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Condo owners selling units over rental rules

  
  
  
  
  
For 35 years there have been no restrictions on rentals of units in our 55+ condo association community. Last year an amendment was passed stating that condo units may only be rented after the owner has lived in the unit for one year. Now, as renters are leaving, owners (not just absentee owners, but long-time residents) are being told that they may not rent the unit again, so their only alternatives are either selling and taking a big loss in today's market or keeping up an empty unit and paying the costs. The condo board will not consider grandfathering them in and then changing the amendment, in spite of appeals. What are our alternatives?

Comments

I wouldn't sell and take the hit in today's market. I would wait it out till the next election, rally neighbors, campaign hard to overturn the board, and have the amendment reversed. Renting units should be allowed, with some form of board approval, as is the case in most condo communities. If the board is turning in to a dictatorship, worse problems are likely to come.
Posted @ Monday, January 25, 2010 8:23 AM by Jay Fink
If your condo association is in Florida, the amendment may not be enforceable. 
 
I suggest you need to read 718.110(13) of the Florida Statutes which I have c/p below 
 
718.110(13) 
Any amendment restricting unit owners’ rights relating to the rental of units applies only to unit owners who consent to the amendment and unit owners who purchase their units after the effective date of that amendment. 
 
I would also look as to whether or not the amendment was passed properly (i.e., proper meeting notice given, with agenda, a copy of the amendment provided) and properly recorded in the county's official records. 
 
If, as you stated there were no rental restrictions in the condo docs and the amendment was properly adopted. It might not be possible to enforce it on anyone who did not consent to the amendment. 
 
Florida Statutes can be found http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=Ch0718/titl0718.htm&StatuteYear=2009&Title=-%3E2009-%3EChapter%20718
Posted @ Monday, January 25, 2010 1:25 PM by Joyce Nord
CAI just had a large item in their latest magazine about rentals. This article would be perfect for this situation. 
 
Obvioulsy, the amendment passed. That will prove difficult. Enough owners are of the opinion that this issue is serious enough to warrant a change. If this was not grandfathered in or such language were placed in the amendment to either grandfather in already rented units or allow the board to make a case by case determination or exception, the hands of the board may be tied. This item may not have come up during the amendment, or maybe it did and the majority didn't want it. 
 
You need more information and you should meet with the board. You may also consider meeting with an attorney if it directly affects you.
Posted @ Monday, January 25, 2010 1:34 PM by Joe Schuirmann
A Board can improperly pass an amendment, i.e., they did not get unit owner vote for an amendment which requires it, the board only voted, they did not provide proper notice, or the amendment itself was not done properly.  
 
Under Florida law notices, how to amend etc, are very specific and if not done properly the amendment may be declared invalid. 
 
Whether or not it passed is not the issue, whether or not the people affected voted for it is (at least under Florida Law). 
 
This advise is being provided as a licensed Manager and Licensed Management firm, not as an attorney. We are merely providing an avenue for you to research and be empowered with. 
 
So, you should always seek the advice of an attorney.  
 
Posted @ Monday, January 25, 2010 3:01 PM by Joyce Nord
I agree with some of the other comments. You have to call a special meeting and toss out the Board Nazi's and take control. Only then can sanity and rational thinking be put back in place.
Posted @ Thursday, February 04, 2010 7:43 PM by Barbi Rose
1. Gather all those who agree with you and plan for the next meeting when there will be voting of board members. 
 
2. Consider running for a board position. Changing the board members to reflect what the majority of owners want is the best way to be sure things are run based on what the majority wants. 
 
3. Ask for documentation on this new amendment - there must be a specific percentage of owner approval to pass and this can be different state to state. Did you vote on this issue? 
 
4. Be at EVERY board meeting and encourage others to attend as well. Generally only a fraction of owners even bother - unless they're upset about something.
Posted @ Saturday, February 06, 2010 8:31 AM by Cindy S. LeDonne
I have just rented a house in an area with pool and amenities. the owner pays for us to use. they just passed a rule only the number of bedrooms will be allowed IE 3 bedrooms three people. Husband and wife count as one not two. this is only for renter. Would this be concidered discriminatory against one segment {renters} This is in florida
Posted @ Monday, March 29, 2010 7:52 PM by upset renter
Hi 
 
My HOA also is trying to pass an amendment. They want people to live in their home at least two years. They want a no less than 12 month lease and has to be approved by the the broad of the directors. The broad of directors can evict the people without proper lease. I live in Richmond, VA. Any advice will be appreciated! 
 
Thanks
Posted @ Saturday, May 29, 2010 1:03 PM by Frank
I'm not following the legal definition of amendment. There are 2 sets of rules here in NJ. By-laws which can only be changed with a super majority(66%) and rules and regulations which the board approves. I enforce that ALL leases MUST be presented to the Board(by-laws) and we reinforced this rule(regulation) recently with penalties.Rents HAVE to be controlled as they are the leading reason for the deterioration of condo assoc across the country. Over 30% and you lose your FHA approval. I have more problems with renters than anything else.
Posted @ Thursday, September 30, 2010 1:27 PM by Mark
In Florida, Boards are not able to create rental restriction rules themselves as this is viewed as s serious matter all owners should vote on. An Association is required to amend their condo docs instead - which requires unit owner vote.
Posted @ Friday, October 01, 2010 7:09 AM by Joyce Nord @ bestcondomanager.com
I have a condo in a building where the association limits the number of units that can be rented. I rented my unit for 3 years now the tenant is moving out and I've been told I have to be on a wait list to rent it again. There are 3 people ahead of me each has 60 days to exercise their option. Which means it could be 7 months! I had planned to sell the unit but in todays market it's impossible. The board will make no exceptions. I can not afford to keep the unit empty even for a month. I'm thinking of just ignoring them and renting it anyway and let them take me to court. Does anyone happen to know if these type of association rules will hold up in a court of law?
Posted @ Friday, June 03, 2011 12:13 PM by Cassey Reynolds
We own condo sites that are registered with the state of Florida that conform to statute 718. The Association was founded in April of 2007 and it is still under control of the Developer. Our original Restated Declaration of Condominium allowed unit Owners to either rent their property with the Developers “for profit” Rental management company or with any other rental company including by yourself. That is, there were NO RESTRICTIONs for OWNERS on the rental choice. 
 
 
 
We have been exercising the option to rent our condo’s (RV sites) by ourselves for the past year. Now the Developer has called for a Limited Proxy vote to restrict rentals to ONLY his rental management company. Are we covered by 718.110(13) that states that HOA’s can not restrict owner rental of their units (broadly speaking)? That statute would allow us to continue renting on our own and be grandfathered. Do you agree? Will the new more limited restrictions signed into law dated July 2010 for 718.110(13) be binding for our sites – or can we rely on the restrictions in place at the time of our purchase (ie June 24, 2004 for statute 718.110(13)? 
 
Posted @ Friday, July 01, 2011 9:13 AM by ken kalinoski
Under FL Condo Statute 718 can a Board Member enter a unit without the owner being present, when escorting a licensed contractor cleaning dryer vents? The cleaning was approved and paid for by the board. Timely notices were mailed and posted. The Board considered it a safety issue. One owner threatened to sue if anyone entered her unit when she was not present.
Posted @ Thursday, November 17, 2011 9:07 AM by Merrell Beebe
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