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Old 03-25-2010, 07:42 PM
 
1 posts, read 16,254 times
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Our community Home Owners association has a rental cap of 25%. There are currently more than that rented since the management company has not enforced the CAP until now.

I'm currently renting the unit to my cousin and never got approval from the HOA to do so. They are not telling me that they don't care that he is a relative and are threatening a fine.

Are there any good strategies to getting around the restriction?
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Old 03-25-2010, 09:26 PM
 
2,685 posts, read 6,045,444 times
Reputation: 952
You should be fined. You should have followed the by laws you agreed to when you purchased and got approval.

Quote:
Originally Posted by basalkat View Post
Our community Home Owners association has a rental cap of 25%. There are currently more than that rented since the management company has not enforced the CAP until now.

I'm currently renting the unit to my cousin and never got approval from the HOA to do so. They are not telling me that they don't care that he is a relative and are threatening a fine.

Are there any good strategies to getting around the restriction?
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Old 03-25-2010, 10:35 PM
 
Location: Mableton, GA USA (NW Atlanta suburb, 4 miles OTP)
11,334 posts, read 26,076,879 times
Reputation: 3995
Quote:
Originally Posted by basalkat View Post
Are there any good strategies to getting around the restriction?
Don't rent out your property?
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Old 03-25-2010, 10:37 PM
 
Location: West Cobb County, GA (Atlanta metro)
9,191 posts, read 33,874,752 times
Reputation: 5310
Quote:
Originally Posted by basalkat View Post

Are there any good strategies to getting around the restriction?
Nope. What's law is law. It doesn't matter if they've strayed with other people or not. You signed in to the HOA as-is when you bought your place, and if they challenge you and you're the one not living up to it, you will lose. You can discuss with them about the other issues with other owners, but it won't matter because technically you are breaking the HOA yourself. That's the way they work out - seen it happen a hundred times this way. Sorry.
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Old 03-25-2010, 11:47 PM
 
3,243 posts, read 6,296,095 times
Reputation: 4923
Quote:
Originally Posted by basalkat View Post
Our community Home Owners association has a rental cap of 25%. There are currently more than that rented since the management company has not enforced the CAP until now.

I'm currently renting the unit to my cousin and never got approval from the HOA to do so. They are not telling me that they don't care that he is a relative and are threatening a fine.

Are there any good strategies to getting around the restriction?
If you really trust your cousin you could try adding him to the title as a small percentage TIC. Then he would be an owner too. When he moves out he could do a quitclaim deed. Definitely consult a real estate attorney about this for exact legal details.

If you can't sell your home in the current environment it is definitely better for the Hoa to have someone in the house instead of leaving it as a vacant house. A vacant house is difficult to insure.

Who are the lucky 25% who get to rent,the friends of the board members? Lesson to be learned,avoid hoas!
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Old 03-26-2010, 12:27 AM
 
Location: Acworth
1,352 posts, read 4,373,817 times
Reputation: 476
anybody can live in your home as you see fit.. you rent when you sign a lease/collect money in return.
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Old 03-26-2010, 05:20 AM
 
Location: Norman, OK
3,478 posts, read 7,252,923 times
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Quote:
Originally Posted by cityrover View Post
anybody can live in your home as you see fit.. you rent when you sign a lease/collect money in return.
Not in a HOA-controlled subdivision. There are regulations, and violations of those regulations will result in fines.
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Old 03-26-2010, 09:13 AM
 
Location: Lindbergh (Atlanta, GA)
126 posts, read 317,855 times
Reputation: 64
Quote:
Originally Posted by capoeira View Post
If you really trust your cousin you could try adding him to the title as a small percentage TIC. Then he would be an owner too. When he moves out he could do a quitclaim deed. Definitely consult a real estate attorney about this for exact legal details.

If you can't sell your home in the current environment it is definitely better for the Hoa to have someone in the house instead of leaving it as a vacant house. A vacant house is difficult to insure.

Who are the lucky 25% who get to rent,the friends of the board members? Lesson to be learned,avoid hoas!
This is a valid (and legal) way to do this. Probably won't make your HOA very happy, but the law is the law. The only way this wouldn't work is if all transfers of ownership need to be approved by your HOA. I don't think very many places do this, but check the bylaws.

You can do this yourself by going down to the county court house, or you can pay a law firm to do this for you. If you do it yourself, it would run you about $50 (depending on which county you are in). Not sure how much it would cost you if you wanted a lawyer to do it. Ive had lawyers do it for me for $50, but that was tied into the purchase of the property.

Last edited by bikefrontier; 03-26-2010 at 09:33 AM..
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Old 03-26-2010, 09:14 AM
 
17 posts, read 93,565 times
Reputation: 11
Check your HOA Declaration. Many allow family and relatives to stay in the unit without it begin considered a lease.
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Old 03-26-2010, 10:42 AM
 
Location: Mableton, GA USA (NW Atlanta suburb, 4 miles OTP)
11,334 posts, read 26,076,879 times
Reputation: 3995
Quote:
Originally Posted by capoeira View Post
Who are the lucky 25% who get to rent,the friends of the board members? Lesson to be learned,avoid hoas!
Most HOAs are just fine as long as you abide by the rules you agreed to, and the benefits derived from living in an HOA-controlled community often vastly outweigh the disadvantages.

I think the real lesson to be learned is this: if you buy into an HOA-controlled property of any type, make sure you read and actually understand what that means before signing on the dotted line.

Last edited by rcsteiner; 03-26-2010 at 11:10 AM.. Reason: Changed "agree" to "agreed"
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