Condo Association Management Blog

I live in a HOA community with the same issue that people who had bought in the beginning and rented out there homes would be grandfathered in but they could only rent out their homes for 2 years and show hardship and try to sell the property for at least 6 mths before renting it. this is an issue that has come up for a vote in our upcoming Oct meeting. Not sure how I feel about the issue because of the market most homeowners are renting out their properties and we live in a heavy military presence who get stationed out of the area or our deployed and they also have to show hardship not sure if this is legal..We will see what happens with the outcome mid October..

This is why people should stay active with boards and what the heck there doing. Rentals should be in your bylaws. You should also ask around to see if the board somehow changed the bylaws illegally. I'm not sure about the state your in but in NJ it takes 2/3 of the community to vote on changes to the bylaws.  
 
Do you know of anyone or ask around if about renters in your community. If so then go talk to them.

Ann, I think the rental issue in your HOA and your predicament have everything to do with your state laws governing common interest real estate associations. The board may be misinformed and trying to enforce a new policy that is in conflict with your state laws. You will have to refer to the laws that have superiority over your association.

Another issue to consider in this matter is the attitude of mortgage lenders towards condos with "too many" rental units, with "too many" an undefined term. The rule of thumb is 20% or less as lenders may be reluctant to lend to new buyers otherwise. You should check with a few prominent lenders in your market.

Larry, I agree you should check to see if you are in compliance with the CC & R's. Too many rentals bring down property values