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[eilis]

I currently own a single unit of a Townhome and my HOA recently updated their bylaws so that it now states that a sole property management company is now to be used for all rentals. In essence according to the by-laws, this even applies to owners who wish to rent out their own unit. We have occupied our unit since we bought it 4 1/2 years ago. Since house prices have plummeted we have decided to rent out our unit and buy a new home.

The property management company has a $300 fee for upfront advertising, and a $45 per month fee for handling interaction with a tenant, minor maintenance, and payment to the owner. This fee applies regardless of occupancy. While this route could be the way to go for some people, it's not for me. I had fully intended on renting my own property, including all of the hassles, repairs, bad tenants, etc. This seems like it's my right as a homeowner.

My question is, do they have any right to do this? They don't OWN anything, I DO. They have no money invested in my property. I pay my $500/yr HOA dues on time, quarterly. This seems like this should be my only obligation to them besides following the rules. Basically I don't feel it's fair that I should have to pay to rent a property that I own. They want $300 for advertising and acquiring a tenant. I can do that on craigslist for free and all else that is involved is MY time and money at MY own risk.

Can they do this? Are there any legal ramifications if I choose to go around them?

Any advice would be greatly appreciated.

Thank you in advance.

[vipponah]

There is not much you can do. The reason why HOA rules are so tight, this prevents undesirable individuals from moving into the community.

What is known;

- your community is managed by a home owners association.
- the home owners association manages the owners with bylaws.
- you are subject to follow the bylaws set forth by the HOA.

One thing you could do is find others who feel the same way you do and file a petition with the HOA.

[rushford79]

Ask any attorney about illegal restraint of trade.

[albanwr26]

Yes, since it's in the bylaws.

"This seems like this should be my only obligation to them besides following the rules." - the bylaws are the rules.

[jaren12]

You should call the HOA attorney and question the legality of this. That's absurd.

[chay]

It's unlikely that that would stand up in a court of law. That's really a question for a local attorney though.

[abelard29]

Any time there is a change in bylaws the entire membership is informed & all have the right to vote on it. Majority rules unless the original bylaws state otherwise. Read your original bylaws you received when you bought & see if the rules were followed for this vote. If not, then you have a leg to stand on. If they were, then you don't. Seems odd that the fee would apply if you are owner occupying.

[sayre]

I don't think you would have a leg to stand on since it's been voted on by the majority of homeowners and is now a condition of the bylaws. Bring a copy of the HOA bylaws and have an attorney read through it however.

Now, if you can settle down for a moment -- you would realize that what you are being offered here is a real bargain. Most management companies charge for upfront advertising and an additional 8-10% a month of the gross rents to manage the property. To get charged a mere $45 a month is a steal. I imagine that the reason the association voted on this in the first place is because it gave them the ability to negotiate a lower fee schedule.

What are you getting for that money?
You will have a professional sign in the front yard with a person on duty all day to answer questions and arrange for showing.
They would have a larger pool of applicants to draw from -- not all renters read Craig's list you know :)
They would furnish legally binding leases which would cost you $200-$300 to be drawn up by an attorney.
They run the credit checks on potential applicants -- which would also cost you money.
They also screen the applicants and verify the references which usually has to happen during the working hours so people can be reached..
The leasing agency would also hold the security deposit in a special interest bearing escrow account (this is a landlord law in most states, incidentally).
They would take those middle of the night calls for broken furnaces and water leaks.
They would know the legal procedure to evict a non-paying tenant and would have the legal backup needed to do this properly.

I can understand you wanting to do all this and save money, but the reality is that managing a property and advertising for new tenants takes a lot out of your day and costs money. It also takes a bit of skill (and experience) to determine who will be a good renter and who might give you trouble.

I manage my own properties -- and believe me, if I found some one to take over the job for a paltry $45 a month, I would gladly hand it over.

[wethrby]

HOA by laws applies to all the home owners rather the home owners approve of it or not. If majority of home owners in the associations agree to a sole management company to care and maintain the homes within the HOA neighbor, then there is nothing you can do. You can try and take it to court but most likely won't win. The HOA Bylaws is there to protect the neighbor as a whole and not as individual owners.

If you have a copy of the bylaws then take it to your lawyer and have them take a close look at it. If the wording of that one law stating about using one sole management company is off then that bylaw can be invalid unless the HOA has another vote and majority of the home owners approve it.