• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

HOA approval

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

STEPHAN

Senior Member
Florida. We own a townhouse in a condo association.

We did a routine background check and a credit check on possible new tenants.

However, the HOA also needs to approve them and rejected them based on the fact that an eviction was filed against them. We were aware of the situation and the tenants offered a very big deposit.

How is the legal situation? I totally agree that the association can reject tenants that are criminals or have dangerous dogs etc. How do they have the right to base this on financial aspects? I believe this is none of their business.


Thanks,

Stephan
 


Zigner

Senior Member, Non-Attorney
Florida. We own a townhouse in a condo association.

We did a routine background check and a credit check on possible new tenants.

However, the HOA also needs to approve them and rejected them based on the fact that an eviction was filed against them. We were aware of the situation and the tenants offered a very big deposit.

How is the legal situation? I totally agree that the association can reject tenants that are criminals or have dangerous dogs etc. How do they have the right to base this on financial aspects? I believe this is none of their business.


Thanks,

Stephan
This would be governed by the HOA bylaws. Read them.
 

Taxing Matters

Overtaxed Member
How is the legal situation?
HOAs are contractual relationships. When you bought the property in the HOA you agreed to the terms of that contract. If that contract says the HOA board has to approve the tenants then that's what you signed up for. There is nothing illegal about that. If you didn't want that then you ought to have bought the property in a place that is not run by a HOA.
 

STEPHAN

Senior Member
I totally understand that we agreed to the HOA contract when we bought the property in 1996. The HOA contract does not specify what rules are applied to approve or disapprove a tenant.
 

FarmerJ

Senior Member
Then I suggest that you hire a attorney to carefully re review your HOA rules and tell you have any options which could include a letter from the attorney to them ( if the rules were so poorly or vaguely written pertaining to denying tenants who are not obligated to them for HOA fees the same way YOU are. Your also free to sell it so you can find another home that is free OF legal ties to a HOA.
 

adjusterjack

Senior Member
The HOA contract does not specify what rules are applied to approve or disapprove a tenant.
Then the board can set whatever standards it feels are reasonable to protect the community. Financial standards are certainly reasonable. They are the criteria of lending institutions and insurance companies and are often indicative of a person's general ability to be responsible, not just for paying bills.

And let's face it. HOAs don't want tenant occupied units in the community and will do what they can to discourage it.
 

FarmerJ

Senior Member
AJ I have to wonder what percentage of town home multi unit homes / condos etc have been broken into and wiring and plumbing and furnaces and hot water tanks were stolen compared to say SFHs reason being of course is that a occupied home is less likely to suffer that kind of fate compared to a vacant rental. ( im tired , its bed time , but re reading this one I had thought about that , gnight )
 

adjusterjack

Senior Member
AJ I have to wonder what percentage of town home multi unit homes / condos etc have been broken into and wiring and plumbing and furnaces and hot water tanks were stolen compared to say SFHs reason being of course is that a occupied home is less likely to suffer that kind of fate compared to a vacant rental.
No idea.

:unsure:
 

STEPHAN

Senior Member
Update: We finally have the tenants approved.

The HOAs lawyer informed us that the HOA can not reject someone based on their financial standing. They can, however, reject someone based on an eviction if this was not disclosed on the application.

There had been an eviction filed on these tenants a long time ago, but the case was settled. The HOA felt that the tenants therefore had lied on the application when they maked "NO" to the question: "Have you ever been evicted?" The HOAs lawyer educated the board on what the difference between a filed eviction and a court-ordered eviction is.

(We did not have to use the card our lawyer suggested: The HOA was in violation of the Fair Credit Reporting Act by sharing the financial information with others and not notifying the tenant of the decision based on the credit report.)
 
Sponsored Ad

Top