Condo rented without knowledge of other owners - what to do with CC&Rs?
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We are talking about following rules about renting the unit you own, nothing more. There are many, many ways around this.
Foreclosures are going to climb and climb, eventually HOA/condo are going to realize units with renters equals dues getting paid. Foreclosure equals no dues, sometimes for years. When enough units stop paying, they will look the other way. They will have no choice.
Like them or not, have you always gone through life looking for ways around rules?
If at 20 years of age and one is not an idealist, they do no have a heart.
If at 50 years of age and one is not a realist, they do not have a brain.
Many people win every battle they ever fought and still do not understand why they lost the war.
Like yes you were right, but you were "dead" right.
A smart and well managed HOA will place a lien against that property real quickly, forclose at first opportunity and get it into the hands of a paying owner. Allowing rentals when rentals isn;t allowed means they can be giving up their rights to enforce rental restrictions.
A smart and well managed HOA will place a lien against that property real quickly, forclose at first opportunity and get it into the hands of a paying owner.
Whoa. The association's lien is minimally secondary to the first mortgage, assuming the property has a mortgage. The last thing an associaion needs to do is become responsible for making mortgage payments and covering the unit's property tax nut.
Laws vary from state to state and sometimes within state. In my state, an association can obtain a court order to evict a homeowner which takes away the owner's right to live in his unit. It does not however, change who owns the unit.
Condos are increasingly pursuing court ordered evictions with the intent to rent the place out to cover past due and ongoing fees. I am aware of many situations where the owner owes more than $20,000 in prior assessments. It would be negligent of a condo board to not take reasonable action in the best interest of the association/ and the majority of owners.
eventually HOA/condo are going to realize units with renters equals dues getting paid. Foreclosure equals no dues, sometimes for years. When enough units stop paying, they will look the other way. They will have no choice.
I actually agree with this. Much rather a unit is rented out and dues are paid rather than a bunch of delinquent owner occupiers.
One of the reasons coop buildings are so much harder to sell than condos are all the rules (primarily income requirements and making it very difficult to rent out units).
Personally I think you will do far more damage to the value of the other units by putting unreasonable regulations in place than your neighbor has done by renting out her unit.
I would be careful of stirring up a hornet's nest and discovering that it's your actions (not hers) that cause a problem. I for one would not buy a condo I couldn't rent out in an emergency. No way, no how. You could easily end up with an unsellable unit.
I am a board member of a 26-unit townhouse association which has no restriction in its CCandR's against owners renting their units. Neither is there a restriction against absentee (landlord) owners being board members. In a perfect reflection of the fall in real estate prices over the past several years, we are seeing a gradual increase in tenant-occupied units (now at 5 or 6 out of 26). Several owners with small children who wanted a house with their own yard decided to rent rather than sell and take the "loss". Although I hate to see the increase in renters, I cannot blame the owners who are acting in their own best interest. For the first time recently, however, a unit was purchased with the intent of renting it out - the new owner (an investor, obviously), never moved in but put it up for rent immediately. Another sign of the economic times, and there is nothing we as a board can do about it. I suppose we are fortunate to have only one single delinquent unit at the present time, to the tune of about $1200. It could be worse.
I am a board member of a 26-unit townhouse association which has no restriction in its CCandR's against owners renting their units. Neither is there a restriction against absentee (landlord) owners being board members. In a perfect reflection of the fall in real estate prices over the past several years, we are seeing a gradual increase in tenant-occupied units (now at 5 or 6 out of 26). Several owners with small children who wanted a house with their own yard decided to rent rather than sell and take the "loss". Although I hate to see the increase in renters, I cannot blame the owners who are acting in their own best interest. For the first time recently, however, a unit was purchased with the intent of renting it out - the new owner (an investor, obviously), never moved in but put it up for rent immediately. Another sign of the economic times, and there is nothing we as a board can do about it. I suppose we are fortunate to have only one single delinquent unit at the present time, to the tune of about $1200. It could be worse.
Our Bylaws say one cannot rent their home until they have owned it for 6 months and the renter must sign a document stating they will abide by the HOA CC&R's.
Our BOD Members have to be an owner in good standing but that also says they do not have to live here.
Also if owned by more then one person, the owners must dictate who represents them as a voter in our elections.
That happened to the last place I was at, hence enlightening me to never buy HOA.
The thing is HOA board members & such really does not have the power to enter anyone's home without consent... thus trying to "prove" if there are other tenants on sub-let is not efficient at all.
All they can really do is to send a "mass" letter to all homes in the subdivision to try to "scare" the homeowners from breaking the rules (which if the broken rules cannot be caught, can not be proven & hence = no case scenario) <-which my sub-division has to deal with that same sub-let problems & to "problematic people" in which that guy is an FBI wanted & only after the arrest the problem became "known" to the whole neighborhood via the meeting or the nosey neighbours who saw the "caution tapes" all around the house & 5 plus cop cars...
even via a community meeting, no HOA board members actually do have the power to do anything (they do not have the power of the search warrant & if you deal w/ the police enough... something major have to go wrong, cases opened before police actually do something) to the homeowner unless he/she haven't paid up her dues. The HOA hence in my eyes, really do not have the power to "keep the value of its community"... hence to say that HOA can help maintain property value is but a "sales scam" to me... always have. And since a home is one of the biggest investment a person could have, that sales pitch (when it actually works guaranteed) would have been a good one to have & be a part of. Not so in many cases though... and it is proven time & again via many horror stories.
Also really, what can they really do if the burden of the proof of guilt is on their side to proof to court???
And then who are another homeowner nosey or not to be involved in another's problems???
What kind of line does "privacy" of the home owner's property has & when that line is crossed, what else can that homeowner do to the other owners???
When there is a case, there can also be that counter suit to be had... who has that time & money to play around other people's business really???
And I am sure, people with that kind of money would already have lived in an ideal where they have to deal with no nosey neighbours nor put up with someone else telling them what to do... all the while living in a property without the threat of having "someone else" devaluing it.
Seriously... the problem starts with the contract that guarantees nothing to the homeowners while still being able to get a monthly due for a "surface maintenance" (Gym, courtyard / community park, community house, pools etc.) that any home owner can actually live without (but for "keeping" the property value)!!! All the home owner really needs and still have to do is the cash to maintain their own home & property... the condo / HOA fees that cannot do that for them.
HOA, CC&R, condo fees staff & its members *do not* have many powers... remember that.
So really what are *you* paying for???
P.S. hence, when you buy... think carefully (want to solve the problem, always start from the beginning of the problem) what you are buying into, so you do not have that problems later.
If you cannot afford that "ideal"... save up till you can have it. Else, better off renting so you can ditch that "problem" (problematic neighbour who is subletting, undesirable people devaluing your property etc.) all together.
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