Due Process and Renters

Started by MikeS1 • 5 replies • 1732 views

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MikeS1
Posts: 668

Posted:

We have a few renters that are not complying with the CCR's and we typically are using Due Process to correct these problems. The PM sends out one letter to both the absentee owner and a copy to the tenant. The letter details the problem and will detail that exact language taken from our docs; (basically it's a nicely worded Cease and Desist Letter). Then if the problem perists after a specific period of time, then a hearing letter is sent out to both the renter. My Question is this......Should the hearing letter actually be summoning the ansentee owner or the renter to the Hearing?

MartyD (Florida)
Posts: 43

Posted:

Mike,

Never deal with the renter directly. Always, Always go straight to the absentee Owner with your concerns.
Out of sight, Out of Mind...these absentee owners need to be kept in the loop of all issues dealing with their property. Not properly screening rental applicants is a big problem in some organizations. A simple check of where they lived before and talking with the previous landlord would eliminate a lot of headaches for HOA'S and Absentee Owners.

Hold the Absentee Owner responsible for all of the tenant issues...PERIOD!

MistyB1 (Texas)
Posts: 10

Posted:

Mike, The owner should definitely be summoned also. It is his property and he is altimately responsible for his tenants. Misty

MikeS1
Posts: 668

Posted:

Marty - Thanks for the response - That was my gut feeling.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

The HOA's contract is with the owner. The owner's contract is with the Renter. Hence, the HOA is responsible for sending the owner notification and issuing violations. The owner in turn, is responsible for making sure the renter is aware of the HOA rules and abides by them. The HOA can not force the rules onto a renter.
Please keep in mind, that Tenant laws are strong. It can take 6 months to over a year for tenants to be removed from a property. The owner's hands may be tied legally on how to get a bad tenant out. My renter didn't pay rent for 5 months and it took 3 months to kick them out legally. Had to have the Sherriff's department come out. I even put the house up for sale while the tenants were still in the house to get a hint to leave!!!
Just keep the owner informed. The HOA then can't do anything unless the dues aren't being paid anyways. Renter's don't pay the dues, owner's do. So your in luck if the owner isn't paying dues. Makes it easier to lien or foreclose. The only 2 options a HOA has.

Former HOA President

CharlesW1 (Georgia)
Posts: 826

Posted:

Quote:

Posted By MartyD on 03/21/2007 4:47 AM
Mike,

Never deal with the renter directly. Always, Always go straight to the absentee Owner with your concerns.
Out of sight, Out of Mind...these absentee owners need to be kept in the loop of all issues dealing with their property. Not properly screening rental applicants is a big problem in some organizations. A simple check of where they lived before and talking with the previous landlord would eliminate a lot of headaches for HOA'S and Absentee Owners.

Hold the Absentee Owner responsible for all of the tenant issues...PERIOD!

MikeS1,

The board members of our HOA, recently spent the day discussing this very same issue, with our PM, Portfolio manager and our collections attorney.

We read and reviewed the letters, our (PM) mails to the delinquent homeowners (landlord) and when. The first letter simple states that the account in the amount of such and such is past due. And ask for payment to be paid in full by such and such date, and advice them that they will be accountable for any late fees, interest and any other additional charges.

If payment isn’t received in full, another letter is mailed to the delinquent homeowner, this letter is a little more stern, notifying them that the account will be turned over to the collections attorney, (provide name, address, and phone number) and a lien will be filed on this account. A $75.00 charge will be added to your account if this account isn’t paid in full, to prevent such from taking place please submit the total amount shown in full by (allowed time)

Then “if” payment isn’t received then they should turn it over to the collections attorney. Our collections attorney charges $75.00(lien) plus any attorney fee will be added to the account and reimbursed once the account is settled, but the association pays this expense up front. It stinks, but “it takes money to make money”

Hopefully you collect on these delinquent assessments before the lien expires (four years). Keep this in mind for the older accounts. It’s always good to have this extra coverage, just in case, (foreclose, bankruptcy, etc)
I would also suggest if any of these accounts are near expiration, to look into changing your collections procedure, apparently it’s not working.

Best of luck

Chuck W.

Charles E. Wafer Jr.

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