DonellJ
Posts: 15
Posts: 15
Posted:
DECLARATION OF COVENANTS AND RESTRICTIONS AND PARTY FACILITIES
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Do rental restrictions have to be only in our
Started by DonellJ • 13 replies • 2146 views
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NpS (Pennsylvania)
Posts: 4,216
Posts: 4,216
Posted:
OUCH
Sikubali jukumu. Read all posts at your own risk.
PitA
Posts: 1,416
Posts: 1,416
Posted:
Rental restrictions applying to owned units MUST be in the Covenants and Restrictions.
DonellJ
Posts: 15
Posts: 15
Posted:
Thanks
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Donel,
I expect that this is a continuation of your previous thread.
To be honest, the Board or membership may adopt rental restrictions and place them within any governing document. However, per the various links provided later, a rental restriction is best defended by the Association if that restriction is within the CC&Rs. From my reading, it is likely that if the restriction is within any other document, it will likely be considered invalid by a court.
However, for a court to make any determination, someone will need to challenge the restriction by petitioning the court for a ruling. To do that, you need to consult a local attorney. I would suggest one versed in contract law or one who has won similar cases.
Here are the links:
No-Lease Restrictions on Condominium Owners a 2014 article on a legal blog
THE RIGHT TO RENT – THERE’S MORE TO KNOW THAN YOU THINK 2014 article
Rental Restrictions 2013 article
Can’t We All Play by the Same Rules?
Yes You Can Restrict Condominium Rentals but Beware Unintended Consequences
FL 718.110 (applicable to condominiums only):
(13) An amendment prohibiting unit owners from renting their units or altering the duration of the rental term or specifying or limiting the number of times unit owners are entitled to rent their units during a specified period applies only to unit owners who consent to the amendment and unit owners who acquire title to their units after the effective date of that amendment.
I expect that this is a continuation of your previous thread.
To be honest, the Board or membership may adopt rental restrictions and place them within any governing document. However, per the various links provided later, a rental restriction is best defended by the Association if that restriction is within the CC&Rs. From my reading, it is likely that if the restriction is within any other document, it will likely be considered invalid by a court.
However, for a court to make any determination, someone will need to challenge the restriction by petitioning the court for a ruling. To do that, you need to consult a local attorney. I would suggest one versed in contract law or one who has won similar cases.
Here are the links:
No-Lease Restrictions on Condominium Owners a 2014 article on a legal blog
THE RIGHT TO RENT – THERE’S MORE TO KNOW THAN YOU THINK 2014 article
Rental Restrictions 2013 article
Can’t We All Play by the Same Rules?
Yes You Can Restrict Condominium Rentals but Beware Unintended Consequences
FL 718.110 (applicable to condominiums only):
(13) An amendment prohibiting unit owners from renting their units or altering the duration of the rental term or specifying or limiting the number of times unit owners are entitled to rent their units during a specified period applies only to unit owners who consent to the amendment and unit owners who acquire title to their units after the effective date of that amendment.
BonnieG1 (Nebraska)
Posts: 1,186
Posts: 1,186
Posted:
Hmm interesting. I am replying to this so that I can save it for future reference. I was under the impression we could not limit rentals. Which at this time we can not but according to post on this site if we amend our documents (Master Deed and or BY-Laws) we should be able to restrict rentals.
We just amended many sections of our By-Law at our annual meeting in February and our members may be slightly burned out on amendment voting.
We just amended many sections of our By-Law at our annual meeting in February and our members may be slightly burned out on amendment voting.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Bonnie,
It must be in the Master Deed.
It must be in the Master Deed.
BonnieG1 (Nebraska)
Posts: 1,186
Posts: 1,186
Posted:
Quote:
Posted By TimB4 on 05/23/2016 10:52 AM
Bonnie,
It must be in the Master Deed.
Bonnie,
It must be in the Master Deed.
Thanks Tim. Sometime in the future we may try to amend the Master Deed to limit rentals. I have had more than one person tell me that we never used to be able to lease out our units. I don't know how many times I have said we have been allowed to do this from day one according to our Master Deed. A few years ago the Board (before I even moved here) must have told people units had to be owner occupied. I was even under that impression when I first moved into my unit.
I don't think it will be hard to get votes needed to amend our Master Deed to limit rentals. But as I mentioned in my earlier post, I think our members are burned out with all the voting done this year and the years before. This year we voted on re-electing me to the board and we voted on amendments to our By-Laws. In 2015 we voted to re-elect a member to the Board and also voted on some extra security measures such as cameras. The security measures were voted down. In 2014 In addition to re-electing people to the Board, we voted on some minor issues such as the temperature in the common areas. I was not President in 2014. I know I prefer to have very few items to vote on at the annual meeting in 2017. I hope we can just vote on re-electing or electing people to the Board. But as my late husband used to say "Time will tell.".
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
If you are in an age restricted community, you need to be careful with rentals.
Otherwise, worst case, you could lose your restriction status.
Otherwise, worst case, you could lose your restriction status.
BonnieG1 (Nebraska)
Posts: 1,186
Posts: 1,186
Posted:
Quote:
Posted By TimB4 on 05/23/2016 6:21 PM
If you are in an age restricted community, you need to be careful with rentals.
Otherwise, worst case, you could lose your restriction status.
If you are in an age restricted community, you need to be careful with rentals.
Otherwise, worst case, you could lose your restriction status.
How could we lose our age restriction status as long as all renters have to be 55+ and must follow all our rules and regulations current and future. This is spelled out in our Master Deed. We have also made a resolution requiring any lease agreement to have 3 specific clauses. One clause is taken word for word from our Master Deed.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Quote:
Posted By BonnieG1 on 05/23/2016 7:09 PM
Posted By TimB4 on 05/23/2016 6:21 PM
If you are in an age restricted community, you need to be careful with rentals.
Otherwise, worst case, you could lose your restriction status.
If you are in an age restricted community, you need to be careful with rentals.
Otherwise, worst case, you could lose your restriction status.
How could we lose our age restriction status as long as all renters have to be 55+ and must follow all our rules and regulations current and future. This is spelled out in our Master Deed. We have also made a resolution requiring any lease agreement to have 3 specific clauses. One clause is taken word for word from our Master Deed.
You wouldn't.
However, I didn't know that as it was not provided until now.
Based on this, I would say that you do have some rental restrictions already.
BonnieG1 (Nebraska)
Posts: 1,186
Posts: 1,186
Posted:
Quote:
Posted By TimB4 on 05/23/2016 7:20 PM
How could we lose our age restriction status as long as all renters have to be 55+ and must follow all our rules and regulations current and future. This is spelled out in our Master Deed. We have also made a resolution requiring any lease agreement to have 3 specific clauses. One clause is taken word for word from our Master Deed.
Posted By BonnieG1 on 05/23/2016 7:09 PM
Posted By TimB4 on 05/23/2016 6:21 PM
If you are in an age restricted community, you need to be careful with rentals.
Otherwise, worst case, you could lose your restriction status.
If you are in an age restricted community, you need to be careful with rentals.
Otherwise, worst case, you could lose your restriction status.
How could we lose our age restriction status as long as all renters have to be 55+ and must follow all our rules and regulations current and future. This is spelled out in our Master Deed. We have also made a resolution requiring any lease agreement to have 3 specific clauses. One clause is taken word for word from our Master Deed.
You wouldn't.
However, I didn't know that as it was not provided until now.
Based on this, I would say that you do have some rental restrictions already.
I guess we do have rental restriction. When I think of rental restrictions I think of restricting the number of units that can be leased.
JamesG11 (Florida)
Posts: 118
Posts: 118
Posted:
Damn good response, TimB4.
In FL, the law is fairly well-settled that amendments which restrict a condo owner from renting his/her unit can only be enforced against that unit owner if he/she either consented to the amendment (i.e., voted in its favor) OR the amendment's effective date preceded the purchase by that owner of his/her unit (i.e., the prospective owner was on either actual or constructive notice of those restrictions prior to closing).
It is also fairly well-settled that amendments restricting a unit owner's right to lease his/her unit must have been lawfully enacted as part of the Declaration of Condominium to be enforceable. I've known a few condo associations who tried an end run around the more restrictive Declaration amendment process and adopted leasing restriction amendments as part of their bylaws and/or rules, but that has always ended badly for them (and/or their insurance carrier)....
In FL, the law is fairly well-settled that amendments which restrict a condo owner from renting his/her unit can only be enforced against that unit owner if he/she either consented to the amendment (i.e., voted in its favor) OR the amendment's effective date preceded the purchase by that owner of his/her unit (i.e., the prospective owner was on either actual or constructive notice of those restrictions prior to closing).
It is also fairly well-settled that amendments restricting a unit owner's right to lease his/her unit must have been lawfully enacted as part of the Declaration of Condominium to be enforceable. I've known a few condo associations who tried an end run around the more restrictive Declaration amendment process and adopted leasing restriction amendments as part of their bylaws and/or rules, but that has always ended badly for them (and/or their insurance carrier)....
JamesG11 (Florida)
Posts: 118
Posts: 118
Posted:
You should obtain a legal opinion on that, BonnieG1.
In some states -- like my Florida -- such leasing restrictions are unenforceable against those who owned a unit before the amendment was enacted (unless that owner voted in favor of the amendment).
Florida also does not permit you to do an end run around the Declaration of Condominium amendment process in order to incorporate such restrictions.
I cannot speak to what the law in your state may be. A Board is always well-advised to consult with its attorney before undertaking an amendment -- and especially one as controversial as we're discussing in this thread.
In some states -- like my Florida -- such leasing restrictions are unenforceable against those who owned a unit before the amendment was enacted (unless that owner voted in favor of the amendment).
Florida also does not permit you to do an end run around the Declaration of Condominium amendment process in order to incorporate such restrictions.
I cannot speak to what the law in your state may be. A Board is always well-advised to consult with its attorney before undertaking an amendment -- and especially one as controversial as we're discussing in this thread.
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