Association Charges for Rental Property

Is it possible for an association to have "surcharges" for a rental unit?

How would an HOA's board justify the surcharge?

I'd say if an HOA could, it would be taxable income, yes?

I'm curious why you ask, John46--I believe you've mentioned a few times that your HOA only has three rentals in it.

Jeanne

We do not have a rental issue nor fees.

I not against an association charging a few/fair fees so I was more asking to throw out food for thought and discussion.

I know one HOA that has a 1/4% sales transfer fee. Seems to me like a reasonable fee to me.

Our condo assn. doesn't do it, but Florida Condo Law does allow for a transfer fee, as well as lease approval by the association, as long as it is authorized in the declaration or bylaws.

FS 718.116(4) If the association is authorized by the declaration or bylaws to approve or disapprove a proposed lease of a unit, the grounds for disapproval may include, but are not limited to, a unit owner being delinquent in the payment of an assessment at the time approval is sought.

FS 718.112(2)(I) Transfer fees.—No charge shall be made by the association or any body thereof in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless the association is required to approve such transfer and a fee for such approval is provided for in the declaration, articles, or bylaws. Any such fee may be preset, but in no event may such fee exceed $100 per applicant other than husband/wife or parent/dependent child, which are considered one applicant. However, if the lease or sublease is a renewal of a lease or sublease with the same lessee or sublessee, no charge shall be made. The foregoing notwithstanding, an association may, if the authority to do so appears in the declaration or bylaws, require that a prospective lessee place a security deposit, in an amount not to exceed the equivalent of 1 month’s rent, into an escrow account maintained by the association. The security deposit shall protect against damages to the common elements or association property. Payment of interest, claims against the deposit, refunds, and disputes under this paragraph shall be handled in the same fashion as provided in part II of chapter 83.

I recall reading about a high-rise condo in Portland, Oregon, that had a move-in/move-out fee of something like $1,000. Ostensibly, this was offset the cost to repair damage caused by movers and do-it-yourselfers.

Let me clarify. NO I do not believe a HOA should charge any owner for renting out their home. The HOA should NOT be involved with any rental agreements with the owner. The HOA is a third party and not part of the deal between owner/tenant.

However, as far as having certain paperwork fees or damage deposits that may be different. It costs money to produce copies of paperwork. That cost should be deferred somehow. However, that cost should be going to the OWNER and not the renter as the renter has no interest in the HOA. The owners may request a copy to give to their renter but renters are not members of the HOA. The owner should have in their rental agreement that their tenant is to follow those rules of the HOA or they can cancel the lease. Which most people with rental property overlook to do in their off the shelf agreements.

Each HOA/condo is different. So I can see a need for maybe a move-in damage fee/deposit. However, it should be standard across the board for both owner/renter. Who pays for it may be up for debate. There are those situations with places that share hallways, elevators, lobbies, or other areas where moving can cause damage. It's just not toward renters but anyone moving in or out of that building.

That charge for sending letters to both the tenant and owner was rendundant and unnecessary. Letters and communications should go to the one address and that is the HOA's address of the owner. The tenant lives there so they will see it. If they do not forward it to the owner then that is their issues NOT the HOA's. A "Courtesy" letter may be sent to the owner if their outside address is known but not necessarily needs to be certified. The certified goes to the address on file in the HOA.

I've found some people who have been upset about not getting notices about impending liens/foreclosures aren't aware of the process. If you put a lien/foreclosure that takes PUBLIC notification and is printed in a news source. The local newspaper in their legal sections of the classifieds will have them. The law/court will consider the fact that it was printed in a PUBLIC source as enough proper notification. It is similar to how some people can get divorced if they can't find the other party. As long as the notice is put in the paper/public resource several times, it's considered notification.

So it's always good to check the newspaper when it comes out. It has helped me keep up with some homes that were being foreclosed on that we were unaware of. Able to get in our lien before that happened.