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LucasW (Florida)
Posts: 3
Posted:
We have a condo in Florida where there seems to be a conflict of interest. There is an inhouse management company that rents the unit when we are not using it. The inhouse manager is also a unit owner, and on the HOA board. So pretty much, when anyone complains, their unit just doesn't get rented. To me this is a conflict of interest, but is it legal? I'm assuming so unless the bylaws state it and they aren't specific as to that area. Of course, not much of a chance to get it changed at this point. But thought I would ask.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
The MC being an owner does qualify them to be on the HOA board. That is the only requirement to be an HOA member. However, it is confusing on the relationship as the MC or HOA should be in the business of renting out units. A HOA should not interefere with the contracts of an owner. So this is not usual for a HOA to do.

This sounds like a time share type arrangement. Is the MC the time share manager and Not theHOA management? Not sure where that line is drawn.

Former HOA President
LucasW (Florida)
Posts: 3
Posted:
Thank you for the quick reply. No, it's not a time share. Some people live in their units full time, some people just vacation there and allow them to be rented as they have full time residences elsewhere. It's a beachfront.
I'm assuming the manager\owner somehow got themselves hired as the renting entity by the HOA at some point in the past, although why people would do that is beyond me. Or course it could be changed in the bylaws but the board is currently pretty much packed with friends. If you question a lot, your rentals go away and your unit sits empty, and you still pay the association dues, which has caused folks to move, and set the tone for the complex. Of course the managers unit is always rented first and booked solid year round. They live off property. So they make income from their unit renting, a percentage commission on every unit they rent, control the HOA, and so forth.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Lucas

You may not like the way they run the place but it seems they are doing it legally.

Make nice with the manager. Nice bottle of wine a few times a year with a thank you note. Makes for you getting nice rent payments and that was your original idea was it not?

LucasW (Florida)
Posts: 3
Posted:
Thanks again. I was just thinking since an HOA is filed as not for profit and specifically says you can't disperse funds to the board members, that would prevent a board from hiring themselves to a paid position.

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