"Maintenance Fees" for owners who rent

Started by BobM3 • 7 replies • 1740 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

BobM3 (South Carolina)
Posts: 1

Posted:

I am on the board of a 54 unit oceanfront Myrtle Beach condominium. All units are individually owned, and about 80% of the owners rent their units on a weekly or monthly basis to vacationers. Most owners who rent do so through one of about 4 rental management companies, and a few owners handle the rentals themselves.
A homeowner who does not rent has written a letter to the board asking that we consider charging a "maintenance fee" to the rental agents or the renting owners, to cover the additional cost of wear & tear on the common areas.
The concept is not without merit (yes, I do rent my unit), but I am concerned that charging renting owners an additional fee would violate our bylaws, which require that the cost of maintaining the common areas be borne uniformly by all owners. If that's the case, it would require a bylaw change.
Any thoughts? Has anyone had a similar situation?
BobM3

RogerB (Colorado)
Posts: 5,067

Posted:

Bob, with 80% renting I doubt you could get sufficient votes to approve amending the Declaration or the By-laws. If there are amenities in the common areas which could conveniently (without significant additional costs to collect fees) be charged a useage fee this could be considered by the Board.

HaroldS (Arizona)
Posts: 906

Posted:

I'm kind of curious what renters do in the common area(s) to cause additional expense that owners do not do. You didn't define what amenities are available in your common area, but even then who monitors if the renters use it more than the resident owners? Sounds like just another "brilliant" idea to soak the tourists. Harold

BradP (Kansas)
Posts: 2,640

Posted:

I agree with Harold, even it is rented out there aren't any more people utilizing common areas than if nothing was rented. I don't know how you can justify making rentors pay an additional fee because they "cause more wear and tear". Seems far fetched at best, I would scrap that idea.

WilliamT (Arizona)
Posts: 489

Posted:

Recently an attorney recommended inviting renters to the board meetings, and allow them to speak if they wish. Or the owner could write a note permitting them to speak as their representative.

The purpose is to make the renters feel like they are a part of the community, and not unwelcome outcasts. The board can make sure they have a set of the CC&Rs and Rules and answer any questions to help them understand that they are obligated to abide by the rules, and that the owner can be fined for their actions.

He feels this may help the renters to be more cooperative in keeping the visible maintenance up.

JanM (Texas)
Posts: 142

Posted:

I wholeheartedly agree with William! I was a renter for a while and now an owner, but during our "renting period" we were treated like red-headed step children. I went to the meetings anyway and was told my voice don't count. I was still a resident, paid assessments, and had to follow the rules. Above all, I'm an American!

JoeS4 (Kentucky)
Posts: 77

Posted:

We also encourage renters to attend meetings and give them a copy of restrictions when they move in and welcome them to the neighborhood, althought we don't have short term renters. The owner in our bylaws is responsible for all fees, and like Roger I don't think you would ever get enough owners to approve rental fees you could put it out there in a newsletter and give it a try. We make friends with renters to lower restriction problems as well as hopefully they will be owners as well one day.

EdR (Texas)
Posts: 170

Posted:

I have rental property (a house in Houston area) and I charge my renter up front for the annual assessment which is minimal ($220 a year). Afterall, they are the ones that will use the common areas, pool, playground, etc., walk their dog, etc. I then tell the MC to provide both the renter (by name and address) and me (by name and my address) with all information re violations, newsletters, etc., and the MC sends me the assessment bill and I pay it. You can either figure it into the rent or get it total up front. The owner is ultimately responsible for any repairs, etc., and if I receive a violation letter, I immediately get in touch with my renter and ask them to fix the problem (like trash being out, mowing, etc.) or I fix it if it's a structural problem (like loose gutter,etc.). When there is an election, I contact my renter and see if he knows the slate and has a choice for voting since I don't know the neighbors and don't live near. If not, I vote, but usually there are no more candidates than the number of offices open anyway. The renter gets notices of all board meetings, and signs are posted for them in the neighborhood as well. My personal opinion is that if the renter pays the dues, they are more likely to get involved and to uphold the deed restrictions AND expect others to as well. If my renter wanted to be a director, I'd give them the authority if that is what it requires, but since most assns. allow outsiders (ours does) to be on the board--they could run even if they lived in the next subdivision over, so why not have the renter on the board if they are in good standing. Maybe that would get more of them involved too.
EdR

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here