Ott & Associates Co., LPA - Attorneys at Law

216-771-2600

Contact Us | Directions

Articles

Overrun by Renters!

Association members who live among many tenant-occupied units are often asking what they can do to increase owner-occupany at their associations. Some tenants are model citizens, while others were never screened by the owners who decided to rent to them, and subsequently, the tenants become thorns in the association’s side.

Investors (landlords) at times fail to adequately inform their tenants of the rules and regulations of the association, and almost act as if the association were the landlord, allowing the landlord could just sit back and collect the rent. As one developer put it, in a condo building where there were over 10 units and all were tenant-occupied, “there’s no one running the asylum”. That, of course, leaves the board to do the dirty work.

The simple solution to this problem is to file a “No Leasing Amendment”. Easier said than done. Filing this amendment will require a vote of the ownership, and if the owners are primarily investors renting out their units, then there is a small likelihood of that amendment passing. Even if an amendment is passed and recorded, in most instances, it applicability will not be retroactive as to the current tenant-occupied units, it will only be applicable to current owner-occupied units or future owners.

Once the “No Leasing Amendment” is passed and filed, there is no guarantee the amendment will be adhered to. If a unit is owned by a corporation, its designated corporate representative may live in the unit. The representative can be almost anyone. Out of state investors who buy properties with the intention of renting them often ignore association restrictions requiring owner-occupancy (they also often ignore the need to pay maintenance fees until a foreclosure is filed by the association).

The association has the right to evict tenants of owners who are non-compliant with owner-occupancy restrictions. However, this may prove to be time-consuming, as it will require a court proceeding. Associations with several owner-occupancy violations are often so overwhelmed, they don’t know where to start. The idea is to set a precedent; let owners know that the association is going to file evictions.

The simple solution to this problem is to file a “No Leasing Amendment”. Easier said than done. Filing this amendment will require a vote of the ownership, and if the owners are primarily investors renting out their units, then there is a small likelihood of that amendment passing. Even if an amendment is passed and recorded, in most instances, it applicability will not be retroactive as to the current tenant-occupied units, it will only be applicable to current owner-occupied units or future owners.

Once the “No Leasing Amendment” is passed and filed, there is no guarantee the amendment will be adhered to. If a unit is owned by a corporation, its designated corporate representative may live in the unit. The representative can be almost anyone. Out of state investors who buy properties with the intention of renting them often ignore association restrictions requiring owner-occupancy (they also often ignore the need to pay maintenance fees until a foreclosure is filed by the association).

The association has the right to evict tenants of owners who are non-compliant with owner-occupancy restrictions. However, this may prove to be a time-consuming, as it will require a court proceeding. Associations with several owner-occupancy violations are often so overwhelmed, they don’t know where to start. The idea is to set a precedent; let owners know that the association is going to file evictions.

© 2008 Ott & Associates Co., LPA

Contact Us | Directions