The Rules of Renting a Condo - Part II
Tenants who rent a unit in a condominium complex, rather than a traditional
apartment building often are in for a few surprises about community life.
Common areas of misunderstanding include rules and regulations, repair
responsibilities and the consequences of the owner's nonpayment of
homeowner association (HOA) dues.
An association's rules and regulations can be found in its covenants,
conditions and restrictions (CC&Rs), which govern everything from the
elections of HOA officers to the allocation of parking spaces.
Unfortunately, inexperienced owners often neglect to provide a copy of the
CC&Rs to their tenants. "The tenant moves in, but the owner doesn't put
forward all the disclosures about things like the number of parking spaces
they are allowed, the number of people they are allowed to have in a one,
two or three-bedroom condominium and whether there are specific rules and
regulations for noise, pets and the recreational facilities," says Stephen
Bupp, owner of Condominium Ventures, Inc., a condominium management company
in Greenbelt, Maryland, and president-elect of the Community Associations Institute
(CAI), a nonprofit organization in Alexandria, Virginia.
Bupp says parking is one of the biggest issues. "Many communities
have limited parking facilities and rules limiting the number of vehicles
(that can be parked). When the tenant rents the home, they are unaware
that the rule exists. They get themselves and the owner in trouble," he
says. "The parking, the number of people (living) in the home and pets
usually are the biggest trouble."
Tenants often are also in the dark about what to do if the condominium they are renting needs repairs. The difficulty is determining whether the individual owner of the HOA is responsible for a particular repair.
Generally, if the problem concerns the individual unit, the tenant must
contact the owner/landlord to have the problem resolved. Unlike an
apartment manager, the association's management company rarely handles
repairs within the individual units. If the needed repair is in a common
area (e.g., an entry way, hallway or recreation facility), the tenant often
can contact the HOA or the HOA's management company directly. If a problem
in an individual unit also affects a common area (e.g., a water leak is
dripping into subterranean parking), the tenant probably should contact
both the owner and the HOA. In some instances, the HOA or its management
company will make the repairs, then bill the owner for his or her
individual share of the costs.
Perhaps the greatest area of concern for tenants arises when the owner
fails to pay the association dues or assessments. Few tenants have any
notion of this possibility or the consequences. "The association can be
taking action against the owner and the tenant might not have any idea
what's happening. One day, a foreclosure notice is advertised or lawsuit
papers are taped to the front door," says Bupp. "Some associations have
the power to file a lawsuit, obtain a judgment and collect the rent to
offset the nonpayment of the condominium fees. The tenant usually is very
confused (about who to pay) and should seek legal help."
Tip for condominium owners: The CAI publishes a handbook that offers
advice on avoiding owner/tenant disagreements. The book ($12.95 for
nonmembers) includes owner's obligations and tenant's rights, sample
leases, welcome letters and an analysis of state laws and agency
regulations, federal antidiscrimination statutes and relevant legal
decisions. To order the book, "Dealing with Tenants," call CAI at
703-548-8600 or visit the organization's Web site. Although the handbook
is intended for owners, the information can be helpful for tenants too.
The Rules of Renting a Condo - Part I
Marcie Geffner has been covering real estate issues for more than eight years, formerly as senior editor of California Real Estate magazine and now on a freelance basis. Her articles have appeared in the Los Angeles Times and San Diego Union Tribune Sunday real estate sections as well as various real estate association magazines. You can e-mail Marcie at mgeff@worldnet.att.net.
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Written by Marcie Geffner
Copyright (c) Marcie Geffner. 1998. All rights reserved.
