Reader Questions - Leasing Minimums, Tenant Information

Kelly,

I enjoy reading your articles. With the issue of renting by the day/week becoming red hot in the San Diego market, can the HOA amend the bylaws/CC&R’s to say rentals can only be a minimum of one month or longer? As it stands now there is no language about rentals of any kind.
Thanks,

S.H., San Diego

Dear S.H.,

Many associations already have short term rentals bans. Except in the rare association where members wish to be able to offer weekend or vacation rentals, most associations are better served by requiring minimum initial lease terms length. Short term hotel type rentals are arguably not “residential”, and therefore may conflict with the requirement in most CC&Rs that the property be used for residential purposes.

This is an important issue which bears discussion by the membership regarding if it desires a possible CC&R amendment adding that requirement.

Thanks for your question,
Kelly

Dear Kelly,

Thank you for your valuable information each week.
I’ve read one of your articles about ‘Owners must give board tenant information under new law’ a while back. I also read the law as you indicated; Civil Code Section 4740(d). However, in it, it said that the law has to be included in the HOA governing document. Do we need to make an amendment or add it to our governing document in order to enforce the law?
I mentioned it to our HOA management company to request renters information from homeowners, but they think that it’s not necessary and are reluctant to get the information.
Thank you,

H.F., Garden Grove

Dear H.F.,

Civil Code 4740(d) requires that, in associations with a complete or partial rental ban, landlords provide the association certain information. This statute requires that the landlord provide verification of the date the owner acquired the residence and the name and contact information of the prospective tenant or representative. This information is necessary for the HOA to know if the automatic grandfathering of 4740(a) applies because rental bans put in place in 2013 or later apply only to future owners, not those who were owners at the time the ban was put in place. This information is important for the association to be able to know when someone other than the owner is entitled to live in the residence.

However, even without a rental ban or limit in place, your association could adopt a rule requiring that information to provided, for everyone’s safety.

Thanks,
Kelly

Dear Mr. Richardson,

I am on the board of a large HOA. We have trouble with some of the residents not returning their yearly information update that requests the owners and tenants names, phone numbers, vehicle information and emergency contact info. If the owner or resident does not comply, can we assess a fine until either the owner or tenant complies?

Thank you,

P.H., Torrance

Dear P.H.,

Associations can help both landlords and resident owners by thinking about their rental policies and placing them in their CC&Rs. One very basic such requirement would be that resident contact information must be kept current with the association. If this requirement is adopted as a use restriction or rule, then yes, the association could enforce it with a fine, imposed after a hearing process complying with Civil Code 5855.

Best,
Kelly

Written by Kelly G. Richardson

Kelly G. Richardson Esq., CCAL, is a Fellow of the College of Community Association Lawyers and a Partner of Richardson | Ober | DeNichilo LLP, a California law firm known for community association advice. Submit questions to [email protected]. Past columns at www.hoahomefront.com. All rights reserved®.