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Is this discrimination against landlords

Started by RickR12 • 14 replies • 501 views

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RickR12 (California)
Posts: 10
Posted:
I own a rental property in a townhome community that has 25% rentals. I recently listed my home For Lease as the tenant was vacating and my realtor put his sign in the yard. I received a notice the very next day from the HOA asking me to remove the For Lease sign.

Article 2 - Use And Construction Provisions, Section 2.2 Prohibited Uses and Activities, Article (m) Sign Restrictions states “…No sign of any kind may be kept or placed upon any Lot or mounted, painted or attached to any Residence, fence or other improvement upon such Lot advertising the Residence for lease or rent.”
Please remove the For Lease sign in your yard. Continued violation of this rule will result in the HOA assessing one fine per day (which shall not exceed $500.00 for each individual fine.).

The restriction is only against landlords from posting "For Lease" signs. However, "For Sale" signs are allowed to be placed in the front yard.

I find this discrimation against the landlords as the previous HOA President have been unhappy about the growing number of rentals in the community and took several steps to force landlords to prevent it. THe board was fired when landlords joined together.

Is this considered discrimination as it appears that this may have been added to the bylaws by the previous President.

CathyA3 (Ohio)
Posts: 6,299
Posted:
What do your CC&Rs say about signage?

If they only allow For Sale signs, then that's your answer. (My CC&Rs allow only one For Sale sign in the mulch bed adjacent to the unit, and state point blank that no other signage is allowed.)

Of course you can choose to fight it if you have the time and money. You may not get anywhere though. (And any additional expenses you incur will cut into the profit you make on renting your unit, so there is that).
AugustinD
Posts: 3,698
Posted:
This is possibly "selective enforcement," but it is not "discrimination" in the sense meant in HOA/COA legal language.

In my opinion you should use California's IDR (Internal Dispute Resolution) procedures to try to get the HOA/COA to cooperate. See https://www.davis-stirling.com/HOME/Internal-Dispute-Resolution

Of course, your taking action on this could result in neither sellers nor landlords being allowed to put up signs.

Please be exact when you are citing your HOA/COA's governing documents. For example, is this Article 2 you quoted from the Bylaws or from the Declaration of covenants or maybe from the Rules and Regulations? The difference is important.

The topic is complicated enough that you would likely best be served by hiring an attorney.
MaxB4
Posts: 3,513
Posted:
That is a section from your CCRs and it will stand. You can contact an attorney in California and they will tell you you have no leg to stand on and the CCRs restriction is enforeceable.
KerryL1 (California)
Posts: 14,550
Posted:
Please cite the language about "For Sale" signs, Rick, and tell us what document it's in. Are you sure the article 2 you quote is in the Bylaws?? That's not typical as normally it'd be in your CC&Rs or rules & regs.

If you landlords are only 25% of the HOA, how did you recall the previous board ? (Sorry, off topic)
BenA2 (Texas)
Posts: 1,273
Posted:
Yes, it discriminates but there is nothing wrong with that. You could say that any restriction on rentals discriminates against landlords, yet they are very common. As long as they are not illegally discriminating against a protected class, I do not see a problem.

As you mentioned, if enough members are landlords they can affect a change.
LetA (Nevada)
Posts: 2,679
Posted:
Not at all discriminatory. The very first word in your Article 2 covenant says NO!!! Owners that live in their houses have rights too. They don't want their community overrun with rentals. Too many rentals in any given common interest community gives homebuyers and owners looking to refinance fewer options, and limits FHA and especially VA backed mortgages.
SheliaH (Indiana)
Posts: 6,964
Posted:
I'm with LetA and my townhouse community has similar language in its documents. These days people can use other methods to advertise, so I'm not very sympathetic to landlords (who are a primary reason my community has had its issues with rentals over the years).
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RickR12 (California)
Posts: 10
Posted:
THis is in the CC&R. I have attached a screenshot of this section.
RickR12 (California)
Posts: 10
Posted:
Quote:
Posted By KerryL1 on 07/17/2021 9:44 AM
Please cite the language about "For Sale" signs, Rick, and tell us what document it's in. Are you sure the article 2 you quote is in the Bylaws?? That's not typical as normally it'd be in your CC&Rs or rules & regs.

If you landlords are only 25% of the HOA, how did you recall the previous board ? (Sorry, off topic)

The ex-President took the extreme step of stopping all lease temporarily until the HOA could determine how many units are actually leased. They only know they exceeded the cap but did not know the exact number of rentals. There is very little interest from the owners when it comes to HOA meetings. It was easy for the landlords to join together and recall the Board.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Considering that renters are NOT contributors to the HOA nor members, I can see why HOA's frown upon advertising for getting more "visitors" they can't do anything about....
Former HOA President
KerryL1 (California)
Posts: 14,550
Posted:
Can’t see your screenshot, Rick
KerryL1 (California)
Posts: 14,550
Posted:
Can’t see your screenshot, Rick
CathyA3 (Ohio)
Posts: 6,299
Posted:
Seriously, if the landlords have taken control of the association, the handwriting is on the wall. Lenders refuse to lend in communities with too many rentals, and many buyers don't want to live in such communities anyway. What you'll likely end up with is a rental community owned by a bunch of hands off owners whose only interest is getting as much money out of the place as possible - unlike an apartment complex with a single owner who has at least some incentive to keep the place from falling apart. I'd tell any owner in the community to get out while they can.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By CathyA3 on 07/21/2021 11:15 AM
Seriously, if the landlords have taken control of the association, the handwriting is on the wall. Lenders refuse to lend in communities with too many rentals, and many buyers don't want to live in such communities anyway. What you'll likely end up with is a rental community owned by a bunch of hands off owners whose only interest is getting as much money out of the place as possible - unlike an apartment complex with a single owner who has at least some incentive to keep the place from falling apart. I'd tell any owner in the community to get out while they can.

Sound advice.

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