Doc rewrite to include max rentals in neighborhood

NathanL1 (Texas)
Posts: 23

Posted:

Yes, I am here in the Great State of Texas, I am asking if anyone here has any experience or knowledge concerning re writing our dedicatory instrument regarding the maximum amount of rentals that can be allowed at any given time in a neighborhood.. Another option would be have, how many homes can a company or landlord have in the same community?

the community that I help volunteer in is nearing 25%. rental. We are afraid in general that a huge LLC or corporation can come in and purchase many many homes over a course of time and slowly elect their own board of directors, in other words, the overall best interest of the neighborhood and future not exactly in their best interests.

does anyone here have any experience with this, or know of any resources?

Thank you so much in advance!

MelissaP1 (Alabama)
Posts: 13,836

Posted:

You might want to read other posts on the subject. This is covered A LOT in here. Plus you have to read your State laws on this one...

Former HOA President

MarkR21 (North Carolina)
Posts: 710

Posted:

Just make a new rule that owners must wait 2 years before renting. Mega rental companies then won’t buy in neighborhood

MarkR21 (North Carolina)
Posts: 710

Posted:

Just make a new rule that owners must wait 2 years before renting. Mega rental companies then won’t buy in neighborhood

TimB4 (Tennessee)
Posts: 21,059

Posted:

You mentioned that this needs to go into your CC&Rs already.

It's difficult to manage and enforce a rental cap.
It's much easier to manage and enforce a waiting period after ownership (as others have suggested).

TimB4 (Tennessee)
Posts: 21,059

Posted:

Concerning Resources:

The Do's and Don'ts of HOA Rental Restrictions

What Kinds of Leasing Restrictions are Allowed by the FHA? A Lancster law blog 2016 article

Can a Texas Homeowners Association Impose Rental Restrictions or Screen Prospective Tenants?

New HOA Laws Go Into Effect Today Sept 2021

NOTE: per that article:

HOAs are barred from requiring access to lease agreements and are only allowed to request a tenant’s contact info and lease beginning and end dates.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

Posted By NathanL1 on 06/09/2022 2:03 PM
Another option would be have, how many homes can a company or landlord have in the same community?

I doubt that trying to limit how many properties a single entity can own would be enforceable. In any case you should discuss what can be done and how to properly do it with your association attorney.

Escaped former treasurer and director of a self managed association.

KerryL1 (California)
Posts: 14,550

Posted:

There are 3-4 good regular posters from TX--hope they'll check in for you.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 06/10/2022 4:10 AM
You mentioned that this needs to go into your CC&Rs already.

It's difficult to manage and enforce a rental cap.
It's much easier to manage and enforce a waiting period after ownership (as others have suggested).

I agree. Go for the waiting period.

JustinT5 (Alabama)
Posts: 50

Posted:

this old post had the legal wording used for limiting rentals
https://www.hoatalk.com/HOADiscussionForum/tabid/55/view/topics/forumid/1/Default.aspx

I wish the exact legal wording was included in more posts. Lawyers typically charge less to just go over a document than to write it from scratch and it's fairly simple to change a document to fit your HOA's needs.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Justin,

The link you provided simply goes to the list of topics.

JustinT5 (Alabama)
Posts: 50

Posted:

https://www.hoatalk.com/Search/ForumSearch/tabid/87/forumid/1/postid/34373/view/topic/Default.aspx

TimB4 (Tennessee)
Posts: 21,059

Posted:

Note:

The full legalize might not comply with your State statutes.
This is why it's best to have an attorney review what is proposed prior to sending it to the membership for a vote.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By TimB4 on 06/11/2022 1:36 PM
Note:

The full legalize might not comply with your State statutes.
This is why it's best to have an attorney review what is proposed prior to sending it to the membership for a vote.

Sound advice and as a matter of fact, I would say begin the discussion on limits with your attorney.

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Here's what our docs said:

Leasing of Residences are subject to the following Restrictions: No Residence Owner shall be authorized to lease a Residence until after the twelfth (12th) month of ownership and Owner occupancy of the Residence. The Board of Directors shall have the right, on application for same, to allow variances to prevent hardship. The determination of hardship or the granting of a variance shall be in the sole discretion of the Board of Directors. Only Entire residences may be rented (the term “rent” shall include lease). No Residence Owner may lease less than the entire unit nor shall any Residence Owner rent a Residence for less than twelve (12) months. Any lease agreement shall be required to provide that the terms of the lease shall be subject in all respects to the provisions of the Declaration, the By-Laws and Association’s rules and regulations and that any failure by the Lessee to comply with the terms of such documents shall be a default under the lease. Residence Owners are required to inform their tenants of the Association’s rules and regulations and Residence Owners are subject to fines for their tenant’s violation of Declaration, Bylaws or rules and regulations. All leases shall be required to be in writing and a copy of same must be updated annually and deposited with the Association’s managing agent. Residence Owners must also provide the Association’s managing agent contact information for the Owner’s tenant. No subleasing is allowed. Owner must provide his or her personal address (not his or her Sugar Creek Villas address) to the Association’s managing agent when leasing a Unit.

SteveH35 (Washington)
Posts: 339

Posted:

Quote:

Posted By JohnT38 on 06/11/2022 1:46 PM
Here's what our docs said:

Leasing of Residences are subject to the following Restrictions: No Residence Owner shall be authorized to lease a Residence until after the twelfth (12th) month of ownership and Owner occupancy of the Residence. The Board of Directors shall have the right, on application for same, to allow variances to prevent hardship. The determination of hardship or the granting of a variance shall be in the sole discretion of the Board of Directors. Only Entire residences may be rented (the term “rent” shall include lease). No Residence Owner may lease less than the entire unit nor shall any Residence Owner rent a Residence for less than twelve (12) months. Any lease agreement shall be required to provide that the terms of the lease shall be subject in all respects to the provisions of the Declaration, the By-Laws and Association’s rules and regulations and that any failure by the Lessee to comply with the terms of such documents shall be a default under the lease. Residence Owners are required to inform their tenants of the Association’s rules and regulations and Residence Owners are subject to fines for their tenant’s violation of Declaration, Bylaws or rules and regulations. All leases shall be required to be in writing and a copy of same must be updated annually and deposited with the Association’s managing agent. Residence Owners must also provide the Association’s managing agent contact information for the Owner’s tenant. No subleasing is allowed. Owner must provide his or her personal address (not his or her Sugar Creek Villas address) to the Association’s managing agent when leasing a Unit.

Your CIC is tracking owner occupancy? Interesting. How's that working?

JohnT38 (South Carolina)
Posts: 1,631

Posted:

Quote:

Posted By SteveH35 on 06/11/2022 2:36 PM

Posted By JohnT38 on 06/11/2022 1:46 PM
Here's what our docs said:

Leasing of Residences are subject to the following Restrictions: No Residence Owner shall be authorized to lease a Residence until after the twelfth (12th) month of ownership and Owner occupancy of the Residence. The Board of Directors shall have the right, on application for same, to allow variances to prevent hardship. The determination of hardship or the granting of a variance shall be in the sole discretion of the Board of Directors. Only Entire residences may be rented (the term “rent” shall include lease). No Residence Owner may lease less than the entire unit nor shall any Residence Owner rent a Residence for less than twelve (12) months. Any lease agreement shall be required to provide that the terms of the lease shall be subject in all respects to the provisions of the Declaration, the By-Laws and Association’s rules and regulations and that any failure by the Lessee to comply with the terms of such documents shall be a default under the lease. Residence Owners are required to inform their tenants of the Association’s rules and regulations and Residence Owners are subject to fines for their tenant’s violation of Declaration, Bylaws or rules and regulations. All leases shall be required to be in writing and a copy of same must be updated annually and deposited with the Association’s managing agent. Residence Owners must also provide the Association’s managing agent contact information for the Owner’s tenant. No subleasing is allowed. Owner must provide his or her personal address (not his or her Sugar Creek Villas address) to the Association’s managing agent when leasing a Unit.

Your CIC is tracking owner occupancy? Interesting. How's that working?

Couldn't tell you I moved. I can tell you that a saved search for any rentals in the community are set up on Zillow, Realtor.com and Trulia. If a rental pops up it is sent to the property manager and the Board email address. Also, the Welcoming Committee visits all new residents and if the person they speak to doesn't match the new owners names they let the P.M and Board know. Before I left a homeowner threatened to sue because her buyer wanted to rent it. The Board basically told her to bring it on and she backed down and the sale fell through. Obviously there is no full proof way to catch violators.

That was several months ago and I have no idea what is happening now.