grandfathered condo rental

Started by DianeS4 • 4 replies • 1161 views

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DianeS4 (Arizona)
Posts: 1

Posted:

I live in a small 16 unit 55+ condo association. Before we established our 55+ status three of our units were purchased by one individual specifically for rental income. These units have been occupied by the same renters for several years. The bylaws were changed a couple of years later to establish our 55+ age limit and also to restrict any new owners from renting out their units. All units must now be owner occupied.

Recently one of the renters moved out. The landlord is seeking new tenants for the unit. It was brougt to my attention that they may have lost their renting priviledges once their "grandfathered" tenant moved out. The property has now been vacant for several weeks.

Does anyone know if this information is correct? Can we enforce the new bylaws and inform the owner that they if they do not intend to live in the unit themselves that it needs to be sold or left unoccupied. We have had some problems with the renters in the past and would prefer owner occupied units only.

KirkW1 (Texas)
Posts: 1,665

Posted:

First, if you worded your restriction correctly, then nothing has changed. The owner remains the same and thus still has a right to rent the unit out. You didn't state that only current tenants could remain.

Beyond this, an attempt to stop them from getting new tenants is likely to generate a lawsuit. You have removed an income source that they properly had before you made the restriction. As long as the current owner does not sell their units you will continue to have rentals. Note also that if they pass the property through inheritance you will still likely have renters.

Besides that, you should consider the current housing market. In many areas there are many houses sitting empty waiting to sell. If you can require the house to be sold, you could also well have an empty unit as they try to sell this off.

Now if you wanted to get new owners, you should contact the current owner. See if they would be willing to sell should you find a suitable buyer. If so, then you might be able to find a buyer and thus remove one rental from the rolls.

SusanW1 (Michigan)
Posts: 5,202

Posted:

I thought that the rule was for any NEW owner.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Diane,

I think that we would like to see the wording in the change to the Bylaws to see what the exact wording is. There can be no differences in the classes of ownership and to allow someone to continually rent out their units and not allow others to rent out, could be basis for a lawsuit if someone got the urge to do so.

KirkW1 (Texas)
Posts: 1,665

Posted:

Quote:

... There can be no differences in the classes of ownership and to allow someone to continually rent out their units and not allow others to rent out, could be basis for a lawsuit if someone got the urge to do so.

I suspect that a suit could also be brought when you take away the right to rent from someone who is currently renting. Seems to me that you have damaged their property. It is a wholly different matter if the people are not renting out at the time.

Now if you went to a 55+ neighborhood I could see requiring all future tenants having to have at least one household member over the age of 55.

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