What is an HOA’s right to ban rentals in certain situations?

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What is an HOA’s right to ban rentals in certain situations?

I am the treasurer of a HOA. I have many owners with tenants that still refuse to pay even though the Association pays their water bill and electricity. Can we legally ban homeowners that are not currently paying from renting out their units? This is not fair to the paying homeowners that have to foot the bill for deadbeat owners.

Asked on January 28, 2011 under Real Estate Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The remedies you can take in the event of nonpayment depend on what the HOA, etc. agreements (and any rules, etc. incorporated into them) allow you to do. If there is nothing in the agreement covering this situation, then your recourse is probably to sue the delinquient owners for the money they owe (and potentially some other costs or expenses, or interest). Before doing that, though, check the HOA guidelines and also bring in an attorney to review the situation with/for you. It may be that you can foreclose, put a lien on the property, turn off utilities, etc.--there are an array of options available, but the specifics will depend in large part on what is in the agreements that owners sign on buying into the community.


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