Condo Association Management Blog

This is happening in NC with our condo Board also.

I'm in Utah, 180 unit condo complex. We have two owners right now that rented their places before we could find out about it. After a few months of unreturned phone calls we spoke to our lawyer who told us to start charging extra condo fees. We sent registered letters to the owners telling them they had 60 days to move the renters out, or sell to the renters, or we would start charging them $500/month until the renters are gone. The idea was to make it non-profitable for the owners to rent their units. 
 
Sounds great right? It's been a few weeks and we haven't heard from either of the two renters. Our By-Laws prohibit renting so we will probably end up having to take them to court. Too bad, everybody loses with that happens.

I'm not a lawyer but the reason they rent and your board does nothing about it is because its probably against the law to tell people they can't rent out there condos and they would waste a lot of money on lawyers trying to prove their point.  
 
If you notice the guy in Utah's posted stated he talked to his lawyer. The lawyer did NOTHING but probably took a fee for giving poor advice.  
 
Victor

For Gary, 
I also live in a Ut. HOA and have some info that may help you. Drop me an email if you're inclined. jleavitt@digis.net Jeff

I can't speak for other States or your laws, for that matter even your by-laws and docs; however here in FL the State just enacted new law that makes a rental more appealing to us, the renter and the owner. If the owner(investor) rents to a good tenant, then why hassle them? You win and he wins, you get your HOA fees and he gets his rent, the property is maintained inside and out and no-one is hurt. Also, when a investor rents the unit, make sure he goes through the process of an interview with the tenant and Board as well as provide the new tenant with your "House Rules". This way your investor knows up-front that you expect both him and his tenant to abide by those rules. In FL, if the investor doesn't pay the HOA's then the Board has authority under the new law to collect from the tenant, the investor's monthly income will be reduced accordingly until all fees are current. If the tenant refuses to pay the fee(s), then the board has legal authority to evict the tenant and still has the power to collect fees from the owner. While I can understand upholding the by-laws, I can also live with a good paying tenant and owner. We have several tenants in our complex and have found them to be very decent people.

Now is not the time to complain.My parents bought a condo in Florida 40 years ago for their retirement. My mom has since passed away and my dad is 95 and in a nursing home and us kids are stuck with the mess. The whole complex is full of empty condos with children who inherited the property living all over the country. We cannot afford to pay the fees and my father needs his estate to pay for his care.Even the cable bill is included in the monthly assesments so we are stuck with that even though no one has lived in the condo for years.The only way out either walk away or rent.Renting pays the dues and everyone including the assocition stays afloat.

Bob can you please create a new post about your parents condo for their retirment instead of posting into an existing post. 2 different problems can confuse the issue with the originals posters issue.

Victor: It seems to me that Bob's post is related--he is explaining WHY people sometimes need to rent. He is also saying t hat without renters whole complexes would fall.

Arnold your right. Sorry Bob keep on posting!

Most mortgage companies will not grant a mortgage to a potential buyer if there are, in their view, to0 man retntal un its. Tha'ts one reason many sets of bylaws prohibit retanls. Secondly most state's condominium acts make referent to their laws concerning rentals in condos and hoas. Download and read your own law.

I guess some of you didn't get my complaint about rentals. How would you like living in a building where the investor/owner has illegally rented his unit to an illegal alien, then that person has moved 6 others in with no furniture, sleeping on the floor etc. Case in point, the board & management company would do nothing about it. The point is, investors are renting their units without requesting permission from the board. Another case, the illegal renter above me has different gentlemen friends over almost every night, if you get my drift. Again, the board will do nothing about it. My complex was very nice until all of these units started to be rented illegally..

Barbara, 
 
You are spot on with your concerns. Once renters are in, it's extrememly difficult to get rid of them. What if they were cooking meth?

Our Homeowners voted to have rental restrictions added to our covenants. Stating in detail the requirements of leasing , all leases have to be approved by our Board. We have also set a limit of Rental Units. I will be happy to forward the information to you.Any change to your covenants requires a vote, we had been in the same boat, but things have greatly improved.

Investing in real estate is never really a loss...there might be ups and downs but as time passes the real estate market will stabilize...

Selling a unit is difficult today but with rentals increasing the FHA has imposed limits as to number of rentals they will accept in an association. Toomany and they shall deny mortgge. Another big hurdle to selling.

I am also in Georgia, we ammended our covenants whereas the Board of Directors has to approve all Tenants. There are also local ordinances in regards to the number of persons allowed to occupie a unit. I deal with Realtors on the units for sale and inform them, that the Board has set a limit on Rentals vs. Owner occupied. So far it has worked for us. Investors receive a letter stating that the unit cannot be rented period.

It is still a mess with condo rentals at my complex in Georgia. 
 
I notified the managment company in December that the illegal renter above me moved out & to be sure to advise the investor/owner he can't rent it.  
 
Well guess what, a new renter moved in last week. I advised the management company & the condo board and they said sorry, as long as the owner paid their monthly condo fee they could care less. Our condo documents do say no rentals allowed, unless grandfathered in. I know for a fact that the board is not giving permission to this owner to rent his unit. Last week I had an incident that the illegal renter above move was jumping up & down on her floor. Because of this a painting & a ceiling vent fell down in my condo. I approached her about this problem and she called me very terrible names that can't be repeated here, saying it was none of my business what she did in her own apartment. I advised her that she was living in a Condomium not an apartment. I advised the board & management company of what occurred but they have chosed to ignore my concerns.  
 
I can't afford a lawyer, help, what can I do

Dagmar - We are contemplating adding rental restrictions to an 86 condo unit in NC. Would appreciate any info you could provide me.

Dagmar - sorry I forgot to include my email: debrich@ec.rr.com

With the financial troubles that almost ever condo and HOA are encountering this is not the time to restrict rentals. You could cause a few more foreclosures than might be good for the association.