Tennis Instructor Use of Tennis Courts

Started by JohnW18 • 16 replies • 5624 views

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JohnW18 (Georgia)
Posts: 18

Posted:

We have a problem. How can we stop a professional tennis coach from using our courts for publicly advertised camps.

A local Tennis Instructor has been using our courts for a number of years. He started by coaching our subdivision teams and giving private lessons. We had no objection to this. We want to have an active tennis community and this was a perk for them.

He branched out and has been advertising to the public for tennis camps to be held at our courts. This has been going on for a few years. He is on the deed of one of our homes, but that property has been rented out so he is not a resident. Or covenants plainly state that when you rent your house you assign all rights to the amenities to the renters.

We got him to sign a contract calling for fees to be paid when he gives group lessons to non-residents. We excluded neighborhood teams and private lessons for homeowners because we did not want to increase costs for them.

He is now calling all his lessons private lessons by bringing in people to be instructors for each court in use. They are instructors in name only. He is apparently organizing these lessons as part of his ongoing business.

We want to terminate the agreement and force him to stop using the courts for anything but team and private lessons.

Does any one have experience with this?

Any suggestions?

We are in GA.

Thanks!

JohnB26 (South Carolina)
Posts: 1,569

Posted:

give notice of intent to end/cancel/void improperly signed/granted 'contract'

then

have trespasser(s) arrested

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By JohnW18 on 03/05/2013 11:45 AM
We have a problem. How can we stop a professional tennis coach from using our courts for publicly advertised camps.

A local Tennis Instructor has been using our courts for a number of years. He started by coaching our subdivision teams and giving private lessons. We had no objection to this. We want to have an active tennis community and this was a perk for them.

He branched out and has been advertising to the public for tennis camps to be held at our courts. This has been going on for a few years. He is on the deed of one of our homes, but that property has been rented out so he is not a resident. Or covenants plainly state that when you rent your house you assign all rights to the amenities to the renters.

We got him to sign a contract calling for fees to be paid when he gives group lessons to non-residents. We excluded neighborhood teams and private lessons for homeowners because we did not want to increase costs for them.

He is now calling all his lessons private lessons by bringing in people to be instructors for each court in use. They are instructors in name only. He is apparently organizing these lessons as part of his ongoing business.

We want to terminate the agreement and force him to stop using the courts for anything but team and private lessons.

Does any one have experience with this?

Any suggestions?

We are in GA.

Thanks!

I'd still consider the tennis instructor as the primary HOA "customer" as he's responsible for his dues. A better agreement would be a straight lease of the tennis courts with the HOA receiving the proceeds IF the community endorses such agreements. That said, I could not support using HOA facilities for private business usage w/out benefits for the homeowners in terms of free access.

JohnB26 (South Carolina)
Posts: 1,569

Posted:

if the hoa 'rents out' any facility at a profit

then

it is no longer a 'not-for-profit'

and

is then governed by 'for profit' corporate law

INCLUDING

irs implications re; federal taxes

MelissaP1 (Alabama)
Posts: 13,836

Posted:

No John it does not change it from a non profit. It just means the money it makes from the lease is taxable. The money would go back into the use and operation of the court. In this case the HOA may request this vendor to carry insurance on his business. The HOA should set the rate enough to offset taxes, electricity, and general use of the facility. So do not pick a number out of the blue. Make it make sense even if it is only $50 a month.

Former HOA President

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By JohnB26 on 03/05/2013 1:14 PM
if the hoa 'rents out' any facility at a profit

then

it is no longer a 'not-for-profit'

and

is then governed by 'for profit' corporate law

INCLUDING

irs implications re; federal taxes

John, John, John, John, John,

Non-profits can make all kinds of profits. Ever been to a Salvation Army Thrift Store?

The main difference between business corporations and non-profits is that the latter has no shares, no shareholders, and no distribution of profits or dividends. In a business corporation, profits get paid back to the investors; in a non-profit any profits remain with the corporation.

You are right that there could be tax implications but that is a result of an HOA having income from a source other than assessments.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

I'd be waaaay more worried about an injury and being named in a lawsuit. Your insurance would not cover you if you were providing commercial rentals and were not buying the proper insurance.

Your basically going without insurance right now if someone is injured.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By SteveM9 on 03/05/2013 4:16 PM
I'd be waaaay more worried about an injury and being named in a lawsuit. Your insurance would not cover you if you were providing commercial rentals and were not buying the proper insurance.

Your basically going without insurance right now if someone is injured.

Jon is correct. There are many issues with the arrangements you all have with this instructor that need to be addressed, the first one being liability insurance.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

OOPS...Steve is correct.......

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

And if the tennis instructor says he will get the players to sign a waiver, dont be gullible. These so called waivers, dont hold up in court. You will still be liable.

Snip: Accordingly to a 2010 study, the average foot injury award was $703,703. Thirteen percent of foot injury awards were in excess of $1 million.

JohnW18 (Georgia)
Posts: 18

Posted:

Thank you to everyone.

Our attorney advises that we'd have to get a judgement against the instructor before we can have him arrested for trespassing. Otherwise, if the instructor is teaching a resident then that resident can tell the police the instructor is his guest and the police will do nothing.

We are aware of the implications of charging for use of the courts. Our Treasurer is a CPA working with non-profits and not-for-profits, and she has advised us this will not jeopardize our tax status. Also, there will be no tax liability unless income exceeds expenses.

We have structured the agreement so that there is no impact on any homeowners taking lessons.

The instructor has provided an insurance cert with us named as added insured. In fact, we are reconcidering termination becaseu having the contrct has done this much for us.

We are asking for waivers, but are under no illusion that this will protect us. It does help us track who's using the courts, and sets an expectation that the HOA will not pay.

Finally, since this was posted our attorney has advised us to modify the court usage rule (we can do this per the convenants) to tighten up when, how and by who the courts can be used. We may do this before addressing the termination issue.

Does anyone have any use rules that they have come up with to address a similar issue?

Thanks again, this site is a wonderful resource.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

John

I would think Tennis Court Rules of Usage could be done via the BOD alone under Rules and Regulations thus not needing a covenant change that will require others to vote on.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Request a copy of the actual policy to see if the coverage is sufficient.

You may have an issue if it goes to court and you are a named insured, but never received any consideration (rent) for letting him use the courts. You should at least charge him $1 to make it an actual rental.

DavidA9 (Texas)
Posts: 2

Posted:

If there isn’t language in your CCRs regarding use of common properties for non- HOA business, I would have the board draft an amendment and place it in front the homeowners as quickly as possible. We have an arrangement with several tennis coaches in our HOA. Basically they may use our facilities at no cost, but can only teach residents. They must seek permission from the BoD each year and provide proof of liability insurance. Non-residents are prohibited from accessing the courts for lessons.

TimB4 (Tennessee)
Posts: 21,059

Posted:

OLD THREAD.

REACTIVATED FOR PURPOSE OF POSTING SPAM.

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