Maintenance Fees on Rentals

Started by MaureenM1 • 4 replies • 1358 views

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MaureenM1 (PA)
Posts: 344

Posted:

At a recent board meeting one of our board members suggested raising the maintenance fees on homeonwers who rent and charging a separate fee to the landlords when their tenants move out and we need to program the gates for new renters.

Does the Board have the authority to do this. Right now we pay 210, however, our board is going to lower the dues now that we took the development over from the Declarant (he raised them three years ago when he had the majority of votes). The fee was 190.

Can we lower for homeowners other than rentals? and keep the units who rent at 210? The Board members argument was that the renters do not take care of the property as the homeowners do and we will be constantly programming the gates and most rentals turn over every year.

any advice would be appreciated.

M

GlenL (Ohio)
Posts: 5,491

Posted:

IMO no, check your CC&R's as they spell out how assessments are set. Now if you set it as a rental fee (again if allowed) then it would probably fly but I would check with the HOA's attorney first to see if such fees are allowed. It is not up to the rental people to maintain the property it is the responsibility of the actual homeowners to maintain it.

Before you lower the assessments how well funded are your reserves?

Studies show that 5 out of 4 people have problems with fractions

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Simply put. No The HOA charges the Owners the equal amount. The HOA can NOT interfere with the owners contract. The HOA can NOT fine renters or kick them out. The HOA can ONLY hold the OWNERS feet to the ground. If your HOA doesn't have a fine schedule that makes it even more difficult. The renters do NOT pay the assessments (Except in Florida that has a rule in regards to behind in dues situations).

Focusing on the rental issue blinds you all to the real issues. That is focusing at the business at hand and NOT in the bush...Renters are in the bush...

Former HOA President

BradP (Kansas)
Posts: 2,640

Posted:

Quote:

Posted By MaureenM1 on 11/05/2012 11:29 AM
At a recent board meeting one of our board members suggested raising the maintenance fees on homeonwers who rent and charging a separate fee to the landlords when their tenants move out and we need to program the gates for new renters.

Does the Board have the authority to do this. Right now we pay 210, however, our board is going to lower the dues now that we took the development over from the Declarant (he raised them three years ago when he had the majority of votes). The fee was 190.

Can we lower for homeowners other than rentals? and keep the units who rent at 210? The Board members argument was that the renters do not take care of the property as the homeowners do and we will be constantly programming the gates and most rentals turn over every year.

any advice would be appreciated.

M

Maureen

As others have posted you have to assess all properties equally so no you can not create two classes. Let me ask this question, does it cost the board money to reprogram the gates? If so and if you documents allow I would suggest the board looks at a fee schedule for gate reprogramming, perhaps you are allowed one free repogramming per property every 24 months and each additional is X amount of dollars.

I would also caution against lowering dues, the hardest thing for a board to do is raise dues. You don't know what the future holds I would suggest strongly you keep dues at their current level and put excess into a reserve account.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Maureen

I agree with others in that lowering dues is a grand, but mistaken gesture. Best you keep the money and use it for improvements, stash it away for a rainy day, etc. You will play heck if you ever need to get it back. Do not be penny wise and dollar foolish.

Additionally it might well be possible to have transfer/registration, etc. fees payable say when one does rent a unit. Move in/move out fees, etc. so there is a way of getting money out of the "nasty" renter/rentee, just not the way you suggested.

Hope this helps.

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