After Being Grandfathered into Previous CCRs

Started by CaseyD • 7 replies • 584 views

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CaseyD (Oklahoma)
Posts: 5

Posted:

I began leasing 2 rental properties on a short term bases in a neighborhood that had no rental restrictions. About 2 years later, the HOA Board, which was also the builder, updated the CCR’s to prohibit rentals that are less than 30 days. Although it wasn’t easy, eventually the builder grandfathered my homes into the previous CCR rules which allowed them to remain short term rentals until I sell them.

My question is, do I need to do anything with the letter the HOA sent me grandfathering my homes to ensure it is honored later? I’m wanting to plan ahead for when the builder transfers over the governing of the HOA. My only thought was that maybe I should record it with the county or something similar.

Thanks for your advice.

GenoS (Florida)
Posts: 4,276

Posted:

File it with the Official Records of your county. Sign an affidavit in front of a Notary and file that along with it.

CaseyD (Oklahoma)
Posts: 5

Posted:

Thanks for the response GenoS but could you expand a bit on what the affidavit should say?

RoyalP
Posts: 1,104

Posted:

ask your county's 'register of deeds' what is required for filing

JohnC46 (South Carolina)
Posts: 14,265

Posted:

If I recall, there is a way of filing/attaching something to a deed so anyone doing a deed search can see the attachment.

SueW6 (Michigan)
Posts: 814

Posted:

While you may be able to keep (grandfather) the ability to act as a rental, the minimum amount of days could be up for review with a new HOA.

Have there been complaints about the coming and goings of renters?

You have a potential motel there, as it is.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By SueW6 on 01/17/2019 7:14 AM
While you may be able to keep (grandfather) the ability to act as a rental, the minimum amount of days could be up for review with a new HOA.

Have there been complaints about the coming and goings of renters?

You have a potential motel there, as it is.

I'm always surprised that Airbnb style rentals are allowed at all in COAs or HOAs - they're clearly commercial use of residential property, and with people coming and going, they're not that different from an owner who is running a business and seeing clients in his home. You'd think that the association's insurer would have an issue with it, too, since transients change the risk profile of a community. I'm also surprised that it was allowed in a fairly new community that is still under developer control - I was under the impression that newer CC&R tended to forbid motel or corporate housing.

I think the problem is that they're referred to as "rentals", which confuses the issue. You don't refer to a stay in a hotel as "renting" - this should be no different.

That's my rant for the day...

AugustinD
Posts: 5,144

Posted:

Cathy's point about the risk profile changing and so being something in which an insurer would be interested is a good one, though maybe moreso for condominiums vis-a-vis stand alone homes.

If I were on the board with a like-minded majority, and assuming there were only a tiny fraction of airbnb rentals, and with an eye to what legally is allowed, I'd make sure the HOA's rules were on the side of not easily accommodating the often destructive behavior of transients. Airbnb is so new and so discussed, with controversy, in cities and HOAs alike, that I would be hopeful most felt as I did.

The OP may be lucky the HOA is not all-airbnb. Because if it were, his airbnb might not be so attractive. Not that he or she cares. He or she bought the place to rent it out (or moved out with the intention of renting it out). He or she has some rights. It's nice that people gave him or her straight answers.

Meanwhile, landlords and their tenants ruin property values at HOAs and condos. Federal mortgage lenders know it and set their rules accordingly. I think realtors know it.

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