RENTERS BEWARE!

An Opinion By Jan Bergemann 
President, Cyber Citizens For Justice, Inc.

Published March 12, 2011

 

I would like to see some real solutions and some real relief for the owners that still pay assessments in Florida’s community associations as they try to keep their communities financially afloat.  But the war shouldn't be waged on the backs of renters.  Renters are the least guilty party in this financial war raging between associations on one side and non-paying owners, banks and mortgage companies on the other side.

 

The Florida legislators took the easy way out by not wanting to hold the guilty parties -- banks and mortgage companies --responsible for the whole chaos.  Why?  Because the banking industry filled their campaign coffers!  

 

Association members were given the false hope that they would get the much needed relief by allowing associations to collect future monetary obligations from renters living in homes/condos where the owners have stopped paying association dues.

  

But, as predicted [COLLECTING UNPAID DUES FROM RENTERS CREATES BILLING HOURS] the vague language  -- created on purpose to keep attorneys busy -- caused many billing hours for law firms, but not real extra income for associations. Actually, the vague language in FS 720.3085(8), FS 718.116(11) and FS 719.108(10) just created more legal chaos at the expense of associations and the owners that still pay.

 

And we hear very often from these renters that they get kicked out of their homes, even if they pay associations the full rent -- a contradiction of Florida law caused by the fact that boards and association attorneys create their own interpretations of these laws.

 

We found a case where a tenant paid the whole rent to the association attorney, but the association wanted to foreclose on the unit anyway and kick out the tenant. On inquiry the renter was told that all six of his rent payments had been used to cover legal fees only.

  

Some law firms charge $100 for receiving each payment made by the renter. Lots of "administrative" fees are being charged by the service providers -- and in the end the associations -- the ones who were supposed to get relief from this provision -- end up with more or less nothing!

  

Renters in a condo in Ft. Myers found themselves stuck between a rock and a hard place. [New HOA law puts tenants in the middle] -- not knowing what to do. 

  

Numerous lawsuits filed all over the State of Florida attest to the fact that attorneys are really the ones raking in the big bucks, profiting from this provision that was supposedly helping the associations.

  

Tampa attorney Scott Farrell warned already last year on Channel 10: "Florida Renters Beware" -- and makes it abundantly clear what dangers are waiting for the renter once he/she receives the association demand letter: "Remember if your landlord is not paying their homeowner's fees on time - there is a good chance the landlord is also not paying their mortgage on time. The problem there - you have no way to verify whether the mortgage on your rental property is current. In short, you could pay the delinquent homeowner's fees and still be evicted by the bank if the landlord fails to pay the mortgage."

   

Not only that, the renter may as well lose his/her security deposit and first and last month's rent.  All the provisions in the new laws do absolutely nothing to protect the renter -- a renter who just happened to rent a home where the landlord has stopped paying association dues.

    

As much as I understand that associations desperately need money, the renters shouldn't be used as punching bags and even suffer financial losses caused by a bill that is a stupid excuse to protect the interest of the banking industry that caused the whole misery with their outrageous lending policies.

   

As long as our legislators don't come up with solutions to protect the renters, the only advice for renters should be: "As soon as you receive from the association a so-called ‘demand letter’ that you should pay the rent -- or part of it -- to the association, it's time to look for a new home. Not very difficult in the moment -- Florida is renter's heaven. Don't pay anything to anybody for two months and move! That's the only way for you to determine when you move -- without being forced to move on unreasonably short notice -- without waving good-bye to your security deposit and first and last month's rent. Don't rely on any promises -- just move to protect your financial welfare."

  

Our legislators should find some solutions other than allowing associations, owners and bankers to wage a war on the backs of renters that actually have no stake in the nonsense called community associations.
  

FS 720.3085(8)  If the parcel is occupied by a tenant and the parcel owner is delinquent in paying any monetary obligation due to the association, the association may demand that the tenant pay to the association the future monetary obligations related to the parcel. The demand is continuing in nature, and upon demand, the tenant must continue to pay the monetary obligations until the association releases the tenant or the tenant discontinues tenancy in the parcel. A tenant who acts in good faith in response to a written demand from an association is immune from any claim from the parcel owner.

  
(a) If the tenant prepaid rent to the parcel owner before receiving the demand from the association and provides written evidence of paying the rent to the association within 14 days after receiving the demand, the tenant shall receive credit for the prepaid rent for the applicable period and must make any subsequent rental payments to the association to be credited against the monetary obligations of the parcel owner to the association. The association shall, upon request, provide the tenant with written receipts for payments made. The association shall mail written notice to the parcel owner of the association’s demand that the tenant pay monetary obligations to the association.

(b) The tenant is not liable for increases in the amount of the monetary obligations due unless the tenant was notified in writing of the increase at least 10 days before the date on which the rent is due. The tenant shall be given a credit against rents due to the parcel owner in the amount of assessments paid to the association. 

(c) The association may issue notices under s. 83.56 and may sue for eviction under ss. 83.59-83.625 as if the association were a landlord under part II of chapter 83 if the tenant fails to pay a monetary obligation. However, the association is not otherwise considered a landlord under chapter 83 and specifically has no duties under s. 83.51.

(d) The tenant does not, by virtue of payment of monetary obligations, have any of the rights of a parcel owner to vote in any election or to examine the books and records of the association.

(e) A court may supersede the effect of this subsection by appointing a receiver.

 

[ The same language is in FS 718.116(11)   and FS 719.108(10) ]

 


COLLECTING UNPAID DUES FROM RENTERS CREATES BILLING HOURS -- NOT EXTRA INCOME!

CONDO RELIEF ACT? WHAT A JOKE!

WATCH MAGIC WORDS: LIMITED TO THE LESSER OF ...


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