Does this HOA covenant means no "room-by-room" lease?

Does this HOA covenant means no "room-by-room" lease?

Member since 2019 · 4 posts · 0 votes

Hello, a newbie to BP and REI in general here. Excited to join this community!

I'm looking into a townhouse right next to a big university complex; potentially leasing individual rooms (or the entire house) to grad students. I just checked with the HOA covenants via my RE agent, and it says:

No Structure shall be occupied by more than one family;

How should I interpret this? Does this rule out the possibility of a "rooming house" operation? It's a 3/1.5 townhouse and the city allows rooming houses. 

I've asked my agent if we could get the answer directly from the HOA, but just wondering what the general sense would be since I might face similar situations down the road.

Thank you!

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Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
7y

@Sunjae Bae sounds like it rules out a room by room rental, unless you are renting to family. Its put in to prevent exactly what you're trying to do

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  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    7y

    @Sunjae Bae sounds like it rules out a room by room rental, unless you are renting to family. Its put in to prevent exactly what you're trying to do

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    Seems pretty clear.

  • Member since 2019 · 4 posts · 0 votes
    7y

    Thank you both for your comments. In general, do covenants like this also rule out renting out to a group of 2-3 "roommates" (i.e., not related by blood or marriage) under a single lease contract?

  • Rental Property Investor · Pasadena, MD · Member since 2019 · 42 posts · 3 votes
    7y

    @Sunjae Bae Ask a real estate attorney and talk to property local county to see about zoning for room and board. I'm in Maryland and they only meet every 5 yrs on these matters of zoning issues. I would interpret that as you can have more than one family which consist of multiple family's not multiple boarders. I would just contact real estate Attorney and go from there to see what the legal interpretation of that piece of the HOA agreement.

  • Rental Property Investor · Pasadena, MD · Member since 2019 · 42 posts · 3 votes
    7y

    @S Cutsail can't have more than 1 family but not on issues of multiple boarders. Sorry

  • Member since 2019 · 226 posts · 107 votes
    7y

    I was an HOA president for 15 years: An HOA serves two purposes. Purpose one is for the developer's 'protection' before the development is completed. Purpose two is for the protection of the owners of the real estate through the concept of uniformity and conformity standards.  The HOA enforces it's rules and regs with few limitations because it is considered to be a personal contract between you, the owner and the Association.  You agreed to each and every word in the Declarations the minute your sale was consummated.  This contract is made a part of the deed and recorded with each and every transfer of each property within the HOA.

    Some clauses in HOA declarations have been outlawed in the past...flags, satellite dishes, certain types of signs. Most are declared null and void because they infringe on rights outlined in the Constitution. But what you want to do hasn't been overturned and allowed anywhere it has been prohibited. The clause you cited would also create an HOA breach if you were to list even one room on AirBNB, VRBO etc.

    Before you start to think about challenging the HOA, first it costs a ton of money. But more importantly: As I stated, the contract between you and the HOA is a personal contract, and because you are a member of that association by virtue of that contract, to try and sue an HOA is viewed by the courts as an attempt to sue yourself....which isn't possible.

  • Member since 2019 · 4 posts · 0 votes
    7y

    @Daryl Luc Thanks for your insight. I was asking this question because I want to avoid buying a property that isn't compatible with my plans. I have ZERO intention to start a battle against HOAs for something like this :)

  • Member since 2019 · 4 posts · 0 votes
    7y
    Originally posted by @S Cutsail:

    @S Cutsail can't have more than 1 family but not on issues of multiple boarders. Sorry

    So probably it's okay to rent the entire house under a single contract to a group of roommates.. Thanks for sharing your thoughts! I'll update if I manage to hear from the HOA on this.

  • Rental Property Investor · Pasadena, MD · Member since 2019 · 42 posts · 3 votes
    7y

    @Sunjae Bae Yes please I want to know myself the best approach to this would be. I think anything is possible and that language is not clear to me and if it's not clear then it can be done. Ask the real estate attorney because the HOA might have their own opinion of the interpretation than what the legal definition is actually.

  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    @Sunjae Bae

    No roommates. The restriction is clear. 1 family, all related individuals only.

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