Keep Shareholders Happy By Keeping House Rules Current

If it's time to revise the rules, good news: they can be amended more easily than bylaws, so boards have more flexibility in adapting to different situations. When you don't revise the house rules, you end up with irrelevant ones about incinerators and others that don't make any sense. But you also risk leaving out rules that should be included, such as ones concerning recycling and trash disposal, carbon monoxide detectors, or move in/move out policies.

Typically, a board will decide to revise its rules when an issue comes up: for instance, an owner has questions about the subletting policy, and the board examines it, finds it confusing, and decides to review the entire policy. But some professionals say you should review your house rules at least once every two years to see what's out of date and what's status quo.

Once you've decided on a full-scale review, set up a committee of at least two to three board members to examine the policy. Discuss the rules thoroughly, eliminating ones that don't make sense anymore or are confusing and/or contradictory.

Although rules are generally not arranged in any particular order — they are often chronological by creation date (i.e., as an issue came up, a new rule would be added to the list) — you may want to take this opportunity to rearrange them by category or subject ("Parking," "Common Areas," "Windows," and so on) for easier reference. In addition, be sure that your rules reflect the needs of a building's occupancy. When children are found playing in the halls, for example, that can be disruptive to peace and quiet and may also cause damage to the public areas. It may be time to draft a rule that addresses that type of situation.

When drafting, be forceful and definitive in your language. This is not the time to be polite or ambiguous, which could leave policies open to legal challenge. Once you've drafted your revisions, have the building's attorney review them. Just as important as using clear language is the issue of enforceability. Boards must be ready to enforce the house rules they craft or re-craft. Let one infraction go by, and when you try to check the next person who breaks it, trouble is sure to ensue. Few things can inflame the tenancy more than a seemingly capricious rule. Indeed, from pet prohibitions to roof restrictions, boards sometimes seem to be acting inconsistently and autocratically is they let someone get away with breaking a rule and then try to enforce the rule with someone else who attempts to break it.

Boards must also be aware of rules that are impossible to enforce, such as prohibitions against odors or noise. An odor can be gone in a minute. Noise can be stopped immediately. No one is going to have a completely noise-free apartment and there is little chance that such a house rule can be enforced.

Finally, boards should keep tenants informed about any and all revisions to the house rules. Send out a newsletter with the revised rules. Also consider explaining the rationale behind the need to update them to show tenants you're not regulating for the sake of just flexing your muscle.

Having up-to-date house rules will keep your building running harmoniously.  And that's what communal living is all about.