Home | Weekly E-Zine | HOAleader.com provides practical adv . . .

HOA Landlords: Are You Following These Best Practices?

March 2, 2012
Printer-Friendly Format

HOA Landlords: Are You Following These Best Practices?

In this week's tip, we offer three of six best practices you should be implementing if you're now not only managing your HOA but you're also managing rental units your HOA has required through foreclosure.

1. Don't be a loosey goosey landlord. "Make sure you enter into a written lease agreement," advises Dennis J. Eisinger, a partner at Eisinger, Brown, Lewis & Frankel PA in Hollywood, Fla., who represents more than 500 condo and HOA associations. "Also, make sure the HOA goes through the same tenant screening process you'd require if you were leasing out your own personal unit."

2. Explain to tenants the status of the unit. "Disclose in the lease that the property is presently, or may be, subject to a mortgage foreclosure action," says Eisinger. "We have form leases we provide to our association clients that say something along the lines of, 'This property may be subject to a mortgage foreclosure action, but pursuant to the federal Protecting Tenants at Foreclosure Act, tenants may have the right to extend their tenancy if there's a foreclosure.' We're disclosing there's a possible mortgage foreclosure but also that there's a statute that might give tenants extra protection."

3. Create one person for tenant contact. "We usually advise HOAs to make sure you have a point person for tenants," says James R. McCormick Jr., a partner at Peters & Freedman LLP in Encinitas, Calif., who represents associations. "It might need to be your property manager, or you might even need a separate property management company. But if issues come up—such as things that need to be fixed or questions about whom to send rent to—it's better that the tenant and the board know who that point person is."

Find out the other three of Six Best Practices for HOA Landlords in our new article.

Best regards,
Matt Humphrey

Printer-Friendly Format