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Tenants Beware

By
Real Estate Broker/Owner with Erik Elsea-Jones & Co. Realty

Tomorrow is the day the new Florida Law goes into effect allowing Homeowners Associations to go after tenants for past due fees owed by the deadbeat owners they are renting from. Owners often owe delinquent fees to their association on properties that are in foreclosure. These owners however continue to rent the properties and most of them keep the rents although they are not paying their fees or their mortgage.

This law is aimed at helping associations recover fees that they are losing out on. Many associations throughout Florida are in desperate financial trouble due to the large amount of foreclosures and the subsequent loss of revenue from fees owed on those properties. Currently banks are only required to pay a maximum of six months of fees. The foreclosure process can take years leaving the association left in a deep hole.

Under the current law associations are allowed to petition a Judge to appoint a receiver to collect rents from the tenantswho occupy properties that are delinquent on their fees. This process can be costly in both time and legal fees. The new law is supposed to alleviate a large part of these costs. Only time will tell if this will work.

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Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

Erik,

That's an interesting approach.

I can see how it can help with the situations where the owner is collecting rent but not paying the HOA.

But delving into the middle of a landlord-tenant situation can be very sticky.

I hope it works out in Florida.

I wonder if they have something in the works here in California.

Jun 30, 2010 04:18 AM
Sophia Lin
Intero Real Estate Services - Sunnyvale, CA
Sunnyvale CA Real Estate Specialist

It's good to see that something is being done about the situation; now whether it's effective or not is another story.

Jun 30, 2010 04:19 AM
Charlie Gantz
Keller Williams Commercial, Tampa Bay - Saint Petersburg, FL
J.D., M.B.A.

Thanks for the information.  Would you happen to know the statute designation.  Charlie Gantz, Greenwood, IN; J.D., M.B.A.; Owner/Principal Broker, Atlas Property Group, LLC

Jun 30, 2010 06:08 AM
Erik Elsea
Erik Elsea-Jones & Co. Realty - Fort Myers, FL

Charles, the legislation is Senate Bill 1196 here in Florida.

Jun 30, 2010 06:16 AM