Buyers need to research community’s rental restrictions

NOTE: Susan Naumann, president of the Greater Las Vegas Association of Realtors, has forwarded me a question from a Las Vegas Review-Journal reader. Naumann writes the semimonthly column, "On The House Q. & A.," for the Review-Journal's real estate section. Each year the trade group's president is the guest columnist and fields real estate-related questions from the public. She punted it to me this week because it concerns a homeowners association-related question. So here goes.

Q: I live in a condominium community and am on the buildings committee. I have a question concerning the placement of satellite dishes in our community. What are the regulations? Does it have to be on a stand? Can we tell owners that they can't attach them to the roofs or sides of buildings. I've looked in the NRS 116 but haven't been able to find out answers to these questions.

A: NRS 116 does not address satellite dishes. Satellite dishes fall under the jurisdiction of the Federal Communication Commission. In a condominium community, a homeowner cannot install his or her satellite dishes on any common areas, including the roof, hallways, walkways, chimney or the exterior walls of a condominium building. Owners may place their satellites dish on their patios, terraces or decks that are exclusive to their use. This is what we call the "exclusive-use" areas or "limited common elements" of a community.

FCC regulations made it clear that the dishes may be installed on balconies or patios even if the association's declaration does not define the balconies or patios as limited common elements. Drilling through an exterior wall to run cable from the patio into the unit is generally not within the protection of the rule because the exterior wall is generally considered to be a common element. In order to install a satellite dish on common area property, you would have to obtain permission from the association. Satellite dishes that exceed 39 inches in diameter would need the approval of the association.

An association can impose reasonable painting requirements as long as it does not impair reception. An association may mandate the location of antennas and dishes provided they are capable of receiving acceptable quality signals for that location. A tenant who has the unit owner's permission to install an antenna or dish has the same rights as the owner.

The federal regulations do allow an association to enforce restrictions but associations are not allowed to have unreasonable rules. For example, the association has the right to require homeowners to complete an architectural request in order to install a satellite dish but the federal regulations require that there are no unreasonable delays in processing the approval of the satellite dish. For more information, visit fcc.gov.

Q: I always read your columns, and was wondering if you could help answer a question for me? My husband and I are in the process of buying an investment property. One of the documents in the HOA package is a "Restriction Against Leasing" whereby renting or leasing of any property is prohibited and all homes must be owner occupied. Is this restriction is legal?

Since our intended use of the property is for rental purposes, I would like to make sure that we can rent out the property. Otherwise, we obviously would not be able to purchase the property if we cannot collect rent (the document also prohibits charging rent). I would really appreciate your opinion. -- Josephine.

A: I see you have attached a copy of this covenant, which was recorded in 2003, that prohibits the leasing or renting of the homes in that particular community. There is no federal or state law that restricts an association from having a covenant that prohibits the leasing or renting of their homes. There have been some bills introduced in the Legislature, in 2007 and now in 2009, that would require associations to explicitly state in "bold and in plain language" in their covenants their leasing restrictions.

A number of years ago, the Supreme Court, Nevada addressed how HOAs could restrict leasing or renting of units.

The Supreme Court decision focused on a very specific clause in a particular association's existing covenants that pertained to changes and amendments to its governing documents.

In the end, the court ruled the association needed approval of all homeowners who would be affected by this change.

In the your case, it is unknown as to how the prohibition on renting or leasing became part of the association's governing documents in the first place. It obviously has been part of the covenants since 2003.

Overall, it looks like you would not be able to buy a home in this community for the purpose of leasing it. You will need to purchase another home in another community where such a restriction does not exist.

FYI: Congress of Racial Equality will hold its first free monthly financial literacy seminars Tuesday at 7:30 p.m. at the Texas Station Dallas Conference Center.

This month's seminar will cover foreclosure and loan modification. It will also discuss how to avoid scams that have surfaced throughout the state.

Nevada State Commissioner of Mortgage Lending, Joseph L. Waltuch will speak at the event.

Opening remarks will be given by Elisabeth Shurtleff, chairperson of the Fight Fraud Taskforce. For more information, visit fightfraud.nv.gov.

Space is limited for this event. Call 633-4464 or e-mail congressofracialequalify.org.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q.&A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759, or she can be reached by e-mail at support@hlrealty.com.