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Should MI HOA be charging arbitrary fee for renters?


Question:

extra-fees-for-condo-renters.jpgUpdate to a posting I submitting in Nov. 2014. Sorry about the long post, but I appreciate any discussions on or comments from those that have had similar issues. Thanks.

ORIGINAL POSTING Title: Michigan HOA imposing annual fees for rental of condo units. Link:

http://www.condoassociation.com/blog/tabid/19257/bid/108773/Michigan-HOA-imposing-annual-fees-for-rental-of-condo-units.aspx


Original Question: My HOA recently administered a $100 fee per year to the owners of any condo units being rented. There was a change to the Master Deed seven years ago stating that the board could do this, though it has not been initiated until now.

In addition, a notice had not been sent out informing condo owners of this. There has been plenty of discussion amongst owners regarding initiation of this fee, even though it is in the Master Deed.

After quickly researching, it seems that law in Michigan does not govern HOAs. Further, it seems this sort of action is legal in some states, and illegal in others.

Does anyone know of or have any information about associations implementing a yearly fee to condo owners renting their properties?

The HOA stated the reason for the fee is due to the additional cost of renters contacting the association. Shouldn’t this be covered by our condo association dues? Anyone with advice on this, or where I may gather additional information, would be great.

Now a year later the association has issued another $100 fee for the 2015 fiscal year. To date I have not after plenty of written letters received a direct response to my dispute of a $100/year renter fee. This year the association attorney contacted me and said the fee is valid. I responded with the laws and again the same responses as the posting in Nov. 2014 that basically a fee can't be charged.

Have yet again to get a response. Last response from me to attorney is if I don't get a response I assume that the fee is not applicable.

The following argument is that fees or penalties can’t be levied for something that hasn't yet happened, (specific cost associated with the fees) and that isn't directly supported with evidence. The hard cost charge must be fully justified and explainable of which this $100 charge is not.

This is just a basic principle. What this means is if the association can justify hard costs that go into having renters, it can likely pass the cost on to the owners of the unit.

For example, things like providing parking passes if the case or making additional keys for pool use distribution. If the association has to create and incur this charge for a renter, then the association may pass on the like charge to the owner for that (a few bucks).

However, simply because a renter uses the resources of the association (i.e. the pool, fitness facility, elevators, etc.) Those "resources" would be used whether it was a renter, owner, guest, etc. The key item is that there needs to be justifiable hard costs that the association has to bear as a result. Comments?


Answers (4)

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