Owners circumventing rental rules

Started by LenF1 • 11 replies • 970 views

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LenF1 (Florida)
Posts: 2

Posted:

I live in an association in Florida. we have rules on rentals (minimum 30 days) and the HOA must receive a $100 transfer fees.
Many people are circumventing the rules by telling the HOA they are not renting their unit but allowing a relative to use it. They then place the undisclosed renter on the gate access list to gain entrance.
The loss of the transfer fee is the least of the problem. There are liability issues and there is the problem of the HOA not ever knowing who are using their facilities.
My question is: Can the HOA ask the owner to sign a affidavit to the fact that they are allowing use of their residence to a family member (Identified by name) and no money is being exchanged?

Thanks
Len

TimB4 (Tennessee)
Posts: 21,061

Posted:

Len,

On a tangent, what is the basis for charging a transfer fee for rentals?
Is this in your covenants, bylaws or simply a resolution adopted by the board?

LetA (Nevada)
Posts: 2,679

Posted:

Quote:

Posted By LenF1 on 05/10/2018 5:47 PM
I live in an association in Florida. we have rules on rentals (minimum 30 days) and the HOA must receive a $100 transfer fees.
Many people are circumventing the rules by telling the HOA they are not renting their unit but allowing a relative to use it. They then place the undisclosed renter on the gate access list to gain entrance.
The loss of the transfer fee is the least of the problem. There are liability issues and there is the problem of the HOA not ever knowing who are using their facilities.
My question is: Can the HOA ask the owner to sign a affidavit to the fact that they are allowing use of their residence to a family member (Identified by name) and no money is being exchanged?

Thanks
Len

First, who is responsible for changing the gate access? is is a board member or property manager? Why not charge a "fee" ;) ;) ;) for changing the gate.
It wold appear to me that an owner frequently requesting the gate information be changed or updated more frequently than normal would indicate they are
violating the CC&R's. There is your proof to fine the owner and call them to a board meeting to plead their case.

TimM11
Posts: 354

Posted:

Quote:

Posted By LenF1 on 05/10/2018 5:47 PM

Many people are circumventing the rules by telling the HOA they are not renting their unit but allowing a relative to use it.

So, how do you know that they're not?

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By LenF1 on 05/10/2018 5:47 PM

My question is: Can the HOA ask the owner to sign a affidavit to the fact that they are allowing use of their residence to a family member (Identified by name) and no money is being exchanged?

This is a tough situation because it is hard to prove they are lying. You can ask for an affidavit, but if the owner is going to lie in the first place, they could lie there too.

Escaped former treasurer and director of a self managed association.

AdamD1 (Indiana)
Posts: 179

Posted:

Your question was, "Can the HOA ask the owner to sign a affidavit...?"

My reply: Sure, the HOA can ask anything. Whether they have the authority to compel a homeowner to comply with their request is another issue.

We have a two pet policy. Specifically, our governing docs state: No animals, livestock, or poultry of any kind shall be raised, bred, or
kept on the Property, on any Lot, or in any Dwelling Unit, except that no more than a total of two
(2) dogs, cats, or other normal household pets may be kept in residences subject to rules and
regulations adopted by the Association through its Board of Directors, provided that such pets are
not kept, bred, or maintained for any commercial purpose.

Do a LOT of homeowners have more than two pets? Yes! If a homeowner has three goldfish, they are violating our CC&Rs.

I state this because a lot of time on paper it may make sense to have a certain restriction. However, in reality, enforcement of them is another hurdle!

LenF1 (Florida)
Posts: 2

Posted:

We know that some people are renting without presenting a lease to the HOA as required in the bylaws. we live in southwest Florida and have many Europeans who own a condo but do off the cuff rentals to their friends and acquaintances from back home. One of the main reasons is that these European renters wish to hide any paper record their presence in the US to avoid exceeding their Visa restrictions. The $100 rental fee to the association is to cover paperwork and such. I know people can lie on the affidavit, but it does send a message just by asking them to sign it.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I don't think the HOA should charge money for a "Rental fee". What paperwork is involved? The HOA is a 3rd party to the lease agreement. Your by-laws just say to provide a copy to the HOA of the lease agreement. What cost is involved in this? What does it do to have a copy? The HOA can't evict the tenant. Can't make them pay the dues. (Except in Florida in certain circumstances involving foreclosure against owner).

The more important requirement to have is NOT an affidavit. It's to have the lease agreement stating the renter agrees to follow the HOA's rules. That is usually NOT in lease agreements. Having that requirement gives more power to the owner to evict their tenant for HOA rule violations. Tenant's have rights too. If the HOA rules violation isn't in the terms of the lease, the owner can't end the lease. The HOA has to keep the owner/member's feet to the ground. The owner gets punished for their Tenant's violations. However, they would not have a way to kick the tenant out if that doesn't list that as a reason to evict.

Former HOA President

RichardP13 (California)
Posts: 3,868

Posted:

There are some HOA's that don't even who the owners on their property are. There are some HOA's that are VERY well run with a large staff. They would require this type of oversight, especially if you are dealing with a large number of amenities. Some HOA's charge a move-in move-out fee, whether it is a owner moving out or tenants. They may have to put special padding in the elevators for protection. Staff may be need to check tenants out to make sure all keys and or remotes are accounted for.

BenA2 (Texas)
Posts: 1,273

Posted:

The only way you could require such an affidavit would be if the law or your CC&Rs allowed it, which would be surprising. I think it is unreasonable to ask a homeowner to sign a document swearing that they are not violating rules.

I would treat it like any violation of the CC&Rs; if you have evidence of the violation, investigate it and take any necessary action. If the evidence does not show a violation, you have to let it go.

ArtL1 (Florida)
Posts: 140

Posted:

You might also check local zoning codes. It could be a zoning code violation to do short-term rentals in a typical residential neighborhood. If it is, that's probably also a covenant violation (illegal use of the property). You're still left with figuring out how to enforce.

GreggT (Florida)
Posts: 77

Posted:

Quote:

Posted By TimB4 on 05/10/2018 7:25 PM
Len,

On a tangent, what is the basis for charging a transfer fee for rentals?
Is this in your covenants, bylaws or simply a resolution adopted by the board?

This question was never answered and holds the key to the correct answer.
Basically unless this is in your Doc's you can forget enforcing this. If it is but was adopted at some later date by a super majority owner vote, then those that owned prior also are not bound.
Somehow I think this was just a board decision, if so, good luck on enforcing!!

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