Approval of Rentals – What Do Your Documents Say?
Renting out your property can be a source of passive income, offer tax benefits, and help offset rises in inflation. However, the situation can be quite complicated if the property is situated within a community with an association. Generally, the association is responsible for making and enforcing rules, collecting dues, and maintaining the community. Hence, it may be beneficial to understand how your documents affect the approval of rental apartments by the condominium or homeowners association.
At Prasse-Anderson Law Group, we are dedicated to offering knowledgeable guidance and trusted advocacy to members of community associations in complex issues involving rental apartments. Our practiced Florida community association law attorneys are available to discuss your unique situation and educate you about the approval process and conditions for rental properties in community associations. We're proud to serve clients across Tampa, Pasco, and Pinellas, Florida.
Understanding Your Community Association
A community association is a non-profit association formed by the members of a community. The purpose of the community association is to establish rules, preserve property, and improve the condition of the community. Some common types of community associations include:
Homeowner Association (HOA)
Condominium Association
Cooperative Association
Property Association
Furthermore, the community association is responsible for regulating rentals within their community. There may be strict rules and restrictions regarding rental apartments. In some cases, the condominium or homeowners association may flat-out prohibit it. An experienced attorney can enlighten you about the rules guiding rental apartments in your community and help you navigate key decisions.
The Approval Process for Rental Properties
Here's the approval process for rental properties within a community association:
Hire an experienced attorney to guide you through the process.
Obtain and complete the form.
Submit your application to the community association and wait for approval.
The board members or committee of the community association will review your application.
If your application is approved or rejected, you will be notified.
A seasoned lawyer can enlighten you about the criteria for rentals, walk you through the application process, help you submit the required documentation, and improve your chances of a successful outcome.
Common Criteria for Rental Property Approval
Here are some of the criteria that you must meet for the community association to approve your rental apartment:
Comply with the governing documents of the association.
Pass standard background checks and screening.
Ensure the financial stability of potential renters.
Ensure rentals are for legitimate purposes.
Comply with contractual and statutory protections.
Meet the minimum lease period.
Meet the required waiting period (live in the apartment) before renting it out.
Other requirements that are deemed necessary to protect the interests of the association's members.
In most cases, the criteria and requirements for approvals of rentals by the community association are often provided in the bylaws and Declaration of Covenants, Conditions, and Restrictions (CC&Rs) of the association. You may need to consult with your attorney to understand these conditions and for detailed guidance.
The Vital Role of Association Documents
Additionally, the community association's governing documents often contain various rules, regulations, requirements, and other contractual terms and provisions that members of the association must adhere to. Some of the basic governing documents of a community association include:
Recorded Plan or Map: This indicates where the various structures within the community will be located.
Articles of Incorporation: This indicates the community association is registered within the state and states the basic purpose of the association.
Rules and Regulations: This is an internal document which outlines the general rules and regulations of the community association.
Bylaws: This includes various laws that guide the administration, management, and day-to-day operations of the community association and the board.
Declaration of Covenants, Conditions, and Restrictions (CC&Rs): The CC&Rs outline the various rules and regulations of your community, the requirements for fees and dues, instructions about what you can do—or not do—with your property, and maintenance obligations. The aim of the CC&Rs is to help protect, preserve, and improve the value of properties within the community.
Rental-Related Provisions in Your Documents
Here are some rental-related provisions to include in your documents to ensure compliance with the community association's rules:
rental caps and restrictions
approval procedures and timelines
tenant's maintenance responsibilities
security fees and deposits
term of the tenancy
penalties for non-compliance
A reliable attorney can help you prepare a solid application and work so that you and your potential tenants remain compliant with all of the community association's rules.
Detail-Oriented Legal Guidance: Prasse-Anderson Law Group
Reviewing the bylaws and Covenants, Conditions, and Restrictions (CC&Rs) of the community association is crucial to understand the rules and limitations addressing rental apartments. Therefore, working with a knowledgeable community association law attorney is crucial for detailed guidance and to make intelligent decisions.
At Prasse-Anderson Law Group, we have the diligence and resources to advise and guide clients in community association-related matters. Our attorney can enlighten you about the association's rules, help determine whether to approve your application or not, and work diligently to protect the best interests of the association's members.
Contact us at Prasse-Anderson Law Group today to schedule a simple consultation with a seasoned community association law attorney. Our trusted attorney can offer you the detailed guidance and advocacy you need to navigate key decisions. We're proud to serve clients across Tampa, Pasco, and Pinellas, Florida.