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EdwardD5 (Florida)
Posts: 5
Posted:

As a board director I have seen many rental in our community. Our management company charges an application fee, however the association receives none of the application fee even though our members must pay for the renters using (and abusing) our pool furniture and costing our security headaches. We would like to add an additional $100 fee for all rentals as the board must review and approve all rentals as well as check for multiple cars parked in driveways where renters are residing.

What is restricting the board of directors instituting a $100 fee to all unit owners that rent their single family zoned residence.
ElleN (Idaho)
Posts: 4,420
Posted:
You are suggesting a board-made rule or even membership-voted-on amendment adding on fees for units with renters based on an assumption that these units cause more day-to-day wear and tear on the common areas and require more daily enforcement work for the management company, correct? I do not like the chances of such a rule or amendment passing legal muster. For one, note that this would be a unique assessment imposed on only certain owners. The covenants that discuss assessments would need some serious re-writing and require a membership vote. Most likely a super majority of all owners would have to vote for this. What percentage of the units are rentals? If the percentage is over 25%, the chances of this passing are probably slim. You just could not get the votes from the landlords to pass the amendment.

I advise just being very strict in enforcement and increasing the penalty (exponentially?) for offenses that are the same and repeat. Be pit bulls. This is your property. Don't put up with abusive and destructive behavior from anyone.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By ElleN on 02/01/2023 10:25 AM
You are suggesting a board-made rule or even membership-voted-on amendment adding on fees for units with renters based on an assumption that these units cause more day-to-day wear and tear on the common areas and require more daily enforcement work for the management company, correct? I do not like the chances of such a rule or amendment passing legal muster. For one, note that this would be a unique assessment imposed on only certain owners. The covenants that discuss assessments would need some serious re-writing and require a membership vote. Most likely a super majority of all owners would have to vote for this. What percentage of the units are rentals? If the percentage is over 25%, the chances of this passing are probably slim. You just could not get the votes from the landlords to pass the amendment.

I advise just being very strict in enforcement and increasing the penalty (exponentially?) for offenses that are the same and repeat. Be pit bulls. This is your property. Don't put up with abusive and destructive behavior from anyone.

I know for a fact that the law firm that has the www.davis-stirling.com site has a number of rental restrictions and fee additions included in their restated CCRs that they push.
ElleN (Idaho)
Posts: 4,420
Posted:
Max, I agree if the HOA can get the supermajority of votes, this is the first hurdle. Otherwise I'd have to see the particular rental restrictions and fee additions to say anything useful.
ElleN (Idaho)
Posts: 4,420
Posted:
Everything here seems fine to me: https://www.davis-stirling.com/HOME/H/HOA-Rent-Restrictions-Prohibitions

I do not see anything about assessing rental units more than non-rental units, solely because they are rentals.

Requiring a minimum lease term of at least six months or even a year might be among the best options for the OP's HOA.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By ElleN on 02/01/2023 10:39 AM
Max, I agree if the HOA can get the supermajority of votes, this is the first hurdle. Otherwise I'd have to see the particular rental restrictions and fee additions to say anything useful.

You don't need a supermajority of votes, you just need to lie that you got at least 50%.
LoriM15 (Florida)
Posts: 1,009
Posted:
Is it an HOA or a condo? FS 720 or FS 718?

We are an HOA. We charge a fee to do the background check and credit report. We also require each landlord provide a $500 security deposit to cover any damage caused by the tenants.

Our bylaws allow the board to make a decision on how much we charge for those things, except the $500 security deposit amount is written into our declaration.

FS 718 makes things much more difficult than in an HOA. I know you can't charge a capital contribution in a condo, and I also don't think you can charge a "rental fee". If your documents don't specifically call this out, I would check with your attorney. I suspect there's no way to do it.
ND (PA)
Posts: 792
Posted:
I would additionally seek to understand fully what the MC is doing to warrant collecting a fee for this part of the process. It may very well be deserved, but could also just as easily not be deserved.

Granted there is (or should be) work involved in receiving, organizing, filing/database-ing, and verifying appropriateness/completeness of a rental application. However if some or all of that work is passed to the HOA Board instead, then I'd question why the MC receives any/most/all of that money and it isn't instead income for the HOA.

Of course also important is the contract with the MC and what that indicates as far as fees for services and what services are performed. But I've found that this is sometimes another one of those sneaky income stream for MCs (like resell package preparation, and violation letters/fining) where they can potentially do minimal work, pass responsibility to unpaid volunteers, and reap hefty profit.

That said, I'd more support an appropriate fee to the MC if they were doing the all of the work in regard to rental applications and verification, and the Board was mostly out of the process. Board would merely just have to review and approve/deny applications based on whatever criteria exists and aside from that is hands-off.
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By ND on 02/01/2023 11:00 AM
But I've found that this is sometimes another one of those sneaky income stream for MCs (like resell package preparation, and violation letters/fining) where they can potentially do minimal work, pass responsibility to unpaid volunteers, and reap hefty profit.

Kinda like lawyers, huh?
ND (PA)
Posts: 792
Posted:
Quote:
Posted By MaxB4 on 02/01/2023 11:08 AM
Posted By ND on 02/01/2023 11:00 AM
But I've found that this is sometimes another one of those sneaky income stream for MCs (like resell package preparation, and violation letters/fining) where they can potentially do minimal work, pass responsibility to unpaid volunteers, and reap hefty profit.


Kinda like lawyers, huh?

Haha. Max is/was one of those MCs reaping profits from some or all of these processes.

But to Max's credit ... state laws allow for MCs to collect some of these fees. MC contracts further allow and define these fees/services. And likely Max and many others are working within all those parameters and are entitled to and deserve the money from those fees. BUT there are other MCs who take things to ridiculous degrees, bastardize processes, and greedily line their pockets at the expense (literally and figuratively) of their HOA clients.

That said, I probably should have left those other examples out, but for the sake of brevity, I didn't elaborate on my thoughts regarding those other processes. But nuances are fully debated and elaborated on within other threads.
MaxB4
Posts: 3,513
Posted:
ND

Let me give you one scenario, and it is in regard to filing a lien. The HOA may use an attorney or the MC and that would be discussed upfront when hiring an MC.

Let's say the HOA uses an attorney and charges $500.00 to file and record a lien. A majority of the information is provided by the MC, name address(s), communications to and from the owner, and ledger. We get nothing for the service we provided and the attorney charges the $500.00 to the HOA upfront. On the other hand, I charge $400.00 for the same service, but the HOA only pays when the owner has paid. Even though I've incurred expenses, I will hold off payment until the HOA is made hole. We are in a service industry and we expect to be paid for the services we provide, no different than other industries out there. I write an email or respond to an email from the board, I don't have a fee for that. But, if a board or MC emails legal counsel, we get billed for the "time" it took them to reply, which is generally $250.00.

Back to the OP, Florida is the only state that I am aware where they are allowed to screen the renter, even the owners that rent or buy within a community and charge them the fees to do so. Many of the MC's primary business is the rental or sale of property and not HOA management. They only dabble in HOA management and don't know or care about the rules a state may regulate a HOA.
SheliaH (Indiana)
Posts: 6,964
Posted:
You'll have to check your documents to see if this is allowed, but I suspect you'll probably need to amend them in order to do this. Amending documents mean a certain percentage of the homeowners must sign off on this, and if you already have a ton of rentals, this proposal will likely fail.

Ironically, one of our former board members also rented his unit before selling it, and at the time we were trying to get a rental cap approved for our CCRs (you can imagine how that went), he suggested owner-landlords pay a move-in/move-out fee every time they rented the unit. This would help offset some of the additional expenses renters bought to the association, like additional noise and trash. That didn't go over either, but this type of fee might be more acceptable because owner-landlords can always pass that expense onto the renters.
you'll
Until then, having lots of renters doesn't necessarily translate into more trouble, so you'll have to focus on going after the owners for community rule violations. The key is being consistent and fair in applying rule enforcement to everyone so you can avoid the selective enforcement thing, along with proving Mrs. Z's renter and his friends did, in fact, toss the pool furniture into the swimming pool two nights ago.

Security cameras and pool passes everyone would have to use could also work - if you have a system where you swipe in and out, that could help identify possible suspects. If things get really rowdy, hire pool monitors - before we got rid of our pool, we used off duty police officers who also had the authority to shut the thing down and send everyone home, if necessary. On one occasion, the board decided to leave it closed for almost two weeks and letters were sent to all homeowners explaining why - and that if the craziness continued, we'd shut it down for the rest of the summer. It was gangster, but it was effective.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MaxB4 on 02/01/2023 10:48 AM
Posted By ElleN on 02/01/2023 10:39 AM
Max, I agree if the HOA can get the supermajority of votes, this is the first hurdle. Otherwise I'd have to see the particular rental restrictions and fee additions to say anything useful.


You don't need a supermajority of votes, you just need to lie that you got at least 50%.

opps you said the quite part out loud!

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MaxB4 on 02/01/2023 12:21 PM
ND
Let's say the HOA uses an attorney and charges $500.00 to file and record a lien. A majority of the information is provided by the MC, name address(s), communications to and from the owner, and ledger. We get nothing for the service we provided and the attorney charges the $500.00 to the HOA upfront. On the other hand, I charge $400.00 for the same service, but the HOA only pays when the owner has paid.

You are a saint! in NC it costs about $5 to file a lien.
Let me get this straight? you dont' charge the HOA the $5! You only charge them $400 if and when they collect? Again you are a saint! God bless you!

vis ta vie
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By EdwardD5 on 02/01/2023 9:42 AM

..... the association receives none of the application fee even though our members must pay for the renters using (and abusing) our pool furniture and costing our security headaches.

let me guess you have zero proof that renters cause more damage than other owners? I'm guessing there might be one bad renter and therefore all renter are bad?

In my HOA I get the same complaints about renters. but from my perspective the renters are more likely to come to social activities, volunteer, and help the HOA get free city grant money. Poor Renters are a scrape goat IMHO.

I think your fees are ridiculous. checking for extra cars parked is even more ridiculous. What's next you gonna outlaw people having visitors that use cars?

vis ta vie
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By WendyM5 on 02/01/2023 1:11 PM
Posted By MaxB4 on 02/01/2023 12:21 PM
ND
Let's say the HOA uses an attorney and charges $500.00 to file and record a lien. A majority of the information is provided by the MC, name address(s), communications to and from the owner, and ledger. We get nothing for the service we provided and the attorney charges the $500.00 to the HOA upfront. On the other hand, I charge $400.00 for the same service, but the HOA only pays when the owner has paid.


You are a saint! in NC it costs about $5 to file a lien.
Let me get this straight? you dont' charge the HOA the $5! You only charge them $400 if and when they collect? Again you are a saint! God bless you!

I don't live in NC, nor would I ever want to want to!

Sorry, in California, the minimum price to record a lien is $113.00, that is the cost, plus a CA SB2 fee of $75.00.

I know your reading skills are somewhat diminished or limited, BUT I stated the HOA is only charged ONCE the owners have paid, therefore, there is NO cost to the HOA!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
May I ask how this fee will look on your taxes? Now debate...

Former HOA President
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Quote:
Posted By MaxB4 on 02/01/2023 1:33 PM
Posted By WendyM5 on 02/01/2023 1:11 PM
Posted By MaxB4 on 02/01/2023 12:21 PM
ND
Let's say the HOA uses an attorney and charges $500.00 to file and record a lien. A majority of the information is provided by the MC, name address(s), communications to and from the owner, and ledger. We get nothing for the service we provided and the attorney charges the $500.00 to the HOA upfront. On the other hand, I charge $400.00 for the same service, but the HOA only pays when the owner has paid.


You are a saint! in NC it costs about $5 to file a lien.
Let me get this straight? you dont' charge the HOA the $5! You only charge them $400 if and when they collect? Again you are a saint! God bless you!


I don't live in NC, nor would I ever want to want to!

Sorry, in California, the minimum price to record a lien is $113.00, that is the cost, plus a CA SB2 fee of $75.00.

I know your reading skills are somewhat diminished or limited, BUT I stated the HOA is only charged ONCE the owners have paid, therefore, there is NO cost to the HOA!

the numbers are of little importance. bottom line is you only help out the HOA if it helps your bottom line.
Not sure how implying that boards can just lie about getting votes helps your bottom line, but that's another discussion in an of itself.

vis ta vie
MaxB4
Posts: 3,513
Posted:
Quote:
Posted By WendyM5 on 02/01/2023 3:10 PM
Posted By MaxB4 on 02/01/2023 1:33 PM
Posted By WendyM5 on 02/01/2023 1:11 PM
Posted By MaxB4 on 02/01/2023 12:21 PM
ND
Let's say the HOA uses an attorney and charges $500.00 to file and record a lien. A majority of the information is provided by the MC, name address(s), communications to and from the owner, and ledger. We get nothing for the service we provided and the attorney charges the $500.00 to the HOA upfront. On the other hand, I charge $400.00 for the same service, but the HOA only pays when the owner has paid.


You are a saint! in NC it costs about $5 to file a lien.
Let me get this straight? you dont' charge the HOA the $5! You only charge them $400 if and when they collect? Again you are a saint! God bless you!


I don't live in NC, nor would I ever want to want to!

Sorry, in California, the minimum price to record a lien is $113.00, that is the cost, plus a CA SB2 fee of $75.00.

I know your reading skills are somewhat diminished or limited, BUT I stated the HOA is only charged ONCE the owners have paid, therefore, there is NO cost to the HOA!


the numbers are of little importance. bottom line is you only help out the HOA if it helps your bottom line.
Not sure how implying that boards can just lie about getting votes helps your bottom line, but that's another discussion in an of itself.

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