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Subject: limiting the number of rentals
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(North Carolina)


07/13/2006 5:27 AM  
My single family development of 93 homes is beginning to discuss the limiting of the number of properties that can be rental units at any one time. I know this can be accomplished. I am wondering if others have considered this and your experiences. We currently have about 10% being rented. The number is creeping up.


07/13/2006 7:08 AM  
We have thought about limiting the number of rentals in our neighborhood but it hasn't gone any further than this. We have a number of rentals but do not have a problem with the owners or renters, you cannot tell when driving through the neighborhood if a house is rented or owner occupied. If there is an issue with a violation, we send a letter like everyone else, which goes to the owner and they resolve the problem. On another note, we have had a number of renters buy homes in our neighborhood since the liked living here so well.


07/13/2006 6:36 PM  
Search this forum for the word rentals and you'll find some great discussion on this topic. (Search box in the upper right of the forum)

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07/21/2006 6:06 AM  

My HOA has been discussing this for more than a year now. Our previous management company told it that it would be difficult and that it would be too expensive. Well, we asked our new management company to provide us with the limitations and possible legal reamifications of taking such actions. They did, the Board voted and we are now going to have our attorney's office complete an ammendment for the Limitation of Renters.

We currently have about 18% renters and most of them are causing property damage, creating disturbances, encouraging undesirables into the community. This is unfortunate becsue not all renters cause problems. Nevertheless, we are going forward. All current rental/lease agreements will be grandfathered in. We must be provided a copy of all rental agreements and will be reviewed during the last quarter of the lease. If there have been too many problems (which the owner is aware of because all notices sent to the resident are sent to the owner as well, the lease will not be approved for renewal. The aim is to have no more than 5-10% rentals at any given time. During that time, owners may not use their property as rentals. They sell but they will not be allowed to rent.

This ammendment will also allow us to collect assessments from the renter if the homeowner is delinquent. Right now we have a property that has been used as a rental. The account is delinquent more than $4k and last night in my walking the community, I learned that the renters have skipped out.

The ability to limit renters will be beneficial to our community in more ways thatn one. Good luck to you and your community!

~ ValerieS


08/24/2006 9:59 AM  
I have made inquiries to the Maryland Homeowners Association out of concern of our Private Community having too many renters. I was advised in our state that once a community (HOA)has 30% or more renters, that mortgage lenders may no longer be required to write mortgages. We have 171 units of which 14 are renters. We plan to limit further renting by homeowners at some point.


08/24/2006 10:19 AM  
I too would be interested in limiting the number of rental properties in my community.
You haven’t posted anything about your progress in a while. How is it coming along? Did you get the amendment established in your CC&Rs?

I’ve been following your post. I’m anxious to read what other are doing or have done. Isn’t there laws established to protect members of an HOA from homeowners that do rent their home out for profitable dollars?
I hope all is well with you.

Chuck W.

Charles E. Wafer Jr.


08/24/2006 11:06 AM  
Valerie said "This ammendment will also allow us to collect assessments from the renter if the homeowner is delinquent." Theoretically they are probably already paying the assessment since I'm sure the owner has that cost built into the rent. I am curious as to how you could enforce this requirement. The renter is not a party to the contract with your HOA. What recourse would you have if they also refused to pay? Harold


08/24/2006 12:51 PM  
Valerie C:

This is one of the two biggest issues facing my community right now. We have a limit and that limit was breached a long time before the owner Board ever took over.

If you want to establish a rental cap, make sure to amend the docs properly but also to have a team in place to enforce these rules. These situations can get extremely ugly and volatile, both between the Board and the owners (those wanting to rent and those opposed to renters).

I hope this helps,
(North Carolina)


08/24/2006 1:40 PM  
Thanks for the info. I was wondering what state you were in?
(North Carolina)


08/24/2006 1:42 PM  
As my committee has done some research, we have learned that most of the ramifications of obtaining prime mortgage rates through Fannie Mae or Freddie Mac was only applicable to condo developments, not single family units. I am in North Carolina. Can anyone comment on this?


08/24/2006 2:57 PM  
Me? Im in Florida.
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Forums > Homeowner Association > HOA Discussions > limiting the number of rentals

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