HOA can ease rent restrictions
Q: My homeowners association has limited rental restrictions in our complex. I have lived there for 10 years. I bought in 2005 and am upside down in my mortgage. I am a young, single female, college graduate. I am wondering how I can get around this rent restriction if say, I should marry and move away, or if I should find a job out of state.
I don’t want to walk away as it would ruin my credit again since I had to refinance during the housing crash of 2008 to keep my house. A short sale could leave me with a large tax bill, and it is a lengthy process. I could not afford to maintain two places, and leaving the condo vacant is not safe. I would prefer to rent it until I can sell without owing on the mortgage, or is there a better option for me?
Can the HOA keep me from renting my home? It would still be collecting its fee, and the mortgage would still get paid. A win-win for all three of us. I would not be making much of a profit. I feel that I should be moving on in my life, but this is holding me back. Appreciate any advice you can give me.
A: There is some hope depending upon your board of directors to work with you. Nevada Revised Statutes 116.335 (6a) states that if a unit owner is prohibited from renting a unit because the maximum number of units have already been leased, the owner may seek a waiver from the board based on a showing of economic hardship. The board may then grant such a waiver.
You could also ask your board if it would accept a lease option to purchase. This is when an agreement is made between the landlord and tenant whereby the tenant has an option to purchase the home. This would require, on your part, to prequalify a tenant as to his or her ability to procure your home.
If the association cannot reach a viable agreement with you and if you did, in fact, lease your home, the association could take legal action against you which could cost you in legal fees and possible relocation costs to move the tenant from your home.
Barbara Holland is a certified property manager, broker and supervisory certified association manager. Questions may be sent to holland744o@gmail.com.
