HOA restir Rentals

Seeking wisdom. We purchased a very nice home for a rental. We closed March 19 with the induenture provided by the seller's agent. However it was disclosed verbally that the HOA was in the process of paperwork to restrict rentals. A month after closing the President of the HOA shows up to inform us that the paper was filed March 7 and we can not rent the home. I ask for a copy of the new admendent which he said i could only get from their online portal thru the service that provides their assessments. SO that very day I did contact them and received the signed document. Which is signed by two trustees, and they need three according to their indentures. AND it's dated before we closed. There is provision for asking for a waiver to rent. Which with the help of AI i have created a nice letter asking for permission. I also have served on many boards and have expressed my willingness to be a part of their HOA as I can bring a lot of experiece. There are 59 homes and 16 are currently rentals. I would be number 17. My letter ask for five yaers to rent the home before selling. I really have a hardship due to short term gains and there are a few hurdles with appraisals and banker and sellers if were to relist just a few months after closing. We have done a few improvements but nothing like a new kitchen or big ticket items. The house was built in 1995 and has only one owner until now. MY sitution is that there are many families in this area who are displaced from their own home due to insurance lost and I have a family that can move in May 9th with the assistance of their insurance company and a placement company. This would be for a year while their home is being rebuild. While i have asked for collaboration from the board, they could say NO. I'm not sure they realize that working together and making expections with each of these rental properties is going to take time and creative thinking to nagigate each situation. There is another rental just came on the market in this neighbor offered by First Key. They are a big company and i'm not sure how they will tell them NO rentals. Especially if the HOA is not transparent in providing documentation of the new rules. Another tibbit is his home is across the street from this HOA president and he obviously was aware of the for sale sign in the yard. When I have been in such position I would have made sure that agent had a copy of the new rule. As that would have stopped that asap, we would have stopped processing with the purchase. We have been "hooked winked" and I'm asking the HOA for permission but now questioning what will I do if they do not respond by Wed. the date I ask for a favorable reply. If i allow this family to move in What am I risking??? Just weighting all the option for consequences.

--172.59.xxx.xxx

HOA restir Rentals (by S i d [MO]) Posted on: May 2, 2025 11:07 AM
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I hate HOAs for this very reason... except for the one I live in. *wink

I wouldn't buy a standard rental or STR in an HOA. When rules change, my investment is at risk.

I think you're at their mercy unless you can prove they didn't follow the proper procedure for changing the restrictions. Even if your house is right across from the president and has a big flashing sign in the yard that says, "Plenty's Gonna Rent this House in 7 days"... he's not under any obligation to inform you or your agent: only other homeowners.

I do know this: HOAs in my area are usually starved for people willing to serve. If that's the case for yours, maybe see if you can get on it and persuade them to see it your way. Or offer to serve as an officer in exchange for a waiver to rent.

Otherwise, hate to say it, but your Buyer's agent kinda dropped the ball. In my view, it's their job to find out and keep up to speed on any factors (rezoning, HOAs, etc) that might affect your purchase. That's why they represent you and get that sweet commission for doing not much more than unlocking the door and setting up the title company closing date. If you went without a Buyer's agent, then that duty would've been on you. The Seller's agent only cares about their Seller and has no fiduciary responsibility to you.

--184.4.xx.xxx

HOA restir Rentals (by 6x6 [TN]) Posted on: May 2, 2025 11:25 AM
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" Which is signed by two trustees, and they need three according to their indentures."

Would that alone, not allow you to be able to rent the house?

Maybe don't let them in on that until they take you to court. I would imagine that would when you the case, but I know nothing of HOA's. --73.19.xxx.xx

HOA restir Rentals (by plenty [MO]) Posted on: May 2, 2025 11:29 AM
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Thank you. I did ask our agent about indenture, and the seller agent did provide a update discloser from the sellers, that reads: Date Feb 25, Yes there are indentures, they have not changed since we purchased the home. We have not been informed of nay chnages. There is an admendment for no rental but nothing has happened." This same day we received the original indentures. I did some online searching and phone calling to find the President and spoke to him, he also said such was in the works but would not provide the papers to me stating "it's with legal, we voted" after closing we find out that it was filed between Feb 25 and our closing date. Mid April the President said if i wanted the document i had to go online thru the financial service to retreive such. To which i did, but that's only an option if you own, it's secure and locked to anyone who isn't an owner. It's not a pretty situation. I am asking for time to work thru my situation. If they think it's a hard line in the sand then what would it look like if 17 homes came on the market rather quickly!? I do pray they are civil and not a tree fighting with it's own branches. Thanks for the quick feedback. It is what it is now, i'm not seeking legal against the sellers or the agents, Just resoluation to move forward as neighbors. --172.59.xxx.xxx

HOA restir Rentals (by plenty [MO]) Posted on: May 2, 2025 11:30 AM
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HOA restir Rentals (by plenty [MO]) Posted on: May 2, 2025 11:37 AM
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6x6 they would win. Mostly they would not be awared damages, but they can tell you your mail box has to be PINK, and Opps Judge, we are volunteers and didn't know. Judges want to provide guidance and direction, most likely judge would negoatate a time period in our situtation to correct the issue, mostly award my request for two or five years to correct, and maybe even rent. It's best to be good neighbors and try and get thru a transist period with all these LL. I am curious how the HOA would with FirstKEY properties. I will exit at first oppoturity, as volunteer trustees will ask homeowners for special assessments to fight such, and it will be costly to go after each LL. I'm really not their problem, I'm their blessing as I have been on many HOA boards and came be of assistance. Thanks for the feedback. Here to learn. --172.59.xxx.xx

HOA restir Rentals (by 6x6 [TN]) Posted on: May 2, 2025 12:03 PM
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Thank you, plenty, for the explanation. --73.19.xxx.xx

HOA restir Rentals (by Ken [NY]) Posted on: May 2, 2025 1:56 PM
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I wont live in or own a rental in a HOA,fortunately we have very few in the area.I bought a log cabin on 8 acres at foreclosure auction that was in a HOA totally unknown until after i made a deposit.HOA president stopped by and was just happy with what i was doing and didnt even try telling me what to do and i cleaned it out and sold it quick --98.98.xx.xx

HOA restir Rentals (by Jason [VA]) Posted on: May 2, 2025 1:58 PM
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I don't have any advice to offer, but I'm sorry that you're having to deal with that nonsense. --130.41.xxx.xx

HOA restir Rentals (by plenty [MO]) Posted on: May 2, 2025 4:19 PM
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Just received a notification of rejection for my request to rent my house. AND I get it, cause they don't want the homeonwers to be mad at them, but truly does that mean I SHOULDN"T rent the home? What are the conquences ?? There are provisions for allowing rentals and I have that hardship. So I 'm not sure they can reject my request, I assume they would negotate my request for the time frame or have other restructions. --172.59.xxx.xxx

HOA restir Rentals (by 6x6 [TN]) Posted on: May 2, 2025 4:31 PM
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Not sure my approach would be helpful. In cases like this I don't see them following their own rules, so why should others. --73.19.xxx.xx

HOA restir Rentals (by 6x6 [TN]) Posted on: May 2, 2025 4:48 PM
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Considering your experience in HOA's, as a lead member, what would you do to someone who went ahead and rented a house in this situation? --73.19.xxx.xx

HOA restir Rentals (by 6x6 [TN]) Posted on: May 2, 2025 4:54 PM
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Looking over other things mentioned, it was noted that there are other rentals in this complex, what are they going to do about those rentals? Make them stop renting?

What are those LL saying? --73.19.xxx.xx

HOA restir Rentals (by Otis [IL]) Posted on: May 2, 2025 11:52 PM
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Maybe a dumb question but could you sell it contract for deed or something along those lines. Then you are not technically renting it. --24.52.xxx.xxx

HOA restir Rentals (by plenty [MO]) Posted on: May 3, 2025 7:26 AM
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Otis, perhaps. The was the addendum is written it says any such document can't be associated with a rental lease . Keep the ideas coming. --172.58.xxx.xxx

HOA restir Rentals (by MikeA [TX]) Posted on: May 3, 2025 10:24 AM
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I would consult with a lawyer. There are many questions that could be explored.

1) the seller didn't disclose the change in status at closing which they should have done, they may be on the hook for your losses as a result.

2) the amendment may not be validly executed because of the 3 signature rule (thus may be unenforceable).

3) In essence, the HOA president (officer) was aware of the pending sale with intent to be used as a rental yet did not inform the seller or buyer of the passage of the amendment prior to closing. He may have some culpability in this process which would give a lawyer some leverage to negotiate with the board to allow you to rent for some period.

4) a lawyer can probably give you an idea of what the "consequences" are if you rent it anyway. --209.205.xxx.xx

HOA restir Rentals (by zero [IN]) Posted on: May 3, 2025 12:20 PM
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plenty, you should have started off by taking the board members out to lunch.

Best of luck with this and sorry it is happening to you. --107.147.xx.xx

HOA restir Rentals (by NE [PA]) Posted on: May 3, 2025 12:24 PM
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What made you buy in an HOA after hearing all the horror stories here for so many years? --24.152.xxx.xx

HOA restir Rentals (by plenty [MO]) Posted on: May 3, 2025 12:54 PM
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NE I have served in a few HOA and condo boards and I'm familiar with and ok with having a standard for all or a base line. There wasn't no restrictions in the provided documents. There was hearsay from the President and sellers but neither could produce any documentation or had any papers to back up. I believe they intended to "hook wink" us as houses were not selling and interest rates are what they are and these old people (sellers) needed to go to a condo. I did offer less but I would have offed even less! --172.58.xxx.xx

HOA restir Rentals (by Doogie [KS]) Posted on: May 4, 2025 12:29 PM
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I think what Otis is suggesting may be your best bet. It's a very rare occasion that someone follows through with the purchase, so it works like a rental anyway. However if they complete the contract, they own it. You are acting as bank. You are claiming interest in your taxes instead of rent that way. I think I would speak with an attorney, have him draw up the contract to use and proceed.

I have to advise speaking to an attorney and CPA. It may not work, but I think it would. I also know a lot of attorneys that hate HOA's and love to do this kind of work. Surely there's some in your area as well. --107.207.xx.xx

HOA restir Rentals (by plenty [MO]) Posted on: May 5, 2025 6:11 PM
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After much consideration we are selling. And wisdom on selling so soon after purchasing? We closed mid March. Listing Mid May. Tips? Wisdom? Experience? --172.59.xxx.xxx

HOA restir Rentals (by 6x6 [TN]) Posted on: May 5, 2025 10:20 PM
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Some may suggest a 1031 exchange but not sure if you want to go that route.

You might check with your accountant and way out the options of holding vacant for a year with all holding cost for a long term capital gains vs. the higher cost for a short term capital gains.

Also I believe that you could exchange for oil & gas rights?

You might ask Ray. --73.19.xxx.xx

HOA restir Rentals (by Jason [VA]) Posted on: May 6, 2025 7:40 AM
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Have you consulted with an attorney? That should be the first move as they may find you an out. 1031 may be an option, but I can't imagine there would be any capital gains to be taxed on. --165.85.xxx.xxx

HOA restir Rentals (by plenty [MO]) Posted on: May 6, 2025 7:43 AM
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Yes all consultants visited. Stay and fight or move on. We Weighted everything carefully. Prayers for a buyer and I'll fold it in half and carry on. Not my battle. --172.59.xxx.xx

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