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Author Topic:   HOA & Rental Restrictions
Janis

TUG Member

Posts: 1205
From: Frederick, MD Wk 15 Royal Sands, Cancun Wk 51 Pelican, St. Maarten, Week 25 Lawrence Welk Villas , Escondido, CA
Registered: Dec 2000

posted 06-01-2005 18:08     Click Here to See the Profile for Janis   Click Here to Email Janis     Edit/Delete Message   Reply w/Quote Post A Reply
After the fact, I discovered that the home I bought in Florida is in a community whose HOA stipulates that the home can only be rented once in a 12 month period.

Thus, since I rented from December - March, I can't rent to anyone else until the following December.

Yikes! Mea culpa for not reading the docs carefully.

Does anyone have experience with whether this type of restriction on renting is enforceable?

I'm not looking to run a hotel - I am only interested in having long-term (2 month or longer) rentals. But with this restriction, my house sits empty for 8 months of the year when I could be making some income.

Thanks for any advice...

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Janis

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jwa287

TUG Member

Posts: 280
From: lyndhurst, ohio usa
Registered: Jul 2003

posted 06-01-2005 18:32     Click Here to See the Profile for jwa287   Click Here to Email jwa287     Edit/Delete Message   Reply w/Quote Post A Reply
My question is, what are the mechanisms the HOA uses to enforce this rule, and if you are caught, what if any penalties are potentially levied against you? If the possible penalty is not severe, then renting it out one more time this year may not be so bad. Then in 2006, you can attempt to find a long term renter. I know that sounds like you are flaunting the rule, but you have your financial situation to cover, and it may/may not be worth the risk.

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KenK
Moderator
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Posts: 4810
From: Nep.City, NJ/Hlwd,Fl
Registered: Dec 2000

posted 06-01-2005 20:24     Click Here to See the Profile for KenK   Click Here to Email KenK     Edit/Delete Message   Reply w/Quote Post A Reply
I'm sitting in our FL condo right now that allows no rentals to anyone at anytime.

We also can't do a million other things....but are allowed to pay the maint every month.

We once had one rental per year....but the renters must have been careless with the water in the bathrooms, and the people under them weren't too happy.

We can, however, rent out a parking space or some boat footage.

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KenK
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Posts: 4810
From: Nep.City, NJ/Hlwd,Fl
Registered: Dec 2000

posted 06-01-2005 20:25     Click Here to See the Profile for KenK   Click Here to Email KenK     Edit/Delete Message   Reply w/Quote Post A Reply
PS fine can be $25.00 per day per person in unit. Must prove you warned owner.

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Ken K
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Janis

TUG Member

Posts: 1205
From: Frederick, MD Wk 15 Royal Sands, Cancun Wk 51 Pelican, St. Maarten, Week 25 Lawrence Welk Villas , Escondido, CA
Registered: Dec 2000

posted 06-02-2005 13:37     Click Here to See the Profile for Janis   Click Here to Email Janis     Edit/Delete Message   Reply w/Quote Post A Reply
I don't know how to find out what the penalty is without putting myself on the HOA radar screen.

Any suggestions?

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Janis

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geekette

Non Member

Posts: 291
From:
Registered: Sep 2004

posted 06-02-2005 13:41     Click Here to See the Profile for geekette   Click Here to Email geekette     Edit/Delete Message   Reply w/Quote Post A Reply
can't you call anonymously?

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jwa287

TUG Member

Posts: 280
From: lyndhurst, ohio usa
Registered: Jul 2003

posted 06-02-2005 13:58     Click Here to See the Profile for jwa287   Click Here to Email jwa287     Edit/Delete Message   Reply w/Quote Post A Reply
What a shame. We live in a private, gated golf community just outside Hilton Head, and we have no restrictions for renting our property. In fact, we have renters in right now for one week.

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Nancy

TUG Member

Posts: 593
From:
Registered: Dec 2000

posted 06-02-2005 13:59     Click Here to See the Profile for Nancy   Click Here to Email Nancy     Edit/Delete Message   Reply w/Quote Post A Reply
When we bought our condo in Florida, we purposefully didn't buy in one complex because they did not allow any rentals. Did you read documents before you bought? Did you sign that you agreed to abide by the rules? Florida has many deed restricted communities and I'd be real leery of trying to break the rules.

JMHO
Nancy

(edited to correct spelling)

[This message has been edited by Nancy (edited 06-02-2005).]

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Dave M
Administrator
TUG Member

Posts: 6823
From: Boston, MA
Registered: Dec 2000

posted 06-02-2005 15:13     Click Here to See the Profile for Dave M   Click Here to Email Dave M     Edit/Delete Message   Reply w/Quote Post A Reply
Yes, the rules are very likely enforceable. Such community HOA rules are promulgated so as to avoid turning the community into a "hotel" atmosphere with frequent short-stay tenants who might not care whether or not they respect the rules. That alone could create significant havoc. And a high short-term tenant ratio might well cause the community to lose its favorable rating with mortgage lenders.

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Icarus

TUG Member

Posts: 1801
From: Makawao, Maui, HI
Registered: Mar 2001

posted 06-02-2005 20:26     Click Here to See the Profile for Icarus   Click Here to Email Icarus     Edit/Delete Message   Reply w/Quote Post A Reply
Any fines should be listed in the CC&Rs you were given prior to closing.

-David

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Visit our Kauai and Maui home page at http://www.flex.com/~dmk/tug/

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Mel

TUG Member

Posts: 1730
From: N Smithfield, RI - owner: Orange Lake Country Club, Kissimmee FL; Tropical Breeze Resort, Panama City FL
Registered: Dec 2000

posted 06-03-2005 08:09     Click Here to See the Profile for Mel   Click Here to Email Mel     Edit/Delete Message   Reply w/Quote Post A Reply
The other issue involved in this is mortgage rates. If more than I think 15% of the units are occupied by renters (long-term or short) mortgage rates can go up for everyone.

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Melinda Towne

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camachinist

TUG Member

Posts: 1616
From: Kerman, CA
Registered: Feb 2004

posted 06-03-2005 08:21     Click Here to See the Profile for camachinist     Edit/Delete Message   Reply w/Quote Post A Reply
quote:
Originally posted by Janis:
After the fact, I discovered that the home I bought in Florida is in a community whose HOA stipulates that the home can only be rented once in a 12 month period.

Thus, since I rented from December - March, I can't rent to anyone else until the following December.

Yikes! Mea culpa for not reading the docs carefully.

Does anyone have experience with whether this type of restriction on renting is enforceable?

I'm not looking to run a hotel - I am only interested in having long-term (2 month or longer) rentals. But with this restriction, my house sits empty for 8 months of the year when I could be making some income.

Thanks for any advice...


So, if you offer the home to "friends" for a few months, any issues? I've heard your generosity knows no bounds....

Pat

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Janis

TUG Member

Posts: 1205
From: Frederick, MD Wk 15 Royal Sands, Cancun Wk 51 Pelican, St. Maarten, Week 25 Lawrence Welk Villas , Escondido, CA
Registered: Dec 2000

posted 06-03-2005 10:40     Click Here to See the Profile for Janis   Click Here to Email Janis     Edit/Delete Message   Reply w/Quote Post A Reply
quote:
Originally posted by camachinist:
So, if you offer the home to "friends" for a few months, any issues? I've heard your generosity knows no bounds....

Pat



That gave me a chuckle! I'llhave to get started working on expanding my circle of friends....

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Janis

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Steve Barr

TUG Member

Posts: 446
From: Raleigh, NC USA
Registered: Jan 2001

posted 06-03-2005 11:12     Click Here to See the Profile for Steve Barr   Click Here to Email Steve Barr     Edit/Delete Message   Reply w/Quote Post A Reply
And then these 'friends' could make a 'donation' to your children's education fund. Rental, what rental?

Or, a 'relative' could stay there gratis. So what if they helped out on your car/mortgage/etc. payment?

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Steve H. Barr
Raleigh, NC

Assorted summer Daytona and North Carolina beach weeks.

It's o.k. if you disagree with me, I fully respect your right to be wrong.

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Nancy

TUG Member

Posts: 593
From:
Registered: Dec 2000

posted 06-03-2005 11:37     Click Here to See the Profile for Nancy   Click Here to Email Nancy     Edit/Delete Message   Reply w/Quote Post A Reply
Although you advice about "friends" sounds good, in our association there is also a limited amount of time that you can have "visitors", and it is less than "renters". If an association is savy, they know all the ways people try to break the rules. Our condo is managed by a management company that manages many different condo associations and I'm sure they know all the ways.

JMHO
Nancy

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Dave M
Administrator
TUG Member

Posts: 6823
From: Boston, MA
Registered: Dec 2000

posted 06-03-2005 12:23     Click Here to See the Profile for Dave M   Click Here to Email Dave M     Edit/Delete Message   Reply w/Quote Post A Reply
What Nancy says is true of my condo HOA, too. As President of the HOA for 11 years, I often had the sad but necessary task of taking strong action - in court, if necessary - to enforce our rules against wayward owners.

In our community, first reports to the board of directors of most violations of the type you mention have come from a neighbor. ("Isn't it against the rules to....?"). Legal counsel has advised us that once we become aware of a violation, we cannot ignore it or we risk making the CC&Rs - or at least the applicable parts - unenforceable.

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Mel

TUG Member

Posts: 1730
From: N Smithfield, RI - owner: Orange Lake Country Club, Kissimmee FL; Tropical Breeze Resort, Panama City FL
Registered: Dec 2000

posted 06-03-2005 14:00     Click Here to See the Profile for Mel   Click Here to Email Mel     Edit/Delete Message   Reply w/Quote Post A Reply
Dave is correct. If they look the other way for a few owners, they reduce their own ability to enforce in the future. They could have an option of suspending the rules for an owner under certain circumstances, but that would require the appropriate vote, and they would want to avoid setting a precedent - or again, they would have to make the exception for all owners in a similar situation.

We did not have rental restrictions when we owned a home governed by a community association, but we did have other restrictions. The houses were all duplexes, and our rules required the two sides to be of the same color. Problems started with someone replacing their siding with something sort of close, but not a real match, then someone with a complementary color (the old siding was an ugly color, but the new color actually looked nice with it). Because the HOA did nothing about that - not even a written warning or a request to remedy the situation (the HOA didn't have the money to press it in court), when someone replaced their side with the cheapest color he could find, the HOA was stuck. The two sides of the house looked terrible together, but it stayed that way.

Covenants need to be written very carefully, and then enforced to th letter. Otherwise they are unenforceable and meaningless. Had the HOA at least voted to allow a variance for the complementary colors, or made a token effort to enforce the rules, they might have been able to fight the colors that obviously clashed. They could have forced that homeowner to redo his house again in a color similar to the other side, or pay to have the other side done to match.

With this condo, they obviously want to avoid transient occupancy - if you want to lease your condo out for the year, they works with a once per year rental. Keep that in mind in the future - if you plan to keep the condo until you can retire, look for someone to lease a year at a time.

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Melinda Towne

Come visit my homepage

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Janis

TUG Member

Posts: 1205
From: Frederick, MD Wk 15 Royal Sands, Cancun Wk 51 Pelican, St. Maarten, Week 25 Lawrence Welk Villas , Escondido, CA
Registered: Dec 2000

posted 06-03-2005 19:43     Click Here to See the Profile for Janis   Click Here to Email Janis     Edit/Delete Message   Reply w/Quote Post A Reply
Yeah, sounds like I'm out of luck.

It's actually a single family home with a private screened in swimming pool on a golf course 15 minutes from the beach. I really don't want to rent it out for the whole year because I like staying there during the off-season (fall & summer).

My goal was to rent the four months in the winter, and then a couple of months in the Spring. These seem to be the times that most people want to visit South Florida.

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Janis

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