It is not unusual to hear both directors and owners complain about “renters” as a generic group, with the perception being that renters don’t care about the communities in which they live and reduce property values. But is this a fair depiction of renters, or is it just a few bad apples who give renters a bad name?
Regardless of how you answered the above question, associations cannot put all the blame on renters; absentee landlords who rent irresponsibly and fail to ensure their tenants comply with the rules and covenants carry much, if not most, of the blame.
So how can boards address situations where landlord-owners are not cooperating with their associations and failing to hold tenants accountable? The answers lie within the pages of your declaration (which is the same thing as CCR’s, covenants, and declaration of covenants, conditions, and restrictions).
First and foremost, it is important to note that any restrictions or requirements impacting rental rights of owners must be contained in the declaration as opposed to rules or policies. Because leasing is a fundamental right of ownership and deemed a “use restriction,” it may only be regulated through a duly adopted and recorded declaration.
In fact, CCIOA specifically provides in Section 205(1)(l) that any restrictions on the use of a unit must be contained in the declaration. Furthermore, Section 217(4.5) of CCIOA requires declaration amendments changing use restrictions to be approved by owners representing at least 67% of all votes in a community or a higher percentage set forth in the declaration.
Therefore, if your declaration does not provide the association with adequate rights when it comes to enforcement of covenants against renters and offsite owners, consider proposing some or all of the declaration amendments set forth below:
- Require landlord-owners to mandate adherence to the association’s governing documents in their leases. That way, violations of the rules will provide grounds for the owner to evict a problem tenant.
- Require landlord-owners to give their tenants copies of the community’s governing documents. Some associations even require owners to provide proof, in the form of a signed acknowledgment, that they have provided the documents to their tenants.
- Require landlord-owners to provide copies of their tenants’ leases (allowing redaction of personal information such as salary, employment, social security numbers, etc.) along with contact information for the tenants, such as name, phone number, and email.
- Require landlord-owners to sign written authorizations allowing associations to communicate directly with their tenants. Failure to obtain such authorization could result in liability exposure for associations who send direct communication to renters based on contract interference.
- Encourage landlords to screen their tenants carefully and conduct both credit and background checks. While associations should encourage due diligence by owners, they should not mandate such actions or participate directly in the tenant selection process as that would expose the association to serious liability.
- Require minimum lease terms to avoid transient use of property.
- Add authority to enforce restrictions directly against renters and evict noncompliant tenants when landlord-owners refuse to enforce the terms of their leases.
However, prior to proposing any declaration amendments to your members, the board should consult with the association’s attorney to ensure the amendment process is being conducted within the confines of the law.
If you have any questions concerning enforcement of restrictions against tenants and problem landlords, please contact an Altitude attorney by calling 303.432.9999, or at [email protected].