Over the last year, a trend has become more prevalent with numerous communities trying to limit the amount of units that can be rented out. Changes to community Covenants and Declarations must be voted into existence by all property owners and owner-occupant owners typically outnumber investment owners, however, the proposed rules can be so restrictive that even the owner-occupant types sometimes vote No. This topic is spreading throughout many communities because the HOA/COA property management companies who manage the associations “suggest” this tactic to the Board of Directors of communities. IF you want to see a letter that one community sent out making their case with 12 reasons why property owners should vote in favour of this, please email me. Additionally, many Boards are attempting to change the amount of votes required to get a Declaration modified; in the past most communities that are set-up by a Developer required a 67% or 75% majority in order for an existing covenant to be changed, the BOD are trying to have the required votes be reduced to a simple majority of 51%. Be on the look-out for these topics in your community and vote accordingly. What is interesting to me is that individual investors are not buying up properties in droves like they did during the real estate boom in the early 2000’s, these days there are institutional investors that are still purchasing properties, but not excessively, in our area. Most of the home-buying in today’s market is for owner-occupied property, not investment.
Editorial Comment: HOA's may be short-sighted on this topic. If communities mandated that an investor/Landlord be required to have a local, licensed professional property manager - most of the problems that they have with absentee Landlords could be resolved.