Charging Reasonable Fees for Renting an Amenity

Started by Jadedone4 • 10 replies • 1205 views

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Jadedone4 (Virginia)
Posts: 495

Posted:

What are the positions of other HOA's on rental of HOA amenities? We have a game room/lounge that some owners want to use for personal use. I do not have an issue with that; but feel that there should be a reasonable charge for an owner to use a facility for "exclusive" use. There are others who feel that the general HOA dues pay for their "right" to use the amenity "fee" free. My position is that if the facility is being used for an exclusive purpose then it NOT available to any other owners - and that is NOT a right, or privilege; and is more of a want. What are the "norms" for other communities out there?

DanaA (Florida)
Posts: 117

Posted:

It depends on what you mean by "exclusive use". For one night? Sure. I think most HOAs will rent, say, their clubhouse/game room, for an evening to one of its members in good standing. It has to be reserved, they are charged a fee, and a cleaning deposit,etc.,etc., There was a recent post on this, and about liability insurance suggestions for those that rent the facility. You may be interested in looking at it. But if they are wanting "exclusive use", as in taking away an amenity for the rest of the members for any length of time, in no way, can you possibly do that.

Jadedone4 (Virginia)
Posts: 495

Posted:

Dana, yes for one night or a 2-4hr event, the gameroom/lounge would be for that owner's exclusive use, and no other residents would be allowed to use the space (unless invited by the renting owner).

The comments so far "against" are that our dues pay for the rights to use that space - which I fully agree with; however, it does not provide "exclusive" use of that space where you can refuse entry by another owner during that time. I think that the comment was "double taxation" would apply if we charge an owner for exclusive use of the facility.

NancyD1 (Florida)
Posts: 447

Posted:

We rent out our clubhouse ballroom to HOA members for a night or afternoon for a nominal fee of $100. plus $100. for cleanup. There is a deposit of $200. and only if the room is not scheduled for HOA usage that night. If a homeowner is having a party they have to have their vendors insurance and licenses in place with the application. We also require 2 months notice so we can schedule it on the calendar. It works very well and most times does not interfere with other activities in the clubhouse.

The homeowner has exclusive usage for that night because they are paying for it.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Nancy,
We have a Community room with kitchen 2 bathroom, living area and dinning area plus i large room for meetings. We have regulations and requirements for renting out area, but I am sure no insurance or other consideration except # of people. Owners use this room free and anyone else is charged.
Since the association owns the room and is part of common condo property, wouldn't our association insurance take care of it. With liquor it is BYOB. It is a very nice facility and seldom used as we only have about 6 fulltimers of 65 units.

BradP (Kansas)
Posts: 2,640

Posted:

Jade:

My feeling is that anytime an owner wants to use an amenity and shut out the rest of the community they should be an extra fee. Granted their dues gives them the right to use the space, but it does not give them the right to shut others out. The rest of the community could argue that they pay for it and should not be shut out.

I agree 100% with you, if they want exclusive right then pay for it, otherwise they need to share with the rest of the community.

PatrickH (California)
Posts: 204

Posted:

We charge a $ 50 fee and a refundable $ 250 security deposit for owners wanting to use the clubhouse for parties, etc. We don't rent it out to non members, but do allow the Board of Elections to use it for free as our local polling location.

SusanJ3 (South Carolina)
Posts: 61

Posted:

We charge, too. At one time, the key to the pool also opened the clubroom, but that was changed when it was discovered minors were hiding cigarettes in there. There was also some question as to mothers who were opening the room to put their sleeping babies in there while the mothers were at the pool, some 15' away. But exclusive use of the room doesn't include the pool, and some people didn't like that.

NancyD1 (Florida)
Posts: 447

Posted:

Quote:

Posted By RobertR1 on 11/06/2007 5:18 AM
Nancy,
We have a Community room with kitchen 2 bathroom, living area and dinning area plus i large room for meetings. We have regulations and requirements for renting out area, but I am sure no insurance or other consideration except # of people. Owners use this room free and anyone else is charged.
Since the association owns the room and is part of common condo property, wouldn't our association insurance take care of it. With liquor it is BYOB. It is a very nice facility and seldom used as we only have about 6 fulltimers of 65 units.

Robert,

We require insurance from a homeowner's vendors and any outside vendors. They are on the HOA property working as any other vendors we have. If there is a problem, with our property or theirs, the insurance guarantees our end and theirs.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Thank you Nancy.
I guess what i want to know is not about vendors, we have that pretty well covered. But if some group, lets say a ladys club not attached to our association (condo), but is a group from the HOA (island), or a member of our association reserves the room for a Casino night and the guests at that point could be anyone they want to invite. Would our condo insurance cover that. In your opinion, I will check this out with our insurance agency, I'm am trying to decide if I should make an issue of this with the Board. There is no way the Board would have any idea, that's just the way it goes here.

PaulM (Pennsylvania)
Posts: 1,347

Posted:

RobertR1: Check with the insurance company about purchasing a 'rider' to the existing policy which probably now just covers the members of the association.
If you are going to rent out your facility to a member of the assn. for a specific time period, you have to be willing to consider that the 'member' may also invite friends from outside the community, therefore, not assn. members.

When we had a group meeting at a school, we were asked to purchase a "rider" to our existing policy which would cover any accidents, etc. while at the site. The site would not be responsible.

You also have the option of posting a sign stating: Use room at your own risk, xxx Assn. will not be held liable in the event of .....just like signs at pool areas. But, check with the insurance on this as well.

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