Condo #1 HOA – trying to limit investors

I received a letter from the HOA with the following proposals. They are having a meeting to discuss the proposal below. My comments are in red.

LEASING OF UNITS – PROPOSED POLICY
The intent of this change in policy is to help insure the success of the owner-tenant relationship, and to contribute to the successful operation of the Association.

1. Give prior notice to DCH of intention to lease, execute lease rider (see attached) with the lease, and deliver copy of signed lease and lease rider to DCH prior to occupancy. I’m fine with this.

2. Notify DCH of all current occupants including name(s), phone number of the unit, the total and license plate number of vehicles used by the occupants, and the number and type of any pets. I’m fine with this.

3. Prospective tenants must submit to a personal interview with the Board or its designated committee prior to occupancy. This is frickin’ retarded, I don’t see how this will pass because I can’t see them declining a tenant. However, if you read the statement it doesn’t say anything about them making a rental decision. It just says they have to submit to an interview, which I’m thinking is more of a introduction to the building meeting.

4. All leases must be in writing for a period of not less than two years. All leases must conform with, and make specific reference to, the legal documents of the Association. No subleasing without submitting to the aforestated rules. I think this will limit the pool of potential tenants.

5. Tenants must be given a copy of the legal documents and any rules or regulations and should be informed that they are obligated to obey the provisions of the documents. They also should be informed that part of their rent is used to pay the Association assessment on the unit and what the assessment covers. Tenants must sign the lease rider acknowledging receipt of copies of all legal documents. This is fine.

6. Security deposit of no less than two months rent is required, with one month’s rent submitted to the Association to cover damages. Any unused balance will be returned after an inspection of the property within 30 days of move-out. I just found that this is illegal. Deposit cannot be more than 1.5 months. I don’t understand the “inspection of the property” part, why are they inspecting my unit?

7. Credit and criminal background checks required prior to occupancy and paid for by unit owner. I think the HOA should pay for this. It the check does show poor credit or criminal history, what then?

8. Unit owner obligated to pay all condo fees imposed, including any costs or damages incurred by their tenant. This is fine… if this is the case, why do they need to hold any deposit from the tenant.

9. Any violations of the Declaration, By-laws or rules and regulations may result in a flat or daily fine or in more serious situations, eviction proceedings. All fines, costs and legal fees will be charged to the unit owner. This is fine.

10. Non-refundable move-in fee of $250 If they are going to charge this, they should pay for the credit and criminal check

11. Moves are by appointment only and must be scheduled in advance with DCH. Failure to do so may result in denial of access to the building. This is already the case

About Kenric

My blog about living life to the fullest by generating passive income through real estate, business and online investments.
This entry was posted in Real Estate. Bookmark the permalink.