Limiting Rentals

Started by JohnC46 • 7 replies • 2086 views

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JohnC46 (South Carolina)
Posts: 14,265

Posted:

While this issue has been discussed I think it is important/relevant to be discussed some more.

1. Our covenants say one cannot rent their unit (single home HOA) within 6 months of purchasing it.

2. We have two homes that were bought by people and their adult age kids moved in from the get go. They are not counted as rentals as their are no rental agreements.

While we do not have rental issues (FHA, etc.) how can rentals be limited/controlled to eliminate any issues?

Thanks

MelissaP1 (Alabama)
Posts: 13,836

Posted:

California is one of the only states to have addressed this issue recently. That state has a new law that does allow HOA's to restrict renting after a certain date this year. Interesting rule and hope someone from California can post it. May help everyone's HOA start getting similar laws in their states.

As far as your situation...the true owners are still responsible. All communication and violation notices go to the address. There may be no rental agreement but there are still owners who have people in their homes responible to obey the rules any other tenant must follow. Treat it like rental and go for the onwers.

Former HOA President

LarryB13 (Arizona)
Posts: 4,099

Posted:

If I recall correctly, you are working with your developer to amend the CC&R's before turnover to the owners.

First, it sounds like you need to better define "rental." Maybe it should mean the occupancy of a home by anyone other than the person named on the deed.

You might want to require association approval for all rentals, require that the renters pay assessments directly to the association, and have the renters agree to be co-responsible with the owner for all violations while they are in possession of the property.

You could try limiting the number or percentages of rental units, but I would recommend some sort of annual lottery for the right to rent out a unit.

You might also consider suspending voting rights of non-occupant owners.

You also ought to give yourselves the authority to evict a renter for non-compliance with the rental rules.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By LarryB13 on 06/29/2012 7:49 PM
If I recall correctly, you are working with your developer to amend the CC&R's before turnover to the owners.

First, it sounds like you need to better define "rental." Maybe it should mean the occupancy of a home by anyone other than the person named on the deed.

You might want to require association approval for all rentals, require that the renters pay assessments directly to the association, and have the renters agree to be co-responsible with the owner for all violations while they are in possession of the property.

You could try limiting the number or percentages of rental units, but I would recommend some sort of annual lottery for the right to rent out a unit.

You might also consider suspending voting rights of non-occupant owners.

You also ought to give yourselves the authority to evict a renter for non-compliance with the rental rules.

Larry

Thanks.

Building a list for dicussion.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Larry

Thanks.

Building a list for dicussion.

DaveD3 (Michigan)
Posts: 796

Posted:

Larry's response is perfect!
Define what is meant by a rental. Defining it as occupancy by someone other than the owner of record is a great place to start.

Otherwise, what's to define a rental? Oh, we bought another house and we're just letting _____ live in our old one for a little while but they're not paying us *wink wink* Is that a rental or not? I would move to say that it is as it is occupied by someone other than the owner of record as listed with the county register of deeds

EdmundS1 (North Carolina)
Posts: 45

Posted:

Are the parents living there too?

In any case I don't see a problem since they are "family" (related by blood),rental
in not an issue here.

They may be in violation of single-family occupany laws but that is an issue for the zoning authority of the town/village/city in which you live, not the HOA. Those laws are based on other things then "Blood Relatives" like number of people per bedroom (3 bedrooms, 2 people per bedroom = 6 people maximum occupancy), number of kitchens, etc.

Is the HOA part of a community that considers itself "55 and older". If so then at least one person living there needs to be over 55, but there is an out.....To keep the 55 and over label 80% of the homes have to have one resident older then 55, so they can be part of the 20%.

Good Luck,

Ed
Greensboro, NC

JohnC46 (South Carolina)
Posts: 14,265

Posted:

All

I posted an article about rentals under another topic. Is an interesting read. Rentals are a growing concern. There are pros and cons. Would you rather have a unit being rented and dues up to date or a resident owner not paying their dues?

We do not have a rental problem nor do I expect one. One think I was saying for general information is that two of our homes are occupied by graduate school attending, adult children of the owners. The owners do not live here nor is there any rental agreement.

Again, we do not view this as an issue.

One of the main reasons I purchased a home in this HOA (all standalone homes) is we have little to no amenities and amenities are often the source of most issues. As we have no pool there are no pool issues like are they an owner, renter, guest, trespassers, etc. Did they bring glsss to the pool......LOL

Also as we are standalone homes and no common gathering places (pools, clubhouse, walking paths, etc.) we rarely have any interaction except for a friendly wave, etc. A bit off track, but it does play a role.

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