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BillyH (Georgia)
Posts: 9
Posted:
We have a problem with rental companies advising tenants about by-laws and property rules. A lot of our owners live out of state and leave everything to rental companies. When rules are broken, they complain they didn't know. What can be done legally to control renter companies?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Leave the rental companies out of it for the most part except for letting them know there are rules and to tell the prospective tenant about them. The HOA rules you and I live by still apply to absentee owners. Which means that the HOA needs to contact the owner and tell them about the violations. The HOA holds the OWNER'S feet to the fire. Going to the rental companies just gives the owner an additional "buffer".
Contact the rental companies and tell them that the owner needs to be informed that their tenant has broken one of the rules. That the owner may receive a fine for the violation or notice. The owner is responsible for paying the dues and NOT the renter. So if you have a non-payment situation going on, you will lien or foreclose upon the owner and NOT worry about the tenant. It's a tenant/owner contract NOT a Tenant/HOA/Owner when it comes to rental.

Former HOA President
RogerB (Colorado)
Posts: 5,067
Posted:
Billy, your Board could set up guidelines with language approved by the HOA for an owner to provide in a lease agreement. This could require many items, including the requirement of the owner to provide all controlling documents to the renter. The lease agreement can state that the owner agrees to pay fines and other costs which would be involved if the leasee violates restrictions in the controlling documents. And that the renter shall reimburse the owner for such costs. Further, it may be possible to restict the percentage of units which may be leased.
HaroldS1 (Arizona)
Posts: 314
Posted:
Melissa - you're confused. Your first paragraph tells them to ignore the leasing agent and go directly to the owner. Your second paragraph tells them to go thru the leasing agent to the owner. Make up your mind.
Then you go into non-payment of dues which wasn't even brought up by Billy.
However, the correct advice is to deal with the owner. Period. That's who is signatory with the HOA. The HOA cannot fine or intimidate the renter or the leasing agent. This has been discussed several times here. Harold
HaroldS1 (Arizona)
Posts: 314
Posted:
Roger - you're confusing me too. What do you mean by "your Board could set up guidelines with language approved by the HOA....?"
And now you're having HOAs writing leases for the owner? "The renter shall reimburse the owner for such costs." Why is that an HOA's business? And why would an owner have to agree IN THE LEASE to pay fines and other costs if the leasee violates restrictions? He's already committed to paying fines by virture of his contract with the HOA. Seems like too much HOA busybody way beyond their scope. I don't think any board has the authority with or without member approval to meddle in an owner's lease agreement, because bottom line: It is the owner who is responsible to the HOA - no one else. And I don't think a board has the power to regulate rentals anyway without the required percent approval of the members. Harold

JM2 (Oregon)
Posts: 439
Posted:
Hi Billy:

I used to manage a condo, there was a rule that the owner had to provide the renter with the docs, rules, etc. - so I drafted a page that stated that the renter had received and reviewed a copy of the docs/rules/etc., that they had to sign and date and had to come back to us for the HOA's files. The page had to be filled out with each rental agreement. The docs also required the owner to give us the rental info.

Your docs may/may not require that there be certain things in the lease, such as:
Minimum term of lease
Any violation of the rules constitutes a default in the lease (and require that langauage in the lease)
Renter be given a copy of the rules
Renter contact info be given to the HOA (or a copy of the contract)...

And, there may be some other goodies in there, too. If you don't have some of this, consider the possibility of amending your docs to include this type of stuff.

When there was a violation, the letter was sent to the owner, with a copy to the renter and one to the rental manger, if we were aware of one.

Best of luck!

J. Patrick Moore, CMCA
MelissaP1 (Alabama)
Posts: 13,836
Posted:
I did say ignore the lease agent and go for the owner. However, most cases, the HOA does NOT have the correct information of contact for the owner. According to the contact for the owner it should technically be the address inside the HOA. As we know, owner's are out of town/state and don't live at that address. Any correspondence to that address will be caught by the renter who may or may not forward that mail to the owner.
In order to get the contact information, the HOA may need to contact the leasing agent. Although the leasing agent is involved only between the renter/owner. They do have contact information for both. So you must keep an open communication with the leasing agent but not do business with them. Your main goal is to contact the owner and give the owner the responsibility of informing their renter of the rules and issue the owner violations.
I mention the not paying assessments because that is really the ONLY thing that is enforceable legally in most states. Fines/late fees can NOT be the basis of a lien in most states. (NOT ALL). You can NOT place or foreclose on a lot based on violations. It must be non-payment of dues/special assessments or the RARE HOA paying work to be done on that residents for a violation refusing to clean/fix. (I.e. the HOA tells resident paint is wrong color, they don't change it... HOA repaints it right color... sends owner bill... owner doesn't pay... HOA liens for payment). Those are the ONLY 2 reasons the HOA can lien/foreclose. (in most states).So giving the owner violation/fines may work if they are willing to pay them.

Former HOA President

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