Q: I am the treasurer of a small condominium association. We provide our house rules to each owner. The rules state that no more than three units will be rented at any given time. Our declaration does not state anything about limiting the number of rentals.
Although three units are now rented, one owner, a long-time resident, has tried to sell his unit but is not getting a decent price. He has asked the board for permission to rent his unit. He has been told by his attorney that the declaration is silent and the rules are not legally binding. Is this accurate?
What percentage of units being leased affects the value of other units, common insurance and mortgage financing?
A: The board of directors has the authority to adopt leasing rules. The rule is not considered to be as valid as a declaration amendment. Declaration amendments are presumed by the courts to be valid because the owners vote on the change. If challenged, the board will have to defend the rule as a reasonable restriction under the declaration and the operations of the association. Courts have recognized the authority of associations to preserve the residential nature of the property through leasing restrictions.
The secondary question is whether the owner qualifies for a leasing exemption. A “decent price” in today’s market is a relative term. Before requesting a leasing exemption, owners should perhaps attempt to sell their units at prices that reflect the current market, which admittedly is below the levels of past years.
Condominium boards generally express concern about the number of rentals when 25 percent or more of the association units are leased. That figure may vary depending on the number of current leases. When considering leasing restrictions, boards generally want to maintain rents at current levels and no higher.
Q: I own a condominium in a two building high-rise community. Our board is considering signing a contract with a major carrier to install nine to 12 wireless antennas on the roof of one of the high-rises, even without seeking an owner’s opinion. Is this legal?
How can the owners stand against the plan and prevent the contract from going through?
A: The board of directors has the legal authority to lease portions of the common elements. It is very common for high-rise condominium buildings to have license agreements with telecommunications providers. The agreements do provide significant income to the association which, in these times, may be useful to minimize assessment increases.
Owners can express their opposition on any contract at a board meeting or submit a petition to convene a special meeting of the association to discuss the proposal.
Before taking action to object, carefully consider the nature of the contract and the income it may provide to your community.
Q: I live in a very large condominium building. The board commissioned an engineering firm to assess the exterior masonry facade and unit windows. The windows may have to be replaced. The board wants the owners to be responsible for window replacement.
I thought that owners’ responsibilities are for the interior, and not the exterior, portions of the property.
A: Responsibility for the windows depends on the language of the declaration. Generally, windows are limited common elements. The declaration must specify whether repair and replacement of limited common elements is the responsibility of the association or the unit owner.
The board of directors has the general authority to determine the scope of building maintenance and replacement, as well as the appearance of the common elements. The classification of certain portions of the property as limited common elements may provide the basis for the board to charge the owners directly. The language of your declaration is the key to your answer.
