Below is a helpful tip from the Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC regarding excessive rentals in HOA comunities.
QUESTION: Our community is only 6 years old. Investors came in, rented their property, and left. As it stands now, out of 350 homes, 60% are rented and the other 40% are owned.
Renters don’t care about the property and have little sense of community pride. When we send violation letters out, we’re sending them to the homes that are rented, because that’s the address the owner left with the HOA.
Investors are renting for profits and not for the stability of the community. What can our HOA do to decrease the level of renters occupying these homes? -Geoffrey G.
RESPONSE: With 60% of your community as rentals, I don’t think there is a solution. I’ve seen too many associations hit the 40%+ mark and never recover..
AB 3182:. Amending your CC&Rs to limit rentals will be impossible. All the investors will vote against it. Moreover, AB 3182 passed the Senate and Assembly earlier this week and will wreak havoc on community associations if signed into law. It opens the door to even more rentals in HOA communities. I will report on it in our next newsletter.
No Solution:. A high percentage of rentals is the death knell of a community. There will be a steady decline in the upkeep of homes, opposition to dues increases to build strong reserves, ongoing problems with rules enforcement, and a negative impact on property values. I know it’s a pessimistic view. You can either grit your teeth and do your best to hold the line or sell your home and get out while the community is still new and your property values high.
For more knowledgeable information regarding the business of HOA’s, visit: The Davis-Stirling.com Newsletter
DISCLAIMER. The Davis-Stirling.com Newsletter by ADAMS | STIRLING PLC provides commentary only, not legal advice. For legal advice, you’ll need to hire legal counsel. You can hire ADAMS | STIRLING PLC; Keep in mind they are considered corporate counsel to associations only.
