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HOA demands rental application

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Latest post Mon, Nov 10 2014 9:02 PM by adjuster jack. 4 replies.
  • Mon, Nov 10 2014 10:16 AM

    • Brick house
      Consumer
    • Not Ranked
    • Joined on Mon, Nov 10 2014
    • TN
    • Posts 2

    HOA demands rental application

    thank you in advance of any help with this issue.

     

    I purchased a single-family, residential rental property about a year and a half ago in North Texas. I received a letter the other day from the HOA stating that it now requires an application to rent and a $300 fee. They also are asking for each tenant to have a background check including criminal and sex offender with a $250 fee attached to it. The letter also stated that it will limit the amount of rentals in the HOA to 20%.

    I completely understand why they want to do this. I am wondering if they had any jurisdiction to force anyone out as a landlord?  I also I'm curious to know if they can charge an application fee and then deny the ability to rent? If I don't submit my application and fee in the allotted time and don't make the 20% cut can they legally keep me from renting?

    I might be willing to pay some fees, as in a license but I don't feel it is legal to have to apply for something that I already own and operate. I have sought out legal advice but can't afford the $300/hr advice so that is why I am here. If you are willing to help send me a pm and I can give you all the details and documentation. 

     

    Thanks Mike

  • Mon, Nov 10 2014 11:39 AM In reply to

    Re: HOA demands rental application

    Did you read the CC&Rs and by-laws before purchasing the unit?

    I'll bet you didn't.

    I strongly suggest that you study them very carefully because what the HOA can and cannot do is addressed in those documents and those documents generally give the HOA a great deal of power to potentially make your life miserable and your unit unrentable.

    Once you have studied the documents if you still don't understand what the HOA can and cannot do, I suggest you find the $300 per hour to consult an attorney. That's just one of the costs of being a landlord if it's necessary.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Mon, Nov 10 2014 4:55 PM In reply to

    • Brick house
      Consumer
    • Not Ranked
    • Joined on Mon, Nov 10 2014
    • TN
    • Posts 2

    Re: HOA demands rental application

    I did go over the the hoa rules prior to completing the purchase. This was just passed in the last few weeks and a complete surprise to us. We were never notified of any type of voting to change the laws and I have not seen anything in writing or corespondence about discussing changes. 

     

    Thanks Mike

  • Mon, Nov 10 2014 6:07 PM In reply to

    Re: HOA demands rental application

    Here is a link to the Texas Residential Property Owners Protection Act (Texas's HOA law).

    It requires notice to property owners of board meetings, including the general subject of the meeting, but it gives several options for how that notice is to be given.  One of those options is to post a notice somewhere in the common areas, or a prominent location on private property within the HOA, at least 72 hours ahead of time.  If they did that, you probably didn't see it, if you live in Tennessee.

    One avenue of research you can pursue is whether the process the HOA used to make these changes to the rules was itself proper according to the association governing documents.  In my HOA, the Board can make changes to the Rules and Regulations, but it takes a supermajority vote of the entire membership to change the Covenants.

    Another thing to check into:  are you sure you understand exactly what the changes mean?  Do the new requirements apply immediately to existing landlord-tenant relationships, or are they intended to kick in the next time a lease comes up for renewal, or even the next time you solicit a new tenant?

    If the changes were made using the correct process, and they will put you in an impossible situation where you must choose between violating the HOA rules and violating the lease you signed with your tenant, then I think you have little choice but to consult a Texas real estate attorney knowledgeable about both HOA law and landlord-tenant law.

  • Mon, Nov 10 2014 9:02 PM In reply to

    Re: HOA demands rental application

    Brick house:
    This was just passed in the last few weeks and a complete surprise to us. We were never notified of any type of voting to change the laws and I have not seen anything in writing or corespondence about discussing changes. 

    As Karen suggests, you might have some recourse if the change wasn't made properly.

    I suggest you get a copy of the minutes of whatever meeting were held regarding the change along with copies of any notices that were posted.

    If you have an existing tenant in the home you might not have to comply until your current tenant moves out and you rent it again. Check that out, too.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
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