Management Articles
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Harmony By Design
One of the most important aspects of a homeowner association is the ability to effectively control the look and feel of the community. While this power may conflict with a particular member’s desire to customize his home or condo (looove that electric chartreuse paint color!), the concept is strongly supported by the majority and a condition agreed to by all members before they bought. Indeed, that’s an important reason many opt for HOA living.

While most subdivisions have CC&Rs (Covenants, Conditions and Restrictions) which dictate what members can do with their property, when push comes to shove, a lawsuit is the only way to deal with someone that is bound and determined to violate them. Since most neighbors have neither desire or money to sue one another, subdivision CC&Rs are pretty much like a lock on a door (only keeps your friends out).

Because of inability to control design standards, subdivision property often experiences declining market value as the original design character erodes. In HOAs, though, the Board can enact an Architectural Design Policy and a process for reviewing and approving alteration or addition requests. In fact, the Board has the duty to set clear design guidelines and be ready, willing and prepared to enforce them. The Board is the Defender of Market Values, and like the Marines, must be faithful and prepared to do the dirty work.

In the case of Architectural Design Restrictions, forewarned is forearmed. If guidelines are not clearly defined already in the governing documents, the sooner they are, the better. To keep owners mindful of the issue, it’s good to have a statement that appears in all newsletters like:

"Good curb appeal and high quality of construction are fundamental to sustaining high market values in our community. The Board is entrusted with maintaining design standards that address that very important goal. To that end, all exterior alterations or additions must be preapproved by the Board. The Architectural Design Policy is available at the HOA website and explains the approval process as well as approved standards for paint colors, roofing color/type, fences and decks. If your request conforms to approved standards, it will be "fast tracked". If you have a request not covered by standard, it will take up to thirty days (depending on the complexity of the installation) to complete the review process. Please plan accordingly."

An important part of the Architectural Design process is helping owners to get the job done right. There is a tendency to rely on a contractor’s salesmanship rather than his credentials. It’s the HOA’s job to ensure that the finished product lives up to it’s advertising. So, making sure that the homeowner’s contractor is licensed, bonded and insured is the first step. Clearly defining the job by specifications and materials comes next. Permits, if required, are third. By requiring each request to provide this information, the HOA is looking out after the homeowner’s best interests as well as those of all the other members.

Has past laxness allowed the design ship to meander? Whether your HOA is a single family planned community or a condominium, keeping a sharp eye on exterior design issues is critically important. It’s rarely too late to bring it back on course. Keeping design considerations under control will help harmonize the community.

See a sample Architectural Design Policy and Architectural Change Request Form in the "Policy Samples" and "Forms" sections.   BACK 


On the Record
Keeping good homeowner association records is not only important for the present but for the future and past as well. HOAs are legal entities with significant power over their members. As such, the governing documents, rules, regulations, policies, resolutions, newsletters and minutes should be organized and accessible because they outline and discuss how the HOA impacts the members’ lives. Financial records memorialize the handling of the member contributions and help the Board maintain balance in this most important aspect of HOA business. Then there are assorted documents that fill files with correspondence, contracts and other business details.

Prospective buyers have the right to inspect most records and, indeed, it’s in the best interest of the HOA that they do rather than be duped into buying under false pretenses. An uninformed buyer is usually a contentious or uninvolved owner. Neither one is good for the community. So, to encourage informed and concerned people to buy in, information must be available that any informed buyer would want to know. While making records available may seem fruitless, tedious and expensive to some, in the end better members will result. Or at least, the HOA will have a sound defense against the "I didn’t know about (fill in the blank)" argument that uninformed buyers like to make.

There are literally dozens of records that should be organized by category:

  • Correspondence
  • Mailing Lists
  • Management Notices
  • Newsletters
  • Resident Manuals/Handbooks
  • Annual Budget
  • Assessment Information
  • Auditor Reports
  • Balance Sheets
  • Bank Statements & Reconciliations
  • Bank Deposit Slips
  • Cancelled Checks
  • Financial Statements
  • Income Tax Returns
  • Inventory Lists
  • Investment Account Statements
  • Invoices-Assets
  • Invoices-Supply/Services
  • Petty Cash Vouchers
  • Purchase Orders/Journal
  • Reserve Study
  • State & Federal ID Numbers
  • Supply/Service Invoices
  • Articles of Incorporation
  • Bylaws
  • Declaration
  • Resolutions
  • Rules & Regulations
  • Insurance Accident Reports
  • Insurance Claims-Open/Settled
  • Fire Inspection Reports
  • Insurance Policies
  • Safety Records
  • Agent of Record Letters
  • Annual Report-Corporation
  • Correspondence
  • Legal/Litigation Files
  • Blueprints & Specifications
  • Contracts
  • Correspondence
  • Plat Maps
  • Warranties-Expired/Unexpired
  • Work Orders
  • Election Ballots
  • Meeting Notices
  • Meeting Proxies
  • Meeting Minutes
  • Committee Reports ADA Complaints (Disability)
  • Benefits, Pension, Profit Sharing, Insurance
  • Employee Applications
  • Employee Expense Reimbursements
  • Employee Files
  • Employee Payroll Records
  • Formal Discipline Actions
  • Leave Requests
  • Medical Records
  • OSHA Records
  • Procedure Manuals
  • State & Federal Unemployment Tax Records
  • State & Federal Withholding Taxes
  • Time Cards

Whew! The list is mind boggling. Fortunately, not all items apply to all HOAs. But there are legal and practical guidelines on how long each kind of record should be kept. For example, the IRS has guidelines for records that are related to tax payments. Other kinds of records need only be kept as long as they are applicable. Others, forever.

To ensure you stay up on the records, get them organized and have a clear understanding of how long you should hold them.

For a Record Retention Checklist, see the "Planning Tools" section.   BACK 


Facilitating the Facilities
Many homeowner associations have common facilities to share. Some are extensive and some are modest. Some enjoy beautifully appointed clubhouses with pools, exercise equipment, kitchens, big screen TVs, saunas and other amenities just waiting to be enjoyed. They are made possible by each owner contributing a small part of the total cost to support them.

Each HOA that has these assets is challenged to make good use of them. Most pretty much distribute keys and lay out the ground rules for use. The facilities get used from time to time but usually sit vacant, quietly becoming obsolete. As years pass, light use doesn’t wear out the carpet, furniture, paint colors, light fixtures and drapes. They just take on that "nightmare from a bygone era" look and get less and less use as time pass. How can the HOA justify updating the place when so few use it?

These common amenities should be a source of pride and a value builder for the owners’ home prices. Instead, outdated facilities cause an embarrassment and home value reduction. May it never be! Protecting, polishing and promoting the HOA facilities serves a number of worthy purposes:

  • Building community. Bring folks together with meetings, Casino Nights, sporting events (water polo?), icebreakers, book and film reviews, dances, potlucks, wine tastings, community sales, cooking classes, craft classes, weddings, reunions and more. The variations are only limited by imagination.
  • Source of Pride. First class amenities swell the chest of the lucky residents.
  • Enhancing Investment. Having a value that the competition doesn’t is money in the bank. Like waxing a car, the better it looks, the better it sells.
  • Revenue Enhancement. Members can hold private parties and functions that meld well with conveniently located facilities. The HOA can charge a usage fee to supplement homeowner fee revenue.

Taking full advantage of your facilities takes a plan. It’s the perfect opportunity for a Facilities Management or Social Committee to plan events throughout the year and promote rentals by members. The same committee can do inspections to ensure the facility is kept clean and in good repair.

Take advantage of the facilities at your disposal and watch neighbors become friends, home values grow and greater harmony in the community. This opportunity is simply too good to pass up!

For a sample Facility Reservation Form, see the "Forms" section.    BACK 


Target, Process & Objective
The lack of communication is often one of the biggest complaints that many boards receive. Yet, good communication is a fundamental imperative of every homeowner association. If the board is to succeed with its objectives, it needs cooperation from the members. So how is this cooperation best obtained?

The board needs to identify priority targets to aim for. Hitting each target requires a process to achieve a positive objective that will improve the the HOA. Here are some examples of priorities:

A. Target: Long Range Planning. Reserve studies provide a multi-year projection of common element repairs and replacements like roofing, painting, fencing and decks. The components all have varying life cycles and costs. Some have long lives, like roofs, and others have shorter lives, like paint. The reserve identifies all of the common element components, predicts useful lives and current cost of repair or replacement. With this information, a schedule and funding forecast can be generated to assist the board in planning.

Process: Hire a professional reserve study consultant and follow the recommendations. See www.apra-usa.com  for options.

Objective: To maintain the property in best condition to maximize values.

B. Target: Stewardship. The board is entrusted with two things that mean a lot to HOA members: their money and their homes. Stewardship is a form of fiduciary responsibility. Good stewards handle the property of others with extreme care, making sure it is protected from forces that will do it harm or diminish its capacity. This requires careful handling of money and property.

Process:
1. Review and revise the HOA budget each year several months before the beginning of the new fiscal year.
2. Increase HOA fees a minimum of the inflation rate and more if expenses indicate.
3. Keep funds segregated according to whether they are for operating (normal annual expenses) or reserves (cyclical repairs or replacements).
4. Get three qualified bids on large contracts and projects.
5. Perform regular preventive maintenance.
6. Focus on value, not price.

Objective: When it comes to money, the board should not penny pinch by keeping HOA fees the lowest around. Lack of money diminishes services that reduce HOA member property values. Spending money prudently will maintain highest property values and member satisfaction..

C. Target. Fostering Harmony. It’s a dog eat dog world out there. It shouldn’t be like that in the HOA.

Process:
1. Only enact rules that are necessary and eliminate those that aren’t.
2. Provide for an appeal process.
3. Offer a mediation alternative.
4. Promote social events that introduce neighbors to neighbors.
5. Promote charitable events that showcase the HOA’s kinder side.
6. Promote team maintenance events like park cleanups

Objective: There is no "I" in TEAM. Find ways for HOA members to resolve conflict and promote friendships.

D. Target: Accountability. Hold members responsible.

Process:
1. Have a clear and enforceable collection policy.
2. Have reasonable and enforceable rules.


Objective:
Encourage individual responsibility through clear guidelines.

Identifying your HOA’s priority Targets, Processes and Objectives will help the board focus on what’s most important. Go TPO!  BACK 


Changing Course
Boards of homeowner associations are often challenged to change the status quo for the better. A common scenario includes a newly elected board that promises to start enforcing rules or architectural policies. Problem is, there are HOA members that like it just fine the way it is and they loudly resist the board’s proposed changes. If certain board members are single minded about forcing change, the resulting brouhaha will take center stage, the goals moved to the peanut gallery and little accomplished other than ruffling feathers. Flexibility is the key to success. Consider the following observation:

"What prevents human beings from successfully managing the natural environment and other complex systems? Dietrich Dörner, a cognitive psychologist, performed experiments and found out. Using computer simulations of complex environments, he invited intellectuals to improve the situation.

They often made it worse. Those who did well gathered information before acting, thought systemically, reviewed progress, and corrected their course often. Those who did badly clung to their theories, acted too quickly, did not correct course, and blamed others when things went wrong. Dörner concludes that our failures in managing complex systems do not represent any inherent lack of human capability. Rather they reflect bad habits of thought and lazy procedures." State of Fear by Michael Crichton

These observations point to several courses of action an HOA board might consider when endeavoring to make changes:

1. Do Your Research. If the board wants to change long standing policy, lack thereof or tradition, it’s important to truly understand why it stood so long. Don’t automatically assume that previous boards just failed to do their job. Homeowner associations have the ability to establish norms that vary if the members want it that way. So, failing to enforce rules may be the way most of the members may like it. Your HOA may have too many rules that need to be weeded out instead of enforced. So, rather than charge in to smite the offenders, consider polling the community to see just how important a new "get tough" policy is.

2. Organize Your Plan. Repointing the board takes careful planning since not every issue has the same priority. Even if the board and members are generally agreed on, say, correcting architectural violations, those violations come in large and small size, visible and not so visible. Prioritizing the plan of attack and laying out a time frame that doesn’t require the board to deal with everything all at once makes sense.

3. Do Progress Reports. As the board attacks individual issues, some will resolve quickly while others fester. Resolution is great because that reduces the number of issues. Progress reports will allow the board to celebrate its successes and refocus on remaining issues.

4. Rethink Solutions. The board has the authority to make judgment calls. Not all issues are black and white. In the case of an architectural violation, the board can compromise if it’s in the best interests of the HOA. For example, if an owner has illegally expanded a deck into the common area, the board’s order would normally be to remove it. However, if the owner has spent considerable money and a previous board granted permission (even though it had no authority to do so), the owner might mount a legal defense and be willing to go to court over the matter.

The board could expend thousands of dollars of HOA funds in legal costs and possibly lose the case or compromise by getting the owner to agree to remove the deck upon sale of the property. The compromise allows the owner to save face, the HOA to save money and ultimately get the deck removed...it just will take a bit longer than anticipated. The lesson is to not get too entrenched in one solution. Circumstances may warrant creative thinking and the board has the authority to be creative.

The board usually steers the HOA ship across calm seas with business per usual. But from time to time squalls and shallow rocks dictate a change of course. While governing documents and state laws point a direction that often works, be prepared to deviate when circumstances dictate.  BACK 


Business Judgment Rule
A homeowner association board of directors can often rely on the Business Judgment Rule when faced with a homeowners’ lawsuit over a particularly unpopular board decision. The Business Judgment Rule limits judicial scrutiny of actions of HOA boards when they act in good faith, exercise honest judgment, act with the best interests of the HOA and in an informed prudent manner.

The Business Judgment Rule serves to protect the types of decisions that boards must necessarily make in the course of fulfilling their duties. For example, in the frequently cited case of Levandusky v. One Fifth Avenue Apartment Corp., the highest New York court refused to overturn a board’s refusal to permit internal architectural building modifications requested by an owner to relocate heating pipes. An HOA rule prohibited the proposed plan, and the board decided not to approve it. Before denying the proposed modification, however, the directors consulted a qualified engineer who confirmed that while the relocation was feasible but that change in the plumbing presented risks that should be avoided if possible. Although the board could have approved the modification, the court concluded that the board’s decision fell within its discretionary power.

Another frequently cited case from California, Lamden v. La Jolla Shores Condominium Association, addressed a board’s decision to use spot treatment of termites rather than a global "tenting" approach that the member proposed. The court determined that deference to the board was appropriate where the board’s exercise of discretion in selecting repair methodologies was "clearly" within the scope of its authority and the directors acted in good faith, upon reasonable investigation, and with regard to the best interest of the community.

The Colorado Court of Appeals has also held that the business judgment rule can be used to defend against a claim for failing to enforce covenants. Colorado Homes, Ltd. v. Loerch-Wilson, the court noted that the substance of the business judgment rule requires a board to make decisions in good faith and to not be arbitrary.

What steps can a board take to comply with Business Judgment Rule parameters?
1. Comply with the governing documents.
2. Use resources like management, attorneys, engineers or other experts before making decisions.
3. Consider alternative courses of action. The board has discretion to make decisions when in the best interest of the HOA.
4. Avoid conflicts of interest.
5. Consider how board conduct will be viewed by objective observers.
6. Properly document decisions and the basis for those decisions. Put it in writing for the record.
7. Adhere to established process requirements. For example, if a response must be made to an architectural application within 30 days, that time deadline should be met.

The Business Judgment Rule has a long tradition of protecting volunteer directors who make informed decisions that someone may not agree with. The operative word is "informed". Do your research and get good advice before making judgments on controversial issues.

Adapted from an article by Orten & Hindman   BACK 


Committee Charters
Committees serve an invaluable role in assisting the board. They allow owners to participate on focused issues without committing to years of service on the board. Each committee appointed by the board should have a written charter or marching orders which defines expectations. Here is a sample charter which can be adapted to other committee functions.

Nottacare Condominium
Budget Committee Charter

I. Purpose The primary functions of the Budget Committee are to assist the board of directors in fulfilling its financial oversight responsibilities with respect to budgeting, finance and accounting procedures. The Committee will encourage continuous improvement of and adherence to financial policies, procedures and practices.

The role of the Committee is oversight. It is not the duty of the Committee to conduct audits or to determine whether the financial statements are complete, accurate and in accordance with generally accepted accounting principles. These are the responsibilities of independent auditors.

II. Organization The Budget Committee shall be comprised of three or more members of Nottacare Condominium as determined by the Board of Directors.

III. Term of Office. Committee Members shall serve for one year subject to renewal by mutual agreement of the member and the board.

IV. Meetings The Budget Committee shall meet on a quarterly basis, or more frequently as circumstances require.

V. Responsibilities and Duties To fulfill its responsibilities and duties, the Budget Committee shall:

1. Formulate a draft Operating and Reserves Budget each year and present it for approval by the board of directors by November 1st of each year. The budget shall based on a thorough review of the current year’s actual expenses, cost increases in contracts and utilities and future reserve needs.
2. Review financial reporting procedures and fraud controls annually and make recommendations to the board for improvement.
3. Review and advise the board on special assessment proposals.
4. Review and approve the annual tax return prior to submission.
5. Advise board when a CPA review, compilation or audit is indicated.
  BACK


How to Deal with a Crazy Board
In our experience, the number of irrational or unreasonable owners greatly outweighs the number of irrational boards. That said, there are instances where boards or individual board members act outside their authority, act irrationally, or simply ignore legitimate complaints or calls for action by homeowners.

What should be done when a board or manager fail to enforce the governing documents fairly and consistently? What if a board or manager refuse an owner's request to review HOA documents? Or denies an owner's request for a hearing? In each of these circumstances, the owner should be able to point to particular provisions of the governing documents which require explicit action and compliance by the board.

If a homeowner believes the board is failing to respond appropriately or acting irrationally, they should:

1. Articulate the issue(s) in writing as succinctly as possible;
2. Gather all relevant written documentation;
3. Review the HOA's governing documents (Articles of Incorporation; Declaration, Bylaws, Rules & Regulations) and identify which provisions control over the issue(s); and
4. Identify all relevant persons who are witnesses, parties or have other persons with knowledge of the facts and circumstances giving rise to the issue.

The owner should then draft a concise written letter or request to the board that embodies the four factors described above. If the HOA is professionally managed, then a copy of the letter should be sent to the manager.

The homeowner association's governing documents should have a process already in place to resolve the dispute. If so, the owner should identify the process and insist on board compliance. If not, and if the board does not respond adequately to the owner's letter, then the owner can request a meeting with the board.

If the board continues to dismiss or ignore the owner and if the manager is

ineffective in helping to resolve the dispute, then the owner should seek legal counsel. Keep in mind that many association governing documents require mediation or similar dispute resolution process be conducted prior to a lawsuit being filed.

If an owner does not wish to seek legal assistance, and if they feel the board is failing to follow its governing documents and otherwise acting irresponsibly or irrationally, then the owner may wish to try to unseat the board through a special election. An HOA's governing documents ordinarily outline the process for removing a board member or entire board.

The key to reducing and resolving disputes between the "crazies" (whether homeowners or boards) is to rely strictly upon the homeowner association's governing documents. A modicum of common sense and reasonableness also go a long way to solving the problem. If all else fails and the board cannot be removed via special election, then mediation or court interaction may be required. If so, in claims arising from enforcement or disputes, many governing documents allow the prevailing party to recover reasonable attorney's fees and costs.

By Dan Zimberoff of Barker Martin   BACK


Managing Solo
Whether due to rugged individualism, frugality or lack of viable alternatives, most homeowner associations are self-managed. One might suspect that most self-directed HOAs are small or lacking in common area amenities. Actually, many are quite large, complex and the kind that would typically have professional management. What caused them to go solo and what are some of the dynamics of self management?

According to The Owner’s and Manager’s Guide to Condominium Management "For self-management to be successful, unit owners must have plenty of time and experience, and a professional attitude toward their work for the association. For example, the treasurer must understand accounting and be willing to devote a significant amount of time to the maintenance of proper financial records and timely collections. The chair of the landscape committee should have gardening experience so that either a landscape contractor or a gardener can be properly supervised. If the association is fortunate enough to have members who have the three main attributes--talent, time and concern--self-management may be the best choice."

Size of the development is an important factor. Although it should not be the ultimate factor in deciding to self-manage, a sound case can be made for limiting self-management to HOAs of fewer than 30 units with limited common area space and no recreational facilities. The larger HOAs have more work. Most volunteers don’t want or need another job, particularly an unpaid one.

The main advantage of self-management is cost. However, if the motivation for adopting self-management is purely economic, the board should consider that decision closely. It makes little sense to save each owner a few dollars a month in management fees when the value of their property many decrease by thousands of dollars as a result of that decision.

Equally important is the question of who directs contractors, employees and volunteers. Supervision cannot come from an owner who simply wants to be the boss. Supervision should come only from a person with time and experience to oversee and control work performance properly.

The board must consider the legal implications of self-management, since the board itself is liable for its decisions or indecision. The board’s responsibility is to both fellow owners and the general public.

Although many governing documents contain a hold harmless clause that seeks to protect board members from legal repercussions for their actions, this does not prevent their being sued for mismanagement.

If the members consider self-management to be an adventure, enthusiasm may be high enough to be successful. However, that initial enthusiasm usually wanes as the demands on volunteers increase. A breakdown in the volunteer system spells disaster for continuity. Today’s "house-afire" is tomorrow’s "burn-out".

Consider the two really nasty aspects of self-management: having to enforce rules on or collect past due fees from your neighbors. Suddenly, the neighbor relationship becomes a master-servant relationship and neither party enjoys the new role it must play.

Controlling one’s own destiny in a homeowner association is a sea fraught with storms and smooth sailing. Under the right set of circumstances, self-management can work. As long as the approach is professional and business-like with a positive, affirming attitude, it can click. If it isn’t clicking, consider the alternatives that professionals can offer.  BACK


Guide to Rule Enforcement
One of the functions of a homeowner association (HOA) is to enforce certain rules and covenants. It's good to periodically review old practices and check against established norms to confirm that your HOA runs a sound enforcement program.

Generally, it is the board's fiduciary duty to enforce the rules but the board has some latitude when and what to enforce based on its best business judgment. The key is for the board not to be selective, arbitrary or capricious in how it handles enforcement. It is impractical to expect that a board can maintain absolute vigilance and catch each and every rule violation. Instead, the board should react when informed by a reliable source.

Here is a list of the typical remedies available to an HOA that seeks to enforce its rules:

1. Impose a Fine. This power is typically derived from the governing documents. A fine could be monetary or a suspension of privileges like pool or clubhouse. Of course, suspension of privileges is only effective if the member actually uses the amenities. Monetary fines can be escalating (like $5/day until cured).

2. Impose a Lien. If a fine is not paid, the HOA usually has the right to file a lien against a member’s HOA property. This may not immediately get the fine paid but in most cases, the threat of filing a lien alone will. The HOA is usually entitled to reasonable attorney, collection and related fees as well which will increase the amount owed. This is also a great incentive to getting the fine paid early.

3. County Court or District Court. The HOA is always represented by an attorney since these courts have rules and procedures which only lawyers understand. Court litigation is expensive and should not be undertaken lightly. Make sure the expense and effort fits the crime. We’ve all read about the time, emotion and money squandered on "matters of principle". The board has the power to compromise when it’s in the best and financial interest of the HOA.

4. Self-Help. In certain circumstances, the HOA can self-help by correcting the violation. Examples include hauling a junk vehicle, cleaning up an overgrown lot and removing a violating fence. Rather than ratcheting up legal and collection fees, it makes sense to take action and bill the offending member which, granted, may require legal action to collect. Even so, at least the offending issue is dealt with. If self-help is contemplated, make sure to keep copies of all correspondence that outlines that option if the member does not respond. Take photos of the offense for the record as well.

5. Mediation. Mediation can be very cost-effective and less confrontational way to cure a violation when a member has dug in their heels. Mediators are trained in the art of compromise. Many jurisdictions provide mediation services free or cheaply.

6. Using the Police. All municipalities have ordinances against nuisances, inoperable vehicles, disorderly conduct, disturbing the peace, etc. The HOA should always consider contacting the local authorities when handling certain violations as these agencies are better equipped and authorized to deal with some matters. At the very least, the HOA should maintain a good rapport with local law enforcement and government offices and cooperate with them when these entities are brought in to investigate a resident's misconduct.

By William G. Gammon  BACK


Tenants from Heaven
The phrase "absentee landlord" in a homeowner association context conjures up images of the "tenant from hell" and an owner who could care less. However, generally speaking, both the landlord and tenant want the highest and best returns on their investments. What benefits the homeowner association will also benefit them.

The board can take some steps that will help assure a more successful tenancy. For one, it is reasonable to want tenants and landlords to comply with the rules. Of course, the tenant has to know what they are in order to do that. Remind the landlord that the tenant is bound by the same rules as owners and require that the HOA rules are part of every Rental Agreement. It’s up to the landlord to comply and failure to do so can be a fineable violation against the landlord. Include renters with other residents who receive information about the rules.

Landlords should be required to provide the board with:

  • Name of the tenant and contact information.
  • Vehicle(s) information (make, model, plate number).
  • Copy of the Rental Agreement that references the HOA rules as a condition of the agreement. (This is very important because it places the burden on the landlord to advise the tenant of rules and shows that the tenant received that information.

While the HOA cannot require it, common sense and good management practice indicate that landlords should also:

  • Perform credit checks on prospective tenants.
  • Check several previous landlord references (HINT: The most recent landlord may have a vested interest in getting this tenant out.)
  • Have read and understand the state’s landlord-tenant laws, and
  • Identify all occupants in the lease by name to avoid "musical" tenants.

While the landlord is the key to properly framing a tenant’s role within the HOA, it’s also important that the board, manager and owners refrain from treating tenants like second-class citizens. When treated with respect and like owner members of the community, they usually act the part by taking care of the property and respecting the neighbors. Treat renters like owners and reap tenants from heaven. BACK

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