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It should come as no surprise that many people are now looking to rent property after having lost their homes or having had their credit negatively impacted during this economy. Communities that might not have traditionally allowed renters might now be seeing an increase in illegal renting.
For some communities, these renters could mean the difference between a unit owner being able to maintain control of the property and continue paying maintenance or foreclosure.
Here is most of what has been proposed to our Association… Based on the information below should we allow renters?
Proposed amendments restricting for leasing is as follows:
1. Prevent leasing within a certain time period after taking title to a unit. This could be either 6, 12 or 24 months. The basis behind this kind of amendment is to discourage investors from purchasing in the community;
2. Set a minimum lease term and a maximum lease term; no less than 6mths no more than 2yrs
3. Prevent leasing more than a certain number of times each year (usually one or two). The basis behind this type of amendment is to encourage long-term leases as opposed to transient monthly rentals. The board should give themselves some leeway to allow hardship exceptions to this restriction in the case of a tenant dying or moving out within a short period of time after signing the lease;
4. Require a common area security deposit (cannot exceed more than one month’s rent in condominiums); $400.00 deposit must be reimbursed at end of lease term if no damage occurred. If damage does occurs the property manager must note and take pictures of damages, which will be presented to the board, unit owners and renter.
5. Required screening process. $100 non-refundable payment for screening this amount includes the following: background check, and personal interview; (If renter is approved this will also cover ID’s and laundry card.
6. Add “for cause” language which would allow the association to deny potential renters for particular reasons; i.e. criminal history, history of creating a nuisance in other communities, failure to fully or accurately fill out the application, etc.;
7. Require owners wishing to lease their units to use only a board-approved lease form or lease addendum, which would allow the association to collect rent directly from the tenant in the event the owner(s) becomes delinquent on maintenance and to empower the association to evict troublesome tenants;
8. Add language that would allow the association to specially assess the owner for any damage a tenant may cause to the common elements over and above the security deposit;
9. 15-20% cap on the number of total rentals in the community at any one time.
10. Non- Delinquent unit owners will have first right to rent their unit with board approval.
11. Delinquent unit owners may rent, however they must agree in writing to have their maintenance current while renter resides in unit and pay an extra $25.00-$50.00 a month toward there delinquent balance. If they default refer to line #7
12. Only current unit owners who vote yes will be allowed to rent their unit(s) with board approval.
13. Unit owner that vote no or have not obtained board approval and are caught renting will be fined $500.00. If unit owner does not evict tenant within 45days from 1st fine, unit owner will be fined $20 a day until tenant has moved.
In a condominium, any changes affecting “rental rights” will apply only to new owners who take title after the amendments have been recorded and to existing owners who voted “yes” on the amendments.
Section 718.110(13) Any amendment restricting unit owners’ rights relating to the rental of units applies only to unit owners who consent to the amendment and unit owners who purchase their units after the effective date of that amendment.
With that said, What are your thoughts???
Here is some additional information you might want to know. Polynesian Gardens Condos did allow renters in the past . The Condominium docs were amended on 2003.
Polynesian Gardens Condo Association Amended Renters Docs
The condominiums needed a majority vote (50+1) from unit owners to amend these docs in April 2003. That means they needed a total of around 242 YES votes from unit owners in order to legally amend our docs.
Here’s my question- Did they really get those votes?
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