I have a condo in Las Vegas in a gated community. Everything has been running smoothly with the tenant. The property manager tells me the tenant pays her rent on time and is very happy there. However the PM just informed me the HOA committee has decided that they are no longer allowing renters. As of 2013 only owner occupiers will be allowed. I’ve been told I’m expected to turf my tenant out. Obviously as these rules were not in place when I bought the property I don’t think hey should apply to me or my condo.Does the HOA board actually have a leg to stand on? Should I write a letter to them or what would be the best course of action to dispute this ridiculous new rule?
wow, you really are having some bad luck in the US. I hope it all works out. Maybe would be better posting this in the overseas deals section.
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labradorinlove wrote:I have a condo in Las Vegas in a gated community. Everything has been running smoothly with the tenant. The property manager tells me the tenant pays her rent on time and is very happy there. However the PM just informed me the HOA committee has decided that they are no longer allowing renters. As of 2013 only owner occupiers will be allowed. I’ve been told I’m expected to turf my tenant out. Obviously as these rules were not in place when I bought the property I don’t think hey should apply to me or my condo.Does the HOA board actually have a leg to stand on? Should I write a letter to them or what would be the best course of action to dispute this ridiculous new rule?would it not be that after 2013 no condo's can be bought by investors
you cant change the rules 1/2 way through
i would think it best to communicate with the HOA first through email
to get it straight from the horses mouth
and to put your point of view across
might save a lot of time and confusionHow good is your PM ?
can you speak to your original realator ?
What a stupid idea and a certain way to crash the value of property in the complex as all investor owners are forced to sell immediately…. Like the Las Vegas property market wasn't bad enough without this.
Did you get a chance to vote?
Maybe you can do a rent to own deal with your tenant, then there is no issue
As most know I hate buying anything in HOA’s because of the variables (yield eating guzzlers lol) that you can’t control….(ever had a person just hate you because you are a tenant next to their beautiful house type thing??? BUT, a cap on occupancy by tenants makes sense if you consider how YOU would feel if you saw a previously owner occupied (OO) area start to become 100% foreign investor owned with tenants who may not give a toss… Normally how an action to change the covenants begins… Trust me, at that point no one cares about crashing the property value.. They are emotionally trying to “save” their community from us evil foreigners….interestingly, in the new world, higher restriction for us Vegans is comforting and may increase values…..
ALWAYS check and read the CCR’s for any HOA.. The rule book…. You must receive it by law prior to closing.
ALWAYS check the health of the HOA… I generally hate them.. The prettier the amenities, the more fixed costs you will have.. Love those tennis courts and swimming pools??? Imagine if 40% of the HOA is in foreclosure who has to pay for those amenities…. InAtlanta it is rife that you buy a town home and the HOA is down the gurgler. At best your tenants lose their tennis courts or pool, at worst you end up in lawsuits and extra $$.
GET A LIST OF FELLOW OWNERS….easy to do… Just ask the treasurer. What notification were you all given of this action item etc?? I love the states, one slip up on any matter of procedure will put a stay long enough to argue your case…
HOA’s tend to do things like a percentage of OO only etc.. 100% ban seems a bit excessive and with condos i would say impossible! I would suggest a strategy to try arguing financial hardship for current owners as a very good reason not to ban renting… Long term illness as well…just wait until someone who doesnt have health care needs treatment and wants to rent their condo to help cover costs…Think on THEIR level of reasons why what may seem like a good idea at first glance just isn’t. Even the most restrictive covenants normally have some cap versus outright ban…
An action is just an action though until ratified and I concur that you should ask for a list of other owners and plead your case… Ask for a reconsideration if you were given proper notice…..Grandfather clause or something…. Check with attorney….
Not suggesting intentional circumvention but ways around such a law include either a lease to own or set up the property in a company that, for a limited time, has the tenant as an owner of that company… Small, tiny, weeniest etc…. Or just sell and buy in a non HOA community…
Not advice.. Just personal opinion….
For what it is worth, I think we will see more of this as the “us versus them” mindset sets in across America…not just Vegas ….and we do all sit here and say to try to buy in non predominantly investor owned areas so understandable…
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