HELP: Commenting on Proposed HOA STR / LTR Policy

[Chad Smith]

Looking for insight and advice on a potential new policy our HOA is considering around Short-term and Long-Term Rentals. This isn't approved yet and open for comments by our HOA community. I'm looking for comments/advice regarding these proposed rules. We intend to give our 2cents in the HOA call this week and want to know if my initial thoughts are way off base.

TLDR:

• They (HOA) basically are saying that if you intend to rent your property either STR or LTR, they will require $2500 deposit/retainer, to account for any potential fines imposed as a result of renters' negligence/damage to HOA property. AND replenish the "retainer" should it fall below $500… **We own a single-family home. And there really isn't any amenities that can be damaged. Just road and maybe street signs, or other people's property. ** Doesn't seem right or fair **
• In addition they want notification to the HOA for EVERY renter, no matter how short of a period, as well as when anyone will be staying at our property, rented or not, including family and friends that visit when we aren't home.  ** Really ?  Notify HOA when family or friends stay over ?  ** 
• STR- Min 3 day stay; No more than 90 days STR per year. ** Seems low **

Is this something that is normal ? anyone else seeing these types of rules?

Don't see how they can require a "deposit", with no interest at that, for "potential liability fees" that may or may not manifest from a renter . I realize this is akin to a security deposit for a rental property, however it seems out of line. Seems like the HOA is trying to proactively solve a problem that doesn't exist. My money is better housed in an investment account IMO.

Some parts of this policy I’m okay with, but others just seem egregious and without merit.

** FULL DISCLOSURE: We don't currently STR, however may want to occasionally in the future when we travel or for special events.

Thanks in advance for your comments and advice !!

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PROPOSED HOA POLICY REGARDING RENTALS

• Notification:
• Owners who lease their properties for any period of time, including on a Short-term basis, or allow others to use their property for no charge, shall be required to have a license to do so. An Owner must provide written notification to the Association’s Property Manager and include the following information:
• 1. Name of the Owner and physical address of Owner’s property.
  2. Dates of occupancy for each occupancy on monthly basis due on the 1st of each month.
  3. Pillow Count for number of occupants for each rental occupancy.
  4. Name and contact information for the primary and responsible party renting the subject property.
  5. Written acknowledgement by Owner that all occupants have been provided a copy of the Association’s Rules and Regulations, this Policy and Rules and Regulations, as well as the Amended and Restated Declaration of Protective Covenants. Owners are responsible to post such Association documents in their homes for their guests’ reference.
  6. Signed document by primary renter to abide by and comply with this Policy and Rules and Regulations, and with such Governing Documents of the Association. The primary renter will be held liable for all other occupants.
• 7. For occupancies by members of an Owner’s family, the Owner shall only be required to provide the Association with dates of occupancy and contact information of occupants, so that the Association can communicate with the occupants if necessity dictates.
  8. Proof of notice to adjacent properties of the dates of non-owner occupancy for each calendar year.
  9. A local contact who is able to respond to issues regarding the subject property within 20 minutes of being notified.
  10. Payment of a $50.00 fee for administering and processing the application.
  11. Upon the provision to the Association of the above items, the Association shall issue a license to the owner. The license is valid for one calendar year. Licenses must be renewed each year. Owners renting their properties shall be required to sign a contract with the Association.
  12. For the purpose of written notification, email notification is acceptable.
• IV. FEES, VIOLATIONS AND FINES:
• When an Owner intends to rent their property either for a Short-term or Long-term
• contract, but not for use by a sitter, caregiver, caretaker, or friends and family on a
• non-financial basis, the Owner shall place an initial deposit of $2500.00 with
• Property Management against which fines may be assessed, subject to the required
• processes for imposing fines, as well as costs incurred by the Association in enforcing
• this policy and for administrative purposes. The deposit will be kept in a segregated
• account and returned less any validly assessed fines at such time as there are no longer
• any contemplated rentals. Fines will be assessed based on the attached fine schedule
• incorporated herein. Should the initial deposit of $2500.00 fall below $500.00, the
• Property Owner will replenish the deposit account to $2500.00 unless no further rentals
• are expected.
• A. Failure to place a deposit will be subject to a fine of $1000.00.
• B. Failure to file a Registration Form with Property Management or sign a
• contract that the property will be Short-term rented will be subject to a fine of $500.00.
• Proof of failure to file the Registration Form will be based on a review by Property
• Management of the subject Owner’s file.
• C. Any violation of the Rules, Regulations and policies governing Non-Owner
• Occupancy by a guest or renter shall be the responsibility of the Owner. This includes
• any assessed fines, including interest, or payments/replacements due to damage to
• HOA property committed by the Owner's guest, invitee or tenant.
• D. Owners and their respective property management or leasing company, if
• appropriate, will be notified of violations in writing, by phone and in writing, including by
• email.
• E. Fines will be assessed as set forth herein.
• Fines. If an Owner or Owner’s guest, tenant or invitee has violated or is otherwise liable
• for a violation of this Policy and/or Rules and Regulations, the following with respect to
• the levying of fines shall occur:
• F. The Association shall comply with its Policy on Enforcement and Imposition of
• Fines insofar as providing the Owner with an opportunity for a hearing on the alleged
• violation.
• G. If found to be guilty of a first violation, the Property Owner will be notified in
• writing per the Policy on Enforcement. The first violation, at the discretion of the Board of
• Directors, may be considered a warning. In the alternative, the Board of Directors may
• elect to assess the fine for the violation.
• I. For subsequent violations, the same process shall apply. If found to be guilty, the
• Owner will be notified of the finding by the Association or its manager in writing. The
• Owner will be assessed the fine associated with the violation
• J. Where a fine is imposed as a result of this Policy, it will be in the amount of $500.00
• for the first violation. Subsequent violations (regardless of whether during the same
• tenancy as the first or preceding violation) shall be fined at $500.00, and $1000.00 for a
• third violation, and escalating in $500.00 increments thereafter.
• K. The Board of Directors has the discretion to modify the fine amount based on the
• circumstances of the violation.
• L. All amounts assessed and not paid shall bear interest of 18% per annum until paid.
• Unpaid fines shall be liens against the Owner’s property.
• M. Notwithstanding the foregoing, nothing in this Policy will be deemed to limit the
• Association's rights and remedies as set forth in any of the other Governing Documents
• or pursuant to law.