Hi, Our HOA needs information on how to limit rental properties in our neighborhood.

Asked by Ann, Marietta, GA Thu Oct 30, 2008

Does anyone know of an attorney, website, that can provide GA rules on this subject. we know we can amend our covenants but don't know if there are restrictions.

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Hank Miller, Agent, Alpharetta, GA
Fri Oct 31, 2008
The HOA likely has an attorney on retainer (should anyway) and that's where to start. If not, then Don is correct that Weissman is a good start - Seth's office writes the contracts for the GA Association of Realtors as well as our company's attorneys - they're a great resource.

1 vote
Dave Trumbull, , Toledo, OH
Tue Mar 24, 2009
It could make it harder to sell a home especially in a bad market. I know I personaly wouldn't buy
a home in a area that prevented me from renting a house if I had to to make payments. So that
could cause real estate values to suffer once the word got out that that subdivision does not allow
house to be rented or has a cap on it.
0 votes
Jen and Mark…, Agent, Holmes Beach, FL
Mon Nov 3, 2008
I agree with Matthew Share and Richard. Require Homeowners to be responsible for maintenance to keep the exterior looking good. I would not restrict rentals. Foreclosures will bring down your home value much faster than a renter in your neighborhood. I would consider this very carefully.
0 votes
Richard, , Buford, GA
Fri Oct 31, 2008
I live in a neighborhood where the HOA is no longer allowing homeowners to rent thier homes. My home is on the market for more than a year and I decided that I will rent my home in the spring. The HOA can decide to go along with it or I can add one more foreclosure to the community.
that being said, restricting rentals in this market will do more harm to your community. Home owners that do rent thier homes need to take responsibility for thier property and maintain thier yards and home exterior with the same pride the had when they were living in the home. The landlords need to ensure that thier tennants also take pride in the home as well.
0 votes
Matthew Share, , Marietta, GA
Fri Oct 31, 2008
You will definitely need to consult an attorney to actually do it. I do know there are not likely any restrictions on doing so in GA since I have seen many other subdivisions that have a rental restriction. The most common is a cap that no more than 10% of the units in the community can be rented.

Before you implement this, I would urge you to consider both sides of this. While it may seem like a good thing as a high percentage of rentals can devalue a neighborhoods, in today's real estate climate, I've seen communities actually petitioning to remove such a provision from their covenants because the restriction on rentals was actually increasing the foreclosure rate. Many times, if a homeowner is having trouble making their payments and they can't sell their home, they can rent it out which saves them from foreclosure. Believe me, the amount that another foreclosure on your street devalues your neighborhood is infinitely worse than the devaluation caused by an additional rented property. I'm not saying not to do it. I'm just saying - thing of the pros and cons and make an educated decision that is in the best interest of all of the homeowners. If you need references for an attorney, contact me and I'd be happy to provde a few for you.
0 votes
Scott Godzyk, Agent, Manchester, NH
Fri Oct 31, 2008
You definately have to make sure there are not any state laws against it. I have seen HOA's limit the length of rental to a minimum of a year or charge a fee to the homeowner to get a rental permit to be able to rent it. A good real estate attorney will guide you through your state laws quite easily.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Don Zahnle, Agent, Atlanta, GA
Thu Oct 30, 2008
Contasct George Nowack, Weissman Nowack Currey & Wilco. He is the recognized authority in Georgia. Their number is 404-926-4500.

Don Zahnle, Pres.
Highlands at Akers Mill Condominium Assn.
0 votes
Fred Glick, Agent, Mountain View, CA
Thu Oct 30, 2008
Ask one of the REALTORS(R) that sell in your community to recommend someone. It is an easy thing to amend your documents if state law allows it.

Good luck
0 votes
Don Lantier, Agent, smyrna, GA
Thu Oct 30, 2008
go to http://www.georgiacondolaw.com/#GCA

also: your HOA should have a a lawyer under rentention and would be able to answer that question.

This is a good and important move on your part!

Good luck
0 votes
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