HOA Or No HOA – Landlords Should Be Checking On Who Is Writing Them Checks Every Month.

Reblogger Wallace S. Gibson, CPM
Property Manager with Gibson Management Group, Ltd.

I just turned down being the Go-TO property manager for a 37 unit self-managed HOA because the HOA wanted to be involved in the way I did business with the unit property owners...KUDOS!  Unless these rules apply to the unit PURCHASERS also, kudos for making this involvement illegal!

Original content by Gabrielle Kamahele Rhind

Arizona recently passed a new law, SB1454.  In a nutshell, the law which goes into effect in September, rules that “HOAs will no longer be able to ask homeowners to conduct background checks on their renters and landlords will no longer have to give HOAs renters personal information.” 

Many homeowners' associations belong to crime-free programs, which partner with local law enforcement to ban convicted felons, sex offenders and drug dealers from renting in their communities. Come September, property managers, investors, private owners or others, can rent to anybody despite HOA rules and regulations that prohibit sex offenders, drug dealers, felons, etc.

Those opposed say the new law will:

  • Jeopardize the safety and security of hundreds of communities across the state
  • Takes away the safety and the security of every HOA in the state of Arizona
  • Take away a homeowners peace of mind of living in a designated crime-free community

Those in favor of the law say:

  • It gives rights back to property owners to rent their property out to who they want without restrictions.

No matter your opinion on the new law, or what your opinion is about HOAs, here is what a landlord should be doing:  BACKGROUND CHECKS.  It doesn’t matter if the home is in an HOA or not, it doesn’t matter if you are a licensed property manager or not, it doesn’t matter if you want the neighbors to like you or not –  the priority should be protecting yourself and your home.

As an investor and a property manager, I personally want good tenants in rentals – whether it is in an HOA or not.  But also, I want the neighbors to be happy – you see, happy neighbors do things like call you when something is wrong, help you watch the property when it’s vacant and do other things to make your job easier.

Remember, law or no law, if you bring crime into a neighborhood – you bring it into your home.  Do background checks and protect yourself and at the same time, others.

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com!

                                     

 

This blog is written with my opinions and my opinions are presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2011. If you want to reprint parts of this - just email me for my permission:TucsonsRealEstate@gmail.com.

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Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

The HOA shouldn't be privy to tenant information but back round checks have to be done Wallace.

Jul 21, 2013 08:15 PM #1
Rainmaker
3,846,217
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Conrad summed it up well Wallace. So I will just concur and move on! Enjoy your day!

Jul 21, 2013 08:30 PM #2
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Why would the HOA not want background checks to be done?  That's just crazy.

Jul 21, 2013 08:40 PM #3
Rainmaker
637,676
Scott Fogleman
New Home Team 804-573-9592 - Richmond, VA
Greater Good Group

Wallace- Sharing the background checks sounds like a nightmare. I understand renters can impact the lives of others.. but the property owner has the right to rent to whomever they choose, not the HOA.

Jul 21, 2013 08:54 PM #4
Rainmaker
901,904
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

This is the key phrase ~ here is what a landlord should be doing:  BACKGROUND CHECKS.  It doesn’t matter if the home is in an HOA or not

Jul 22, 2013 04:39 AM #5
Rainmaker
421,509
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Wallace, 

Knowing WHO you want to do business for is key - having clients that ALLOW you to protect them and work for them is key, verses being told by bad laws how you can and should do your business.  Life is too short to skip a background check!

All the best, Michelle

Jul 22, 2013 11:30 AM #6
Rainmaker
528,114
Lisa Friedman
Great American Dream Realty - Essex, VT
30 Years of Real Estate Experience!

Wow, that is an interesting law.  I can see how there could be heated arguments discussions on both sides of the table.

Jul 23, 2013 06:47 AM #7
Rainmaker
1,304,782
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

We just had an HOA sued when someone got ahold of several files that had been thrown away with a lot of personal information the lawsuit was expanded to include several property managers as well.

Jul 23, 2013 11:13 AM #8
Rainmaker
351,165
ReadySetLoan Condo Approval Team
ReadySetLoan Condo Team LLC - South Windsor, CT
The FHA/VA Condo Project Approval Specialists

From HUD/FHA's standpoint, if the legal documents state that the Board has to approve potential lessees, the condominium project is not eligible to be placed on HUD's approved condominium list.  This is true nationally.

Jul 24, 2013 12:21 AM #9
Rainmaker
986,178
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Wallace S. Gibson is the professional to see in Charlottesville VA - contact her at (434) 825-1933. Keep up the good work! Have a nice day.

Jul 25, 2013 02:04 AM #10
Rainmaker
686,859
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

A HOA is basically a group of separate individual apartment owners, not a cooperative where everyone owns shares and they CAN approve buyers and tenants (from what I understand).

Aug 12, 2013 07:25 AM #11
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