Having to deal with community
members who rent out their properties comes with the territory of being a
community Board Member. The frustration that an unruly tenant creates can be a
tricky situation to deal with, so knowing how to approach these issues can help
Board Members avoid a potential nightmare.
The Rental Policy
It’s important to note that the
HOA has no authority either to enforce rules or to levy fines directly on
tenants.
The responsibility of managing a
tenant falls solely on the owner of the property. Owners, in turn, are then
held responsible by the HOA. This means that the HOA can fine property owners
for violations committed by their tenants. However, we don’t suggest this as a
default response to community violations.
Instead, the HOA should allow the
owner the option to handle the situation on their own. Owners should include
the community’s Governing Documents in their rental agreement, and make it
understood to tenants that a violation of those Governing Documents also
violates the rental agreement. Any infraction of the rental agreement could
result in the tenant’s eviction.
Rental Restriction Policy
A Rental Restriction Policy should
be in place to help protect the community from having more rental properties
than full-time residents. This becomes an issue when the number of rentals
exceeds roughly one third of the total number of properties inside the
community.
It’s important that the Board moves
forward with the creation of such a policy with the help of an attorney who
specializes in homeowner association law.
Minimum Rental Periods
The idea behind minimum rental
periods is to restrict or prevent any short-term rentals. There should be a
minimum one-month contract required for the rental of properties within the
community. This is especially pressing with emerging platforms like AirBnB and
HomeAway becoming popular. The community should not turn into a hotel.
Owner Responsibilities
In order to keep things above board,
the HOA should require the owner of the house or unit to provide the community
Board with the following pieces of information about the tenant:
Ensure that the Governing Documents
allow you to make reasonable rules and regulations regarding rentals.
The HOA’s rental policy should be
the first line of defense for the community against an unwanted tenant. Your
members should have the right to rent their property out, but they need to make
sure that the tenant is aware of the community guidelines and rules, and that
they are prepared to abide by them.
On a final note, it’s important for
the HOA and other community members to treat tenants as though they are actual
owners and not second-class citizens.