PLEASE HELP !!!!! Leasing a UNIT

Started by TinaT3 • 12 replies • 1576 views

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TinaT3 (Florida)
Posts: 1

Posted:

Hello I am new to the group but I am having some issues with my association.

There is a official/unofficial rule is that you cannot rent out your condo,(owner occupied only in 1 building out of 4 that can rent) everyone in the building renting out their condo. I own my condo outright with no mortgage. I pay my association fees 3 months in advance and recently I rented out my unit and the association saw then renter moving in. They tried to call the police but the police could not do anything because she had a legal document, the lease. They threatened me that they will tow her car that is in MY authorized parking after I gave her the okay to do so. I told them that I want to have this addressed on in the next meeting to have all owners be able to rent out officially other than doing it inconspicuously. Of course I did a background employment criminal and credit which panned out as optimal. I have a vested interest to make sure that I rent to quality renters because I own the unit outright. Also the association rents out 7 units in the building and they believe they can per the FL statues. I read the statues and I did not read anything in regards to association being able to rent out a unit especially it is "supposed to be owner occupied". Seems to me that they follow there laws inconsistently.

PLEASE HELP
I want my renter to stay,she a valued renter.

GlenL (Ohio)
Posts: 5,491

Posted:

There is a official/unofficial rule is that you cannot rent out your condo,(owner occupied only in 1 building out of 4 that can rent) everyone in the building renting out their condo.
If it is a covenant, either original to the CC&Rs that the declarant filed or a proper amendment to them, i.e. signed off on by the required majority of homeowners and properly filed, you are in violation and subject to fines for violating it. If it is a "rule", that in my non-legal opinion is not enforceable and if they persist you may need to have an attorney write them a cease and desist letter and threaten them with all kinds of legal mayhem.

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

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Because they called the police, its obvious the person doing this is nuts. I would simply hire a lawyer to write a cease and desist letter for $50. The lawyer doesn't need the whole story, just a quick letter on his letterhead.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I know many don't agree with my opinion of the HOA can not set rental limits. (Except California recently). You could challenge them in court even if it is in the rules. A HOA does NOT own the property and can not interfere with the contracts of the owner. Now a HOA can require a copy of the rental agreement and background checks but they really can't stop you from renting.

I would get a lawyer familiar with contractual laws. (Not a real estate attorney). They should be able to help you draft a letter to the HOA informing them they can't restrict rental limits. Plus next time anyone of them does anything to your renter, that individual can be held for harrassment and interfering. It won't be an HOA but as an individual when they take harrassing measures. That may slow them down a bit.

Former HOA President

JohnB26 (South Carolina)
Posts: 1,569

Posted:

? HOA can't set rental limits ? DEBATEABLE

HOWEVER

The recorded deed restrictions CAN restrict or even BAN RENTALS

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Your CC&R's can state many rules/laws but can't supercede state/local/federal laws. An example is that your CC&R's may state something like "No parking on the street" but your streets are PUBLIC and maintained by the city. The city allows parking on the street. No matter how much your "HOA" calls the police or tow trucks, if the city allows parking on the streets it allows parking on the streets until your HOA goes to the city and creates an ordinance with them.

It is the same with rental restrictions or bans on renting. It may be in your documents but if push came to shove, they can not be enforced. (Except in California and only after 2011 with no grandfathering). So even though your bylaws or CC&R's have those rules in them, a good lawyer could indeed fight it and win. A HOA can NOT restrict rentals because they do NOT own the property. They can put restrictions on outdoor appearances and lawncare. They can not interfere with owner's contracts no matter how good intentioned those rules are. Only entities that can put rental restrictions on the property is the mortgage companies when they loan the money to purchase the home.

Former HOA President

GlenL (Ohio)
Posts: 5,491

Posted:

Melissa where did you get your legal degree???? You spout things like they are the Gospel when they simply aren't. About the only things you can't put in an HOA contract are restrictions on race, gender or religion; everything else is negotiable and can be done if done correctly even age restrictions. The key point is it must be done correctly which in the case of the OP it doesn't sound like it was.

BTW: I'm not an attorney nor do I work in the legal profession.

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

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I am not a lawyer nor represent myself as one. I just know that a HOA can not restrict rental restrictions because the state doesn't allow it. Since HOA rules can not supercede state laws, it would lend to reason that they can not be enforced by the HOA. There is a caveat statement in the CC&R's stating that they can not supercede any local, county, state, or federal laws.

Maybe a better example would have been satellite dishes. A HOA can no longer prevent owners from having satellite dishes just where they are displayed.

Former HOA President

LauraR5 (Tennessee)
Posts: 220

Posted:

Oh, the eternal rental debate...

Lots of communities make laws attempting to restrict rentals. The reality is, those rules most likely wouldn't stand up in court. My property manager and I just had this discussion recently.

If there is something in your CC&Rs banning renting your unit, then I'd talk to an attorney. If it's an unspoken rule, I'd talk to the board first. Surely you can reach a compromise on it.

Obviously we don't want a community that's supposed to be owner-occupied to be overrun with rentals (although I'd argue that if the association has rental units that's not the intent here), but you do have rights as a property owner, as well.

GlenL (Ohio)
Posts: 5,491

Posted:

I just know that a HOA can not restrict rental restrictions because the state doesn't allow it. Since HOA rules can not supercede state laws, it would lend to reason that they can not be enforced by the HOA.

I've never seen such a restriction outside of CA. Could you please point out where this is found in for instance Alabama's code since I'm sure that is what you are most familiar with.

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

MelissaP1 (Alabama)
Posts: 13,836

Posted:

There is only one state and that is California. It just went into effect in 2011/12 and only effects homes purchased after that time frame. All other states leave it up to the mortgage companies to limit rentals. Just because we want to enforce rental restrictions doesn't mean it can happen no matter how much we wish it.

Former HOA President

CarolR11 (Colorado)
Posts: 2,563

Posted:

Say, Tina, just what do your own governing docs say about rentals? Your use of "unofficial" rule means that there is nothing in your documents about rental restrictions; so, you may rent out your unit. If there is an official written restrictions, can you share the wording with us?

I'm not an attorney either, but if the parking space is deeded to you, I do not think the Board can have your renter's car towed away. Here in Cali at least, HOA's cannot block access to deeded parking spots.

LauraR5 (Tennessee)
Posts: 220

Posted:

Ditto to what Carol said on the parking space.

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