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One more question-- we are considering asking the people who rent their units rather than live in their unit to pay an extra monthly fee since we have only back-office management and problems with renters cause more work for us. We don't want to over-burden unit owners who are forced to move and rent their place in this market but we are trying to find ways to raise fees to cover costs of maintaining the building and this idea came to us due to problems we are having with one family of renters. Is this something others have done? We are not aware of anything in the By-Laws that would prohibit it .. should we be? If it is being done, what is being charged and why did you decide to do it?
Thanks!
Thanks bp ... we are a condo ... and people are allowed to rent their units. Currently we have 3 renters, plus one unsold unit rented by the Sponsor. We don;t want to discourage renting, just have those who are not living there pay a monthly fee which they can pass on to the renters or not.
I agree ... you should impose a sublet fee. Its usually calculated as a percentage of the yearly maintenance charge. Anywhere between 10 to 20%.
Note that the sponsor will be exempt ....
The business judgement rule would apply to this situation. As long as each shareholder is treated the same. You can't charge some a fee and others no fee. It would have to be any shareholder who rents his or her unit pays (x fee for administrative work)
You would only need to have the board put the rule into effect via the house rules.
BK
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yes, you can (and should) charge sublet owners a fee. Are you a co-op or condo? What's in your bylaws? Whatever is there, you can amend them.
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