Results 1 to 13 of 13

Thread: need help about rental

  1. #1
    Banned
    Joined
    May 2008
    Posts
    4,980
    Thanks
    3,072
    Thanked 3,517 Times in 1,922 Posts

    Default need help about rental

    Ok. I've written about this before on here. While my wrist had gotten broken and i was going through surgery I received a letter that they ( the home owners association) wanted to limit rentals to 5or 10% ( I can't even find the info. that's how un orgianized I am) any how. I was granfathered in unless my tenants didn't renew. Well they're not going to. I called and the president tells me there only allowing 5 and there's 13 rented out right now. I call bullshit on that! I built that house. I'm the original home owner. It could take years. I don't want to sell it right now because I make a good amount on it and I just redid the whole house when my other tenants destroyed it 2 years ago and it was vacant a year! I swear it said somewhere you could apply for a heart ship. My wrist would definitely apply as one as well as my condition I have. He's all well I need to call the lawyer. Isn't it ultimitely up to the board?!? can someone with experience please give me some advice. I also didn't get to vote and there is only maybe 30 houses . If 13 are rented I can't see the vote passing.

  2. #2
    Featured Member kaninchen's Avatar
    Joined
    Jul 2012
    Posts
    1,659
    Thanks
    930
    Thanked 5,550 Times in 1,321 Posts

    Default Re: need help about rental

    This reminds me of the snobby gated community HOA I grew up in. My parents hated dealing with the board. There has to be a contract or an official community regulation code right? Can you consult that for any fine print that might help you?

  3. The Following User Says Thank You to kaninchen For This Useful Post:


  4. #3
    Banned
    Joined
    May 2008
    Posts
    4,980
    Thanks
    3,072
    Thanked 3,517 Times in 1,922 Posts

    Default Re: need help about rental

    Well it says something at the end about a hardship that the board has the right to forego the cap. he told me that's during the 15 day waiting process that the baord has to renew. that if I had to go into the hospital. That's not how it's written. this guys a complete fucken moron anyway. maybe he wasn't popular in high school. When i found the paper I immediately called him back and he was like which one? Um it's signed by rhe clerk of couert idiot. then he tells me there's only 3 board members now( there was like 15 when i lived there( probably because noone likes marty) and he has to consult them and the attorney! He's all well you should of voted. Yeah. I got the letter like a few days after my surgery which I'm still not fully recovered from. I guess I'm going to have to get a real estate attorney. and Don't put it past me to go on TV with my wrist all in a sling and make them look like assholes. Ugh. And my lease is up july 1st. Also they give you 60 days to lease it. What if it takes longer?!? It took 5 months last time. This is such a joke I almost want to offer my tenannts like 300 off to stay.

  5. #4
    God/dess whirlerz's Avatar
    Joined
    May 2004
    Location
    Midwest
    Posts
    27,134
    Thanks
    55,898
    Thanked 26,028 Times in 13,271 Posts
    Blog Entries
    1
    My Mood
    Aggressive

    Default Re: need help about rental

    Be sure to get an attorney that specializes in HOA associations. It's an idea, to offer tenants $ off
    Good luck!


    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

    -Eartha Kitt

  6. The Following User Says Thank You to whirlerz For This Useful Post:


  7. #5
    Featured Member kaninchen's Avatar
    Joined
    Jul 2012
    Posts
    1,659
    Thanks
    930
    Thanked 5,550 Times in 1,321 Posts

    Default Re: need help about rental

    Aw girl! I agree with whirlerz that you should talk to a lawyer. Sorry, wish I could help more.

  8. The Following User Says Thank You to kaninchen For This Useful Post:


  9. #6
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: need help about rental

    ^^^ agreed that offering your existing tenants a rent discount to convince them to stay may be the 'least of the evils' !!!

    This would be about the only means of avoiding a protracted ( and potentially expensive ) battle with the HOA. If your existing tenants do move out, and you do lose your 'grandfathered' status, it would appear that you face the possibility of waiting for a VERY long time for enough other homeowners' tenants to move out for you to 'qualify' to rent the property out again under the 5 tenant ceiling. From a cash flow standpoint, 70% of something is better than 100% of nothing. And this is especially the case where yet more money would need to be spent on attorney's fees to still wind up with 100% of nothing.

    Also, in regard to possible sale of this house, if you sell, the ( new ) HOA rules will pretty much mean that any new buyer would also be prevented from renting out the property. This would limit the home's appeal to just people who intend to actually live in the house ... which is a smaller and smaller percentage of home buyers these days.

    This situation sucks !!!

    What seems to be driving this 'movement' are new criteria imposed by mortgage lenders and insurance underwriters which classify the 'risk' of a sub-division ( thus setting mortgage interest rates and insurance premiums for that sub-division ) according to the ratio of owner occupied homes to total homes. If rental units rise above a certain percentage, the 'risk' classification is increased. Also, gov'ts tend to support this 'movement' because it keeps corporate landlords from changing the character of neighborhoods, and also supposedly favors low income / 'first time' home buyers ... via lower real estate prices due to corporate and private 'landlord' buyers being removed from the pool of potential buyers. As such, the probability of successfully 'fighting' the imposition of a maximum % rental unit rule in court is 50:50 at best. See

    Or put another way, a maximum % rental unit rule provides existing sub-division homeowners with lower refi interest rates, lower insurance costs etc. A maximum % rental unit rule also provides for a lower home resale value ... but that's typically not a big issue for homeowners who intend to live in the home they own for a long time. But for a private 'landlord' owner like yourself, being prevented from renting the property, and being faced with a significant reduction in the resale value of your property, is a 'double whammy' of bad news.
    Last edited by Melonie; 05-15-2015 at 11:23 PM.

  10. #7
    Banned
    Joined
    May 2008
    Posts
    4,980
    Thanks
    3,072
    Thanked 3,517 Times in 1,922 Posts

    Default Re: need help about rental

    ^ That's not what's driving the movement. They've always been asholes there. My two other homes are in Hoa and nothing like that stupid little sub division with a bunch of older peopkle with sticks up their ass not wanting younger people ruining the neighborhood. Any ways. I don't think my tennants will stay. I forgot I got a call on my way home ( in between going back) and zero sleep from someone verifying their rental history with me. That was about 6 weeks ago. I did not get back with the man. I erassed the message when I got back and was going to. Maybe they didn't get the place. I shouldn't say that but it would be good for me. I also thought of lerring my daughter live there or lie and say whomever is a familly member. ould they know? I will at least get a consult. I do remember when I built this house the builder didn't get the covenants here and drew the house 5 feet too far back. i went to a hearing and won but the neighbors were so rude and made me cry I just built it correctly because the one gentlemen on the board said I wouldn't be able to add a pool later and at that time I wasn't sure if I would. maybe I can request a meeting with the county since they've exceeded the 5% anyways and I know for a fact on my culdesac it's just me and the guy across the street renting. I also read that the ones owned by the HOA are exempt. Really. Because I pay dues so we all are the HOA.

  11. #8
    God/dess whirlerz's Avatar
    Joined
    May 2004
    Location
    Midwest
    Posts
    27,134
    Thanks
    55,898
    Thanked 26,028 Times in 13,271 Posts
    Blog Entries
    1
    My Mood
    Aggressive

    Default Re: need help about rental

    Hope you can get it worked out in your favor, Michelle.


    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

    -Eartha Kitt

  12. The Following User Says Thank You to whirlerz For This Useful Post:


  13. #9
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: need help about rental

    I also read that the ones owned by the HOA are exempt. Really. Because I pay dues so we all are the HOA.
    Not meaning to be argumentative, but you are 1/30th of the HOA. From your comments, it would appear that 51% of the HOA support a maximum % rental unit rule. Generally speaking, so do local gov'ts, local courts, banks, insurance underwriters, etc. As for HOA owned homes being exempt from rental restrictions, from the standpoint of the majority of HOA members ( and arguably the gov't / courts etc. ), this is a just and reasonable rule because confining as many rental units as possible to HOA control essentially provides the HOA with a means of 'vetting' prospective tenants for compatibility with the neighborhood. This is opposed to individual homeowners being allowed to rent to tenants without such 'vetting'.

    Please understand that I'm agreeing with you 100% that this particular HOA is 'screwing you' big time. I also understand that you'd love to find a way to stick it up their collective a$$ in return. But what I'm trying to point out is that, as a matter of court precedent, as a matter of 'public policy' etc. the HOA's position is more likely to carry the day than your position as an 'absentee landlord' if a legal battle develops. As such, it's only prudent for you to consider what you might gain versus what you might lose by 'lawyering up' and attempting to fight this versus simply selling out before the market price of your house falls any further.

    According to a prominent HOA attorney from my earlier link, here are HOA restrictions which the courts have upheld as just and reasonable ...


    (snip)Forms of Restrictions

    Homeowner associations have adopted a wide range of restraints, restrictions and controls on rentals and leasing. These include:

    (1) Registration of tenants and their vehicles.

    (2) Minimum lease terms, e.g. six (6) months.

    (3) Mandatory lease provisions obligating the residents to comply with the governing documents and granting the Association the power to evict tenants for violations.

    (4) Association discretionary approval or disapproval of prospective tenants, sometimes coupled with a "right of first refusal" to provide a substitute tenant on the same financial terms.

    (5) A maximum percentage of rentals in the subdivision sometimes accompanied by a waiting list or lottery procedure and a "hardship" exception.

    (6) A prohibition against a unit being leased out more than once by each owner.

    (7) Complete prohibition of leases and rentals. (snip)


    The same attorney also points out that the initial use of 'grandfathering' by a HOA is a common means of securing 51% support to enact new limitations on rentals and leases. Obviously, over time, as existing tenants leave and 'grandfathered' rights to unrestricted rentals and leases are lost by the homeowners, the HOA is eventually able to achieve it's objectives ... reducing the maximum percentage of rental properties within the subdivision below the necessary threshold to achieve 'low risk' status with mortgage lenders and insurers, as well as the 'vetting' of all tenants which remain regarding their compatibility with the neighborhood. And that objective is typically supported by not only 51% of HOA members, but also by the 'public policy' of local gov'ts ( i.e. affordable housing for 'first time' home buyers ).

    I did some checking, and I'm told that the FHA's threshold for 'low risk' status is now a maximum of 30% rental properties. At 13 out of 30, your subdivision is over that 'low risk' threshold. Until your HOA reduces the number of rental units down to 9 out of 30, new mortgage / refi interest rates and homeowner's insurance premiums will be higher than 'necessary'. If this comes down to a court battle, the HOA can undoubtedly point out that allowing you to continue to rent out your house would in fact create increased costs for all other HOA homeowners in the subdivision, i.e. giving you 'preferential' treatment at the expense of others.

    Also, in regard to 'hardship' exemptions, these are typically limited to cases where failure to grant such an exemption would likely result in the homeowner abandoning the property or 'dumping' the property at a vastly reduced price ... both of which would have negative consequences on the neighborhood / other HOA homeowners. Typical requirements for a 'hardship' exemption are a HOA homeowner's loss of a local job with necessity to relocate ( with potential 'dumping' of the property if it can't be rented out until a suitable buyer is found who is willing to pay a reasonable price ), or an impending personal bankruptcy ( with associated foreclosure / abandonment of the property ) in the absence of rental income, etc.
    Last edited by Melonie; 05-16-2015 at 01:06 AM.

  14. #10
    Banned
    Joined
    May 2008
    Posts
    4,980
    Thanks
    3,072
    Thanked 3,517 Times in 1,922 Posts

    Default Re: need help about rental

    Well my wrist would be considered a heart ship. I'm going to have to argue your point they did it because it'll make interest rates rise and ins. That's not the case...I've also done some research and it's hard to add changes to a policy set in place since 91. I'm still going to go to the news and a lawyer. I've seen people win for less regulations when they go on tv. People hate HOAS especially here.
    Edit too add: my tenant just called. Their actually moving out june first instead of july. They're still paying though. Ugh!!!

  15. #11
    Banned
    Joined
    May 2008
    Posts
    4,980
    Thanks
    3,072
    Thanked 3,517 Times in 1,922 Posts

    Default Re: need help about rental

    OH and she also called bullshit on 15 houses being rented.

  16. #12
    Banned
    Joined
    May 2008
    Posts
    4,980
    Thanks
    3,072
    Thanked 3,517 Times in 1,922 Posts

    Default Re: need help about rental

    I just found something saying forst mortgegees must approve it. I didn't. I'm just going to an attorney and tv. Fuck this.

  17. #13
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: need help about rental

    ^^^ best of luck Michele. I agree that if you can draw some embarrassing local media coverage that it will at least send the HOA a message that you're not f#&king around !

Similar Threads

  1. Replies: 3
    Last Post: 07-12-2012, 04:38 PM
  2. I've never seen this in a rental application...
    By cinammonkisses in forum The Lounge
    Replies: 33
    Last Post: 04-06-2007, 12:25 PM
  3. Miami rental
    By onyx757 in forum For Sale & Wanted
    Replies: 1
    Last Post: 02-11-2007, 07:20 PM
  4. Rental Cars?
    By PaigeDWinter in forum The Lounge
    Replies: 21
    Last Post: 09-21-2006, 11:09 PM
  5. Worst Rental Ever.
    By Lilith in forum The Lounge
    Replies: 7
    Last Post: 06-16-2004, 07:15 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •