Reserve of Turpin Residents
Following legal counsel, the Board of The Reserve of Turpin has created a survey to gauge community feelings about rentals and their potential to transform our neighborhood. The results of this survey will be used to propose an amendment which would be voted on by the residents of the Reserve of Turpin.
This amendment is important for multiple reasons. The Association’s attorney, who practices almost exclusively in condominium and homeowners’ association law, has observed an uptick over the past several years in the number of single-family homes being purchased to rent. This would not necessarily be a problem on its own; tenants are not automatically undesirable simply because they rent. However, real estate investment corporations are buying large numbers of homes in single communities. Without a covenant in place to restrict or limit rentals, investors could buy up numerous homes and dilute the voting power. In more extreme cases, the buy-up could lead to the ability of the corporation to vote itself to take over the Board and convert the community to a primarily rental community. As voting power is diluted, the ability to make any amendments to the Declaration, By-Laws, and rules of the Association shrinks.
There are also practical reasons to restrict or limit rentals. Presently, only the Attached Single Family section of Reserve of Turpin contains rental regulations, and they are very basic. Without the ability to regulate rentals in the Detached Single Family section, the Association cannot even require Owners in that section to inform it when a home is rented, much less require tenant contact information. The Association needs to know when a home is rented and also have the tenant’s contact information for prompt communication of emergencies, maintenance issues, and violations of the covenants that affect the community or other residents. A higher number of rentals usually leads to increased common expenses because the Association cannot as easily identify those who cause damage to Common Areas or commit violations of the Declaration.
The amendment that the Association’s attorney proposes is the tool by which the Association can insulate itself from the concerns while protecting Owners’ ability to rent their Units to immediate family or in the case of experiencing an undue hardship or, if a rental cap polls out best, under a rental cap that is fairly administered. Note that Owners who purchase in the community for the sole purpose of renting are unlikely to qualify for an undue hardship exception. And in the case of corporate investors, it would be impossible for them to qualify for such.
