 9:26 PM  
Not hypothetical at all. What is the punishment for violating rental restriction? How and when is it enforced?

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/13/2020 5:50 AM  
OK ... I’m gonna give up on this one.

I made the point that hundreds, perhaps thousands of communities have rental restrictions, and are actively enforcing them.

You made the point that all of these are unenforceable.
MelissaP1
(Alabama)

Posts:9413


06/13/2020 8:02 AM  
You still are NOT listening George. The point is you can have the restrictions all you want in your HOA's documents. However, the State you live in may see otherwise. I can't tell because each state is different. Just know that California is one of the only states I know of that may have a state law on the books. Even it's kind of a thin line.

You still can not answer my question. How if it is restricted is it enforced? Does the HOA have to have a copy of every lease agreement? Is that how they monitor? If they find you are #11 but have a financial hardship, do you get a pass? What if you have rented out your place for years but never told anyone. Does the HOA have the right to retro-act? If your HOA can fine, is that fine significant enough to be punitive? It may be something can afford to pay. Plus the fines charged by the HOA how does that affect their budget? It's not income.

So to blanket statement like "HOA's limiting Rental" isn't a clear cut as one may think it is. The HOA doesn't own the property and thus doesn't necessarily have the right to control certain aspects of your property. Like it or not. It does have the right to control appearances of the property.

Former HOA President
GenoS
(Florida)

Posts:3867


06/13/2020 12:01 PM  
Posted By GeorgeS21 on 06/13/2020 5:50 AM
OK ... I’m gonna give up on this one.

I made the point that hundreds, perhaps thousands of communities have rental restrictions, and are actively enforcing them.

You made the point that all of these are unenforceable.

This is one of MelissaP1's signature issues. She's completely wrong, of course, but all the solid counterexamples in the world that show she's wrong just don't exist in her mind. It's like a conspiracy theory where the those peddling the thing cannot ever be wrong, by definition.
GeorgeS21
(Florida)

Posts:2816


06/13/2020 2:01 PM  
Yeah, I could sense the “property rights” tone - not an arguable point as there are thousands of rental restricted communities that do successfully enforce these restrictions.
MelissaP1
(Alabama)

Posts:9413


06/13/2020 2:59 PM  
Many HOA's also enforce fines but can't really collect them unless you do some questionable bookkeeping. Which is to apply one's dues to the fines. That way it looks like not paying dues. You can't lien for unpaid fines only unpaid dues.

Yet many HOA's and members still pay fines every day...

Former HOA President
MarkW18


Posts:1195


06/13/2020 3:09 PM  
Posted By MelissaP1 on 06/13/2020 2:59 PM
Many HOA's also enforce fines but can't really collect them unless you do some questionable bookkeeping. Which is to apply one's dues to the fines. That way it looks like not paying dues. You can't lien for unpaid fines only unpaid dues.

Yet many HOA's and members still pay fines every day...



Monies paid to HOA are mainly regulated by state codes, which you have no idea what they are because you never do any research, not even in the state in which you may or may not have been some association's president.

For the record, HOA's collect fines, report it as income and golly gee, don't paid income tax on the monies.
MelissaP1
(Alabama)

Posts:9413


06/13/2020 3:41 PM  
Darling Fines don't really have to be paid. What you going to do if I don't pay them? Can't fine me? Going to sue? Well I don't have to pay the lawsuit settlement. Can easily just sell my house and good luck finding me...

Former HOA President
MelissaP1
(Alabama)

Posts:9413


06/13/2020 3:43 PM  
I meant to say you can't file a lien against me for not paying my fines. A lawsuit doesn't mean I can't sell my house and leave. A HOA has no right to my social security # so be hard to make any kind of paycheck collections.

Plus how does one actually enforce Rental restrictions?

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/13/2020 4:05 PM  
Melissa,

You are making broad statements - for instance, I don't know if all states preclude liens for fines. I know Florida does - BUT, I would never state this as a broad fact.

The HOA can take you to court - we are getting to do this with one particularly egregious case right now. I WANT to do this, regardless whether we actually collect, so I can use the circumstance to answer my HOA owners who ask "What are ya gonna do?"

If you think it appropriate to sell your house and move to avoid a fine - and, you were taking a real hard A approach with me, I would move to get you sued earlier, rather than later.
MarkW18


Posts:1195


06/13/2020 5:28 PM  
Posted By MelissaP1 on 06/13/2020 3:41 PM
Darling Fines don't really have to be paid. What you going to do if I don't pay them? Can't fine me? Going to sue? Well I don't have to pay the lawsuit settlement. Can easily just sell my house and good luck finding me...



Darling, as an agent for the association, I can hold up the sell of your property until the fine the association levied, right or wrong, is satisfied!
LetA
(Nevada)

Posts:989


06/13/2020 6:01 PM  
Just a random thought here. What makes one covenant more or less enforceable over another? Lets say someone puts out a clawfoot bathtub with a transmission inside on their front lawn and calls it yard art. What makes the removal of that yard art more enforceable over rental restrictions?
MelissaP1
(Alabama)

Posts:9413


06/13/2020 8:34 PM  
The difference is a tub is an exterior violation. The restricting rental involves messing with someone's mortgage or ownership rights. You can own a piece of art and put it in the front yard. The HOA can say put in the backyard. Renting how do you stop someone from doing that?

Former HOA President
MarkW18


Posts:1195


06/13/2020 8:43 PM  
Posted By MelissaP1 on 06/13/2020 8:34 PM
The difference is a tub is an exterior violation. The restricting rental involves messing with someone's mortgage or ownership rights. You can own a piece of art and put it in the front yard. The HOA can say put in the backyard. Renting how do you stop someone from doing that?



If it's in the docs fine them, just like you would for the bathtub. It is called covenants, conditions and restrictions.
MelissaP1
(Alabama)

Posts:9413


06/13/2020 9:22 PM  
How much fine for a rental violation versus a tub art? Same rate? What if I choose to pay the fine? There are limits on how much one can fine before illegal. So why can not add that to rent I am charging?

seems to me if I am willing to pay the fines I can stay in rental violation.

Former HOA President
MarkW18


Posts:1195


06/13/2020 10:52 PM  
I've seen fines as high as $2000.00
MarkW18


Posts:1195


06/13/2020 10:54 PM  
Btw, they are not one size fine all fines. Fines can be adjusted for the severity of the violation. Cost of a trash can violation might be $25.00, cost of a AirBnB might be the nightly rental.
MelissaP1
(Alabama)

Posts:9413


06/14/2020 6:01 AM  
Is that legal? What does the state law say you can charge a fine for? Seems kind of random and personal to charge the different rates. The state has a say on what one charges as far as fines. Plus does airnb fall into rental restriction or use of property?

The HOA can say one must use their home as single home family use only. That isn't the same as rental or airnb use. This is to make sure you don't use the property as a Frat house or Professional business office. Remember the case where people were having "illegals" living in their garages? The HOA forced everyone to open up their garages to inspect what used for. Did not go over well but the HOA could make sure the use was compliant.

Sorry but rental limitations in HOA's isn't as easy as one thinks it is. Having the restriction doesn't mean can enforce it. If you do enforce it, how?

Former HOA President
TimM11


Posts:347


06/17/2020 1:40 PM  
I'm going to somewhat agree with Melissa on this one.

On the one hand, HOAs can certainly legally restrict rentals as long as they are doing so within the terms of their CC&Rs and any applicable laws (and FHA mortgage rules, if they apply).

On the other hand, practical enforcement of those restrictions will probably take a lot of work and may not even be possible. I have no idea how we would have done it when I was on the BOD of my HOA. The only way I can think of would have been to check mailing addresses of property owners, either from the HOA's own records or at the county, to identify who was living elsewhere. But that only suggested that a unit was being rented out; it wouldn't have proven it.
KerryL1
(California)

Posts:7333


06/17/2020 7:06 PM  
In our urban neighborhood near lots of recreational amenities & a convention center, we levy a $1,000 fine for short term rentals. A nearby condo $5,000. Evidence usually is ads or notes to the vacationer not to tell anyone on the premises that that they're paying rent. One such customer brought such a note to our GM. Another clue is when they call the security officer at the lobby desk to order room service --- really!

Say...what happened to NpB? And to Paul of NY? Hmmmmm.
MelissaP1
(Alabama)

Posts:9413


06/17/2020 7:22 PM  
Do they pay the fine? How long to collect? How and who collects? Is it in rules or fine schedule?

Former HOA President
TimM11


Posts:347


06/18/2020 8:01 AM  
We had a similar rule and fine on our books for short-term rentals as well (long-term were permitted). That said, we never had to enforce it while I was on the BOD, so I don't know how well it would have worked in practice.
KerryL1
(California)

Posts:7333


06/18/2020 8:11 AM  
Over three years we fined two owners. A landlord didn't know his renter was renting out part of his suit to short-term renters. We finded the Owner $1,000 and he was very apologetic & said (tho' not our concern) he'd not refund $1,000 of the tenant's deposit when the guy vacated.

The second didn't attend the hearing, didn't apologize but simply paid the fine.

The fine certainly is in our schedule of fines. And prohibited rentals of under 30 days certainly is in our rules.
NpB
(Arizona)

Posts:306


06/23/2020 12:35 PM  
Posted By KerryL1 on 06/17/2020 7:06 PM
In our urban neighborhood near lots of recreational amenities & a convention center, we levy a $1,000 fine for short term rentals. A nearby condo $5,000. Evidence usually is ads or notes to the vacationer not to tell anyone on the premises that that they're paying rent. One such customer brought such a note to our GM. Another clue is when they call the security officer at the lobby desk to order room service --- really!

Say...what happened to NpB? And to Paul of NY? Hmmmmm.





Still here. Thread went off topic.
MelissaP1
(Alabama)

Posts:9413


06/23/2020 3:22 PM  
How did it go off topic? Just asking if you have such restrictions how are they enforced? Simple as that.

Former HOA President
NpB
(Arizona)

Posts:306


06/24/2020 8:50 AM  
Posted By MelissaP1 on 06/23/2020 3:22 PM
How did it go off topic? Just asking if you have such restrictions how are they enforced? Simple as that.





Only restriction is minimum rental period of 30 days.
MelissaP1
(Alabama)

Posts:9413


06/24/2020 3:16 PM  
Still NOT an answer. I get the whole restrictions thing. Can write it backwards and forwards all day long and twice on Sunday. The point is: HOW do you ENFORCE the restriction???

Former HOA President
JohnC46
(South Carolina)

Posts:9577


06/24/2020 5:00 PM  
Our docs state no one can rent their home within 6 months of purchasing it and the minimum rental is for 6 months. We know of several cases where someone purchased a home and someone else moved in but the cases we know of were family members. Parent purchased and child moved in. In one case, a daughter purchased and her parents moved in. As long as no one has caused "trouble" (knock on wood), we never pursued the issue. If we had a "problem" person, we would pursue it with our attorney.
MarkW18


Posts:1195


06/24/2020 6:05 PM  
Posted By MelissaP1 on 06/24/2020 3:16 PM
Still NOT an answer. I get the whole restrictions thing. Can write it backwards and forwards all day long and twice on Sunday. The point is: HOW do you ENFORCE the restriction???



Easy! You fine them per your HOA fine schedule and if they don't pay, when the home goes on the market, I would prepare a demand for escrow and it is paid then. Unless the home is foreclosure, come hell or high water, the account will be settled. That's my job.
KerryL1
(California)

Posts:7333


06/24/2020 6:24 PM  
I already repaid to Melissa's question. Maybe she missed it....
GeorgeS21
(Florida)

Posts:2816


06/24/2020 6:27 PM  
Melissa,

Your continuing position on this makes no sense. Illogical. Not recognizing the various possible actions at HOA level. Not understanding legal actions?
MelissaP1
(Alabama)

Posts:9413


06/24/2020 6:35 PM  
I understand them completely. What asking is what do other HOA's do to enforce it? We know what Kerry's does. What do other HOA's do to actually enforce the restriction? Can't answer other than "We have a restriction" isn't action or doing a thing.

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/24/2020 7:35 PM  
Are you looking for a list of lawsuits nationwide?
MelissaP1
(Alabama)

Posts:9413


06/24/2020 7:49 PM  
Nope. Lawsuits aren't an option for an HOA to use against someone whom violates rental restrictions. Lawsuits are for those whom HOA's have enforced rental restrictions against with no right to do so.

Former HOA President
MelissaP1
(Alabama)

Posts:9413


06/24/2020 7:50 PM  
Nope. Lawsuits aren't an option for an HOA to use against someone whom violates rental restrictions. Lawsuits are for those whom HOA's have enforced rental restrictions against with no right to do so.

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/24/2020 8:09 PM  
Hmmm ... sounds funny.
MelissaP1
(Alabama)

Posts:9413


06/24/2020 8:38 PM  
Sounds like further thought than surface statements or wishful thinking.

Former HOA President
GeorgeS21
(Florida)

Posts:2816


06/24/2020 8:44 PM  
OK, Melissa, I think you are wrong.

My last on this topic.
MelissaP1
(Alabama)

Posts:9413


06/25/2020 4:46 AM  
What am I wrong about? Simply can't answer the question can you?

The question is: How does your HOA actually enforce rental restrictions? Just not by having those words in your documentation?

If you have 10 allowable rentals and #11 is renting, what do you do? Is there a hardship clause for #11? Is there fines? If #11 gets a hardship pass, what about #12 who doesn't?

My opinion is that since the HOA does NOT own your house, they can't restrict what you do with it as far as renting. Exterior issues or using as a "professional business" (Doctor's office example). The State you live in may have the same opinion on enforcing rental restrictions if push comes to shove.

So others tell me how your HOA would actually enforce it?

Former HOA President
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