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SheliaH (Indiana)
Posts: 6,964
Posted:
Well, here's the latest saga in the madhouse I call my HOA.

We have two newsletters - one for people who rent their units and the other for homeowners. We used to combine the two, but realized some of the information was really suited for homeowners only, such as the financial reports. So, last year, we decided to create a quarterly for the tenants.

To make this work, we have to create two distribution lists - actually three because we have a lot of off site owners and those have to be mailed. We've tried encouraging people to provide emails so we can save money on printing and postage, but the results have been extremely dismal.

As I review the distribution list to send the last issue of 2009 to everyone, it's just occured to me - why are we doing the work that the off-site owners should be doing? If these guys and gals owned an apartment building, they'd have someone stick newsletters, flyers or whatever in the mailboxes or in the door, but in this case, the off-site people appear to be getting these services for practicallly nothing (they pay the maintenance fee, charge a bundle to rent the place out and collect profits a plenty).

This is supposed to be a homeowners association and while I'm all for making the tenants feel welcome (who knows, some may want to buy their unit someday), we've having assorted financial problems and rather than dump the quarterly, I'd just as soon send a copy to the homeowners and let them worry about getting the thing to THEIR tenants. Happily, one such homeowner has agreed to do just that - if they all went ahead and emailed or mailed the thing themselves, we'd save printing and postage that way.

So, I ask the same question I did in my "survey sez" thread from last week - am I being entirely too picky?

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Shelia,
Well you certainly got my vote.

I believe, in general and in nearly all cases, any association money that is spent for the edification of the tenants or prospective tenants of renters is a support of a private business and the association has no mandate to enter into this matter. In fact I would guess it is a improper and could be cause for a damage suit. Whether condo or HOA all monies collected are for the support of the common property and the welfare of OWNERS. The Condo/HOA is not in the rental business. I would go further and say, there should be a sur-charge for folks that rent property. I am not saying this is demanded by the documents, but what is demanded by the documents is that monies spent has to for the benefit of all and all alike. (Owners only)
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Shelia.
I meant to add that your excursion into the profits these homeowners make renting property is not fodder for this cannon. It is irrelevant and to mesh the two subjects together is going to do more harm than good. In a condo, you can have a little control over this situation in that the Board directs the management, be they manager or MC, and can restrict the incidental services that always come up when you have absentee homeowners or renters. Many owners renting do so with a contract to a rental company, the company should provide the little services such as providing keys, welcoming or instructing guests of the rules and regulations and the Board should ALWAYS demand that any rental issues be handled by the owner. I agree all owners should be civil and respectful to all tenants living in the association and if they desire to include them in any private social gathering that is nothing more than inviting a guest. They would not be welcome at a homeowners meeting, but some have posted here that they allow renters to attend Board meetings. I personally would rather the Board establish a Board member to serve as liaison for any renter issue and all matters of this kind be resolved by the Board and rules and regs established.
SheliaH (Indiana)
Posts: 6,964
Posted:
Thanks for your comments! I will bring this up at the next board meeting (we're off until January) - one of the members owns several units with his family, so it'll be a hoot to see what he has to say. For this issue, I'm thinking if landlord/homeowners really want their tenants to have the quarterly, they should pay some sort of subscription fee to cover printing and our handyman's time in passing these things out, or we can email it to them at no charge and they can print off as many copies as they need and mail them

Generally, we stay out of landlord-tenant issues, making it clear over and over again that the landlord/homeowners are ultimately responsible for the conduct of their tenants. For example, the homeowner has to approve the tenant's renting the community building and get swimming pool passes for them. If they violate community rules, we go after the homeowner as if he or she lived in the unit. It's up to him or her to settle things with the tenant, meaning it's THEIR responsibility to review the rules with the tenant and make sure they comply. It just seems to me that we've spent a lot of time dealing with tenants and various issues (we have a lot of them, which brings up another set of problems I'm sure you're familiar with) and I'm tired of it.

Regarding meetings, tenants are welcome to attend and even speak up during the resident Q & A session we have at the begining and end of the meetings, but they're told that the Board's responsibility is to the owners and they have absolutely no say in what gets done and why. Of course, hardly anyone (owner or tenant) attends the meetings anyway, so that hasn't been a problem.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Shelia,
Probably your next step may be to try and cost account how much time is spent by management on renters problems. We had a board that tried this, don't work because NO monies should be spent in support of a private business (In my opinion of course) You can't set some dollar amount and say that any money spent over a certain amount will be charged to the individual owner that rents. I have read of condos that charge a sur-tax (if you will) on folks that rent. Good idea until you try and justify what is spent for rental property, then that falls apart because you aren't supposed to spend any money not mandated by your documents. If you change your documents, well, good luck on that, I can just see our owners that rent (maybe 40%) voting to pay more money to the association. However, if the association is new, then that is the time to get this kind of thing in the documents. There has also been proposed here and other sites that the adoption of a rental charge program can be accomplished by education of the owners that rent and try and make them realize, in the long road, too many rental units present the wrong picture of a residential community, especially in condos. All open to opinions.
SheliaH (Indiana)
Posts: 6,964
Posted:
Hm, figuring out how much time and money is spent on renter issues is intriguing, but I think you're right - it would probably be difficult to calcuate and the offsite owners who rent out their units wouldn't care anyway. You're also right about too many rental units - we've tried change our CCRs for three years now to set a rental cap and tried to explain how that affects our ability to get owner-occupants. If a potential buyer can't get financing through FHA, Freddie Mac and the others who are looking hard at owner/renter percentages, we risk getting more investor owners (and even more renters) because they may be the only ones with the means to get financing through conventional means or just pay cash because home values everywhere are down. We even put in a grandfather clause for current owners, but that didn't help.

And then these people wonder why their property values are down and the community looks "junky"! Here's a tip - try spending a little time doing background checks on your tenants and visiting your investment every once in a while and you'll get the answer to that question!

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GlenL (Ohio)
Posts: 5,491
Posted:
Sheila to get back to your newsletter dilemma, if your newsletter is normal 8 1/2 x 11 pages stapled together, you could do one newsletter and put what you consider for owners only on the back page or two and just remove those pages when dropping off or mailing to the renters.

Studies show that 5 out of 4 people have problems with fractions
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Glen,
If you would please, send an e-mail to my Gmail account. I am concerned about something in our association and would like your opinion, off the talk site.
[email protected]

Thank you.
SheliaH (Indiana)
Posts: 6,964
Posted:
Glen, we used to do that, but then there were complaints about the time needed to remove the pages. However, it may be worth trying again.

The real issue behind all of this is keeping up with which townhouse has a renter or not, which is also time consuming. When we get someone to distribute the newsletter, he or she has to stop and check addresses to drop off the right one We had considered not sending anything to the tenants (which may still happen, depending on finances), but I like to do community building whenever possible and think some sort of communication is better than nothing.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Shelia,
What does your documents say about what new owners are required to sign before they move in. Our documents require (although the Board won't enforce it) that all leases (rental agreements) must be submitted to the association with certain information. I forget specifically, but it is an arbitrary list.
One day, I will be successful in badgering the board to enforce this, then, I hope they will also install a sur-tax to handle the administration of this rental business. Lots of bugs here but I think it can be worked out that the administrative expenses of rental property will be covered by those owners renting. If you can get this administrative entity in place, the association would not, as a whole, be charged for rental business.

Glen, see my post above for you.
GlenL (Ohio)
Posts: 5,491
Posted:
Quote:
Posted By RobertR1 on 12/03/2009 8:01 AM

Glen, see my post above for you.

Robert I sent you an email yesterday at 2:58PM from [email protected] to the address you posted, i just copied and pasted it into the send to line.
[email protected]

Studies show that 5 out of 4 people have problems with fractions
GlenL (Ohio)
Posts: 5,491
Posted:
Shelia in that case if you could print the renter's newsletter in a different color without the added pages; you'll still have to keep track of what goes where though. We are 12 family style condos so we just drop 12 issues in the bin by the mailbox and let the people who want one take one, we don't edit content for renters and we also mail a copy to the off site owners.

Studies show that 5 out of 4 people have problems with fractions
EllenS1 (Florida)
Posts: 1,148
Posted:
Shelia,

I don't think you are being too picky. What about including two copies of your newsletter and ask the owner to forward one to their tenant?
RobertR1 (South Carolina)
Posts: 5,164
Posted:
I have to ask:
Unless this newsletter has to do with association matters such as rules and regulations, what business does the association have in providing any sole information to renters, and if needed, it should be addressed to the owners Just not in their mandate or authority. Security issues may demand that personal contact be made in some circumstances.
SheliaH (Indiana)
Posts: 6,964
Posted:
Having completed distributing these newsletters (just before the first snowfall in Indy), I see that I have a few more comments on this issue - thanks again!

Ellen, this is the approach I think we're heading for - again, I'd hoped to skip the paper (and the costs) and email everything, but as you can see, that didn't happen. Incidentally, I ran into the board member I mentioned in the beginning and he was happy to distribute the tenants newsletter to his people (this board member really isn't so much a problem as the rest of the family when it comes to HOA issues, but that's another, longer and more tragic story)

Robert, the tenant's newsletter was designed to provide information on the community rules and occassional announcements, such as the swimming pool season's start and end dates (tenants had to go to the owner to get a pass). Since the homeowners newsletter is published every two months, we figured a quarterly published every three or four months would save some printing costs, and it has to some extent.

One of our board members pushed to return to the original format, saying it took him nearly three hours to distribute them because he had to check which townhouse had a renter vs an owner/occupant. I agreed it could be cumbersome, but since this would only occur three times a year, I thought it was a small price to pay. (Of course, I now understand what he was talking about because the president couldn't find anyone to pass them out, and I went ahead and did it - here's hoping I don't catch another cold!)

For my part, it's the unwillingness of the landlord/homeowners that irks me the most. I wish we did have more regulations regarding landlord-tenant issues, and our proposed CCR revisions do address some of this (like a rental cap), but as you can imagine, we haven't been able to get it ratified because the homeowner/landlords form a fairly large voting block.

Perhaps if we get rid of the tenants newsletter, these homeowners will be badgered more often for current information on community issues, which may force a lot more of them to pay attention to the newsletter we send them. Maybe a few of them will actually start coming to meetings and hear about the community's problems firsthand, instead of mumbling about "high" maintenance fees.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

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