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HOA association, possible problem.

N

NetWareHead

THAT guy
I own some property which is governed and subject to HOA bylaws. This is rental investment property that I originally bought for my first home but moved out and now rent it out. The problem here is that my association has been extremely lax about informing property owners about the bylaws as well as enforcing them. I got a notice the other day in the mail that stated all leases between property owners and tenants must also have a rider from the association (an addendum to the lease) attached and this must be signed by the tenant and landlord and sent to the association office. It just makes sure the tenant is aware of the association rules and uses its facilities appropriately as well as a few other minor points.

Now I don't have a problem getting my tenant to sign this rider to the lease, as a matter of fact he already did when I met with him last night. The other issue that concerns me is that there is a penalty for non-compliance. Every month that my tenant has not signed this rider to the lease, the owner (me) on the hook for penalties which will accrue every month. Admittedly I did not know this and regardless of whose fault it is, other property owners are in the same boat as me. We all figure that the office must have done an audit and discovered vast amount of rented properties and no riders signed for those leases. Many of the tenants here I've spoken were also approached by their landlords and asked to sigh the riders, same exact situation as myself and my tenant.

Now, I'm faced with a dilemma. The association also wants a copy of the lease between my tenant and I. And on that lease it will show that my tenant's term started back in December. Therefore, I have been 7 months out of compliance and potentially liable for 7 months worth of fines (hundreds, maybe thousands of dollars of fines). The evidence of my non-compliance is right there on our lease. I am thinking of modifying the lease signed between my tenant and I and giving a copy of this phony lease to the association office, showing that the lease started this month, in effect erasing my time of non-compliance.

Is it false and dishonest? Yes it is. Will it work? I'm not sure. Is it my fault I did not know about this laxly enforced, obscure rule or is it the association's fault for failing to notify and enforce it? I'm not sure about that and I find other owners are in the same boat as me. They have lawyers on retainer and I don't and if this evidence can be swept under the rug with no consequences to me, I'd like to do that. Ideally, this is a fight I'd like to avoid with the association. Therefore, please lets not turn this into a witch hunt or moral bashing thread. I'm hoping this thread can stay civil and I'm looking for opinions or for someone to tell me if this is a good idea or if it will get me in potentially deeper trouble. I haven't told my tenant about this either, wondering if I need his cooperation. Thanks...
 
Hell I'd be tempted to have your tenant sign a form and date it to December.

Of course then you find out the policy went into effect in February.
 
Home Owners Association association? Now that would be even more of a headache.

EDIT:

Actually read the post now. I'd just tell them you didn't know, and you took action as soon as you found out.

If they try to slap you with a ton of fees consult a lawyer, I can't imagine they'll get you for anything.
 
Last edited:
Turin39789 said:
Hell I'd be tempted to have your tenant sign a form and date it to December.

Of course then you find out the policy went into effect in February.
Click to expand...

Well even if the tenant backdates a letter to show the rider was signed in December, I'd still be out of compliance since the association did not receive that letter.
 
Turin39789 said:
Damn post office. You sent it right around the holidays.
Click to expand...


Lol nah I cant do that. I need a more concrete way to get me off the hook. They are already pissed at me for a notice I never received and a bill I was supposed to pay. They sent it to an old address or never sent it to my updated address. I had to fight tooth and nail with them and I think they won't believe this has happened a second time around. They imposed penalties on me and I simply refused to pay them until they let me off the hook. I feel that they are looking for blood this time and I can't give a BS excuse like that.
 
Tweak155 said:
Home Owners Association association? Now that would be even more of a headache.

EDIT:

Actually read the post now. I'd just tell them you didn't know, and you took action as soon as you found out.

If they try to slap you with a ton of fees consult a lawyer, I can't imagine they'll get you for anything.
Click to expand...

These people are a pain to work with and busybodies at best. I'd rather not incriminate myself at all because I already went through a similar situation like this with them (failure to notify me, sent to wrong address) and the unpaid bill and fine added up to 200-300 dollars. Now that I am on the hook again for potentially thousands and given my history with these people, this is a fight I want to avoid if possible. I need to tread very carefully here
 
Do they know about your tenent or even have an idea that he's a tenant?

What exactly did they say? They just want a copy of all current leases? If so, you and your tenent create a new lease that starts this month. It's the current lease. You are merely providing them with exactly what they asked for. Make sure to include more information on the HOA that you didn't before. If they come back and know about the previous lease, just tell them you had to update it to conform with the HOA policies.

Now, if they specifically state they want all leases that have been active over the past however many months/years, that's a different story. I'd avoid any sort of deception or lies, as that will come full-circle and not worth the trouble.
 
Have your tenant sign a new lease from today to the end of the first lease. Turn this one in.
 
Your HOA is trolling for $$$.

Also, I still don't understand the outrage over HOAs - everyone knows they can be a nightmare,... why get involved with them?
 
HOA and rental property shouldn't be in the same sentence. You will have nothing but problems. They will come up with ways to make your life miserable. It is not in the property owners interest to have rental property in the area /building because it is devalues other properties.
 
GotIssues said:
Do they know about your tenent or even have an idea that he's a tenant?

What exactly did they say? They just want a copy of all current leases? If so, you and your tenent create a new lease that starts this month. It's the current lease. You are merely providing them with exactly what they asked for. Make sure to include more information on the HOA that you didn't before. If they come back and know about the previous lease, just tell them you had to update it to conform with the HOA policies.

Now, if they specifically state they want all leases that have been active over the past however many months/years, that's a different story. I'd avoid any sort of deception or lies, as that will come full-circle and not worth the trouble.
Click to expand...

No idea how they found out about my tenant. When I moved out, I notified them of my new mailing address. My place stayed vacant for a year while I renovated, but when I got a tenant I never notified them either. Either they found out somehow, or just assume I have a tenant since I don't live there anymore.
 
Macamus Prime said:
Your HOA is trolling for $$$.

Also, I still don't understand the outrage over HOAs - everyone knows they can be a nightmare,... why get involved with them?
Click to expand...

I got the unit at a great price, was a young kid when I bought my first house and didn't need the expense and hassle of maintaining the outdoor ground by myself. Honestly, in the 7 years I've owned the place, this is the only "problem" I've had with the HOA.
 
Update:

All of this ended up being unnecessary. The HOA has granted amnesty to all owners not in compliance as long as they send the association the proper paperwork. I'm assuming since they did not properly handle affairs on their end, they won't go after owners who were not properly notified of non-compliance.
 
oldsmoboat said:
Have your tenant sign a new lease from today to the end of the first lease. Turn this one in.
Click to expand...

Sounds like a winner. If you want you could backdate it a month or two so they don't look at the date and send something back saying they have proof he was a renter before the start date of the lease.
 
NetWareHead said:
Update:

All of this ended up being unnecessary. The HOA has granted amnesty to all owners not in compliance as long as they send the association the proper paperwork. I'm assuming since they did not properly handle affairs on their end, they won't go after owners who were not properly notified of non-compliance.
Click to expand...

An HOA being reasonable? Unpossible!!!
 
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