How to Fight to prevent rental restrictions from HOA

9 Replies

Hi Guys,

I've owned an apartment in Las Vegas since 2012. I have rented it out in all these years. I just received a newsletter from the HOA stating they are planning on making it so that all future sales of apartments are to home owner occupied only - No renting out. Current owners such as myself can continue to rent out.

They way I see it is if I sell in the future, the pool of buyers that may be interested will be much more limited as I won't be able to sell to investors. 

Any thoughts or ideas on how to prevent this? Currently the plan is open for discussion and I am trying to make a case or have good reasons why future apartment sales should still be available for rental.

It shouldn’t affect you unless you plan to sell it rents occupied. An owner occupied will pay more. 

Usually this is pushed in condo buildings because if they get too high a rental to owner occupied ratio then buyers can’t get loans and have to pay cash, that will hurt you more. 

You can check to see how much this change passed by. If it was close run for a board seat and contact non-owner occupied owners and tell them why you’re running, to support landlord rights. 

Originally posted by @Theresa Harris :

Get on the HOA board. Most condo boards can't just change the bylaws without a majority of the owners voting for the change. Have rentals been a problem, if not...then why change it?

Thanks Teresa. Unfortunately I live out of state so being on the HOA board probably isn't doable. Not sure if other Rentals have been a problem in the complex . My tenant has lived their for 6 or 7 years and no issues.

Originally posted by @Bill Brandt :

It shouldn’t affect you unless you plan to sell it rents occupied. An owner occupied will pay more. 

Usually this is pushed in condo buildings because if they get too high a rental to owner occupied ratio then buyers can’t get loans and have to pay cash, that will hurt you more. 

You can check to see how much this change passed by. If it was close run for a board seat and contact non-owner occupied owners and tell them why you’re running, to support landlord rights. 

Thanks Bill,

Sounds to me that you believe its better to let this restriction rule go through? (As resale value will be better in the future if I choose to sell?)

This rule is still in the discussion phase so nothing definite yet. Anyway you know of to get contact info of landlords? I'm assuming I need to contact the HOA but they may not be open to giving me contact info for privacy concerns. Also I live out of state.

@Dan Trinh

I don’t know that it’s good for you, but it’s worse for landlords that want to move in to your area. If people want to live in that building they’ll have to rent from you. 

To find landlords you SHOULD be able to go to the county property tax assessors website for the county the property is in. Put in the addresses and see if the mailing address is the same. If it's not, then the different address is where you mail your letter about running for HOA. Heck, if it was me, my letter woudl even say I was willing to support their run for HOA member, it's not a power grip, it's getting a voice on the council.

Ps. Make sure you know the names of all the current members so you don’t send your letter to them by accident. 

Pps. I just noticed you’re out of state. I guess this changes things to saying In the letter you want to start a group for building landlords and suggest getting someone else on the board as you are out of state. For all you know they don’t have enough interest to change it. Or you could buy more units before it passes. 

Originally posted by @Bill Brandt :

@Dan Trinh

I don’t know that it’s good for you, but it’s worse for landlords that want to move in to your area. If people want to live in that building they’ll have to rent from you. 

To find landlords you SHOULD be able to go to the county property tax assessors website for the county the property is in. Put in the addresses and see if the mailing address is the same. If it's not, then the different address is where you mail your letter about running for HOA. Heck, if it was me, my letter woudl even say I was willing to support their run for HOA member, it's not a power grip, it's getting a voice on the council.

Ps. Make sure you know the names of all the current members so you don’t send your letter to them by accident. 

Pps. I just noticed you’re out of state. I guess this changes things to saying In the letter you want to start a group for building landlords and suggest getting someone else on the board as you are out of state. For all you know they don’t have enough interest to change it. Or you could buy more units before it passes. 

I Appreciate the Advice Bill!

@Dan Trinh my opinion is the resale value will go up in this situation. It is good that you are grandfathered in. In order to get best of both worlds I would make a suggestion to the HOA board that if a rental property owner sells the home can still be rented out. So the rental exemption passes through to each owner. The justification would be when the original investor purchased it was with the understanding that the home could be sold to other investors....

Originally posted by @Michael Robbins :

@Dan Trinh my opinion is the resale value will go up in this situation. It is good that you are grandfathered in. In order to get best of both worlds I would make a suggestion to the HOA board that if a rental property owner sells the home can still be rented out. So the rental exemption passes through to each owner. The justification would be when the original investor purchased it was with the understanding that the home could be sold to other investors....

That's a great Idea Michael! I will definitely push for that. It definitely is the best of both worlds. Thanks again!

I have a different take. Ask the board if the complex is approved for VA and FHA financing. If not, they should focus on this instead. It would accomplish the goal of more owner occupied units without restricting anyone.