Tag: hoa issues

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HOA Sent An Email To All Homeowners To Pay Up!

This HOA has given me more issues than I care to even describe, oh wait, I have been pretty detailed in everything they have done to this point. The HOA sent an email to all homeowners to pay up. That is right, after this fiasco I have had with them to be able to rent my home out and being denied, and now they are asking all homeowners to pay up their quarterly dues immediately!

Get caught up on everything that has happened to this point following the links below starting from Part I:

 

I have been simply trying to pivot my short term rental business model to a month to month or long term rental business and the HOA has yet to allow me. My goal is to weather through this storm with enough rental income to cover my major expenses in each of my short term rental properties. This should be a temporary thing and I have been able to successfully pivot my real estate investments in each of my properties but this one property.

Here Is The Email From The HOA

This is definitely a long email, but I want to post the entire thing for you to get the full story. If you want to just get to the meat and potatoes, jump to the last paragraph! I have gone ahead and highlighted the part I couldn’t believe they added to the email.

Dear Homeowner,
As promised, this is an update on the impact of Coronavirus on the resort and how we are responding. Obviously, this is a fast-moving situation and while we will attempt to flag up pertinent issues as they arise, all owners are urged to listen to public broadcasts and particularly take the time to understand the implications of the Florida Governor’s Executive Orders (EOs), which detail the State’s response to the unfolding situation and provide instructions for citizens to follow.
The latest “Safer at Home” Order (EO 20-91) relating to “essential services and activities”, became effective April 3rd and expires on April 30th. This EO is wide ranging and we would encourage you to familiarise yourself with its contents. EOs can be found online by a simple search but we shall be posting these on the resort owners’ website for ease of reference. Please don’t ask our staff for guidance on the implications of the various orders, as they are not qualified to advise but if you are in any doubt, do contact the authorities for clarification.
Just for information, for those not actually onsite, all resort amenities are currently closed down and we are operating on a skeleton staff, with strict social distancing rules applied to those visiting our front desk. Our front gate remains covered 24/7, by our own staff during the daytime and by our regular contractor during overnight hours. These measures will be in place until at least the end of this month, when the position will be reviewed in light of prevailing circumstances and, of course, guidance from the authorities.
Also, in accordance with an earlier EO (20-87), in which the Governor temporarily suspended vacation rental operations, we have been refusing new rental admissions and our attorney has advised that we should continue to do so for the duration of the order and of course, any extension, unless for any rental which may be exempt, as prescribed by the Order. If, therefore, you are considering renting out your own property within the duration of the Order, perhaps to emergency workers coming in to help fight the virus, please contact our GM who will advise on what documentation will be required to comply with the Order but again, if you are in any doubt about compliance, please seek legal advice first.
Finally, your Board are currently working with our management team to find ways to mitigate the threat to our financial wellbeing, as we work our way through this crisis and to formulate an “Emergency Budget”, to give us a slimmed-down template to follow over the coming months. We are also looking at the available Government support schemes, which may benefit the HOA and our employees in the short term.
A further update on our financial planning will be provided in the next few days but in the meantime, thanks to all who have already paid this quarter’s fees and to those who have not yet paid, please do send yours in as soon as possible, so that we can maintain sufficient cashflow levels, not only to protect your resort asset but just as importantly, to keep our resort and its residents, guests and staff, safe and secure through these difficult times.
Thank you all for you co-operation and please stay safe,
Resor HOA Board

 

Overall Summary Of The Email

Like I said, this was a very lengthy email. Here are a few things I took away from the email.

First, they are finally listening to some of the feedback that I gave to them in regards to communication. I sent a clear email to the HOA/Board coaching them up to understand that they can’t close down the resort and then send 0 communication to any of the homeowners on what is going on. This is extremely unprofessional from a business standpoint.

Second, they continue to outline the two different executive orders signed into law by the Florida state governor. They even go as far as to tell people to seek their own legal advice if they have questions around what is legal and what is not. They know they are in hot waters right now for how they have handled the situation and they even “claim” they have seeked their own legal advice as well.

Third, they are seeking what they refer to as an Emergency Budget to get through this crisis! Umm…do you understand how a basic P&L statement works? For those of you who may not be familiar, a P&L is a profit and loss statement. This document outlines the expenses and income generated for a business. The HOA, by stating we need to create an Emergency Budget, is implying we will somehow be spending more money than previously by reducing the overall staffing and shutting down all the amenities in the resort. Last time I checked, when you close things and reduce the number of hours people are working, you save money. Not spend more. So I am still scratching my head as to how this crisis means the resort will be incurring more expenses than usual when everything is shut down. And no, they aren’t doing any special type of cleaning in the resort clubhouse. Mainly because it is shut down and everything inside is shut down. So saying they need more money to clean is not a valid point.

Now Time To The Part That Really Pissed Me Off

I continue finding it funny that the HOA thinks they are financial experts on this stuff. Here is the part that not only ticked me off, but also ticked off all the other investors in the Facebook group. This excerpt from the email:

“A further update on our financial planning will be provided in the next few days but in the meantime, thanks to all who have already paid this quarter’s fees and to those who have not yet paid, please do send yours in as soon as possible, so that we can maintain sufficient cashflow levels, not only to protect your resort asset but just as importantly, to keep our resort and its residents, guests and staff, safe and secure through these difficult times.”

So, let me make sure I am reading this right. You are requesting HOA dues from everyone so we can keep our resort and its residents, guests and staff, safe and secure during these difficult times? So you feel morally okay telling people to fork up their dues when you won’t allow me to rent my place long term based off the law allowing it?

Just want to make sure we are clear here. I also want to be clear about another thing. I paid my quarterly dues. On time and in full. Every time. I set everything on auto-payment and I didn’t for one second think to not pay my HOA dues. I pay my dues just like I am supposed to every quarter. These dues, I thought, gave me the right to own and utilize the community for a rental property investment it was meant to be; yet, now I am paying the exact HOA who is preventing me from renting my own place out?

Dang, this seems ass backwards. I can’t believe they had the nerve to put that at the bottom of their email while at the same time they are saying tough luck to all the investors who own in the resort. It isn’t the fact that they aren’t allowing me to rent short term, the law is clear on renting short term. I get that.

It is the fact that they abruptly shut everything down and have yet to offer any alternatives to investors who still have mortgage payments to pay. It is honestly things like this that I believe are going to cause the economy to tank in the next 3-4 months, if not sooner.

In tomorrow’s post, I will outline my response back to their email to the larger group. They continue to handle this situation in ways that amaze me.

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Thanks again for all the support and continuing to come back each day for new updates in this saga!

Checkout the next article at the link below!

My Response To The HOA Clearly Asking To Rent Long Term

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What I Think Of My HOA – The Unedited Version

My views on HOA’s before and after this saga is definitely interesting to look at right now. To give an update on where we are at in the story. I have been told that the Executive Order in place prevents me from renting my home as a traditional short term rental investment property. There are still other avenues that I have yet to explore which I will detail out in tomorrow’s post. In the meantime, I wanted to provide some insight into how I view HOA’s. Real Estate investing is fun and there is so much that goes into it. Just when you think you have the hang of things, COVID-19 hits and the economy gets flipped on its head.

Before jumping into my unedited thoughts on the HOA, get caught up on all the craziness in the saga! Links below to all the articles so far!

What I think of my hoa

Here Are My Unfiltered Thoughts On HOA’s Prior To The Saga

Okay. You waited for it. Now you are going to get it. Here are my unfiltered thoughts on my HOA’s prior to the saga.

I paid my dues on time in full every month. I never had any complaints from the HOA and life felt normal. No issues. No concerns. All things were good and I was happy to continue paying my dues.

What Are My Thoughts Now? I Thought You Would Never Ask 😉

Here are my thoughts now on HOA’s. Do I think HOA’s can be good? Absolutely, I think they can be good.

Do I think HOA’s can have the ability for the board members to have power trips and think they are above the law and can do anything they so please to do? Absolutely, I feel like many members of HOA boards are just yearning for a sense of power. They maybe have never had a position of authority prior and love the power being on a board gives to them.

Do I think HOA boards are typically made up of the right people? Generally, I would say no. I don’t believe HOA’s are made up of the right mix of people. I feel like there are cliques that are created in communities and usually one clique will try to gain all the control on the board. They typically are the group who is the most vocal and has nothing better to do with their time than complain about things to people until they get their way. Oops, yeah, I guess I said it. That is how I view HOA’s.

How I View This Saga

Here is how I view the current saga I am in. This HOA is on a power trip. Here is where I believe the true problem lies though.

This community was originally designed only for short term rental properties. So 100% of the owners in this community were investors. In 2014, a new Bylaw was updated allowing people to live in the community long term as a owner occupied property. Since 2014, 20% of the homes in the community are now owner occupied. That means that 80% of the homes in the community are investors.

I am a firm believer the 20% of owner occupiers have been and are banding together. They have all lived there for many years and they have all made a pact to always do what is best for them and not the investors. I caught word the other day that they once tried to get the HOA to put in a $150,000 dog amusement park in the resort, until logical investors flipped and told them no.

I have an opinion that these 20% of individuals got together and immediately went to the front desk to speak with the GM of the resort as the COVID-19 break started to worsen. I have an opinion that they begged and pleaded to the GM to no longer let any new guests into the community no matter what. They wanted to keep their own “fortified” neighborhood where they were the only ones allowed in and out of the property. They continued to go to the GM everyday until they finally sent an email out telling all homeowners that no new guests would be allowed to check in effective immediately.

Detailing Out The Three HOA’s I Currently Have

I want to clearly articulate my thoughts on HOA’s before and after everything that has been going on. So time to clearly articulate the before.

I currently own 4 different homes. Three of the homes have HOA’s and one of them (the new triplex I just purchase) does not. The first home I ever purchased had an HOA.

The community is a nice community. It has a community pool, playground, dog park, softball field and small soccer field. The HOA charges $150 per month, but here is the amazing thing. The $150 a month pays for all lawn and pest control on my home so that is something I have never had to worry about! The HOA also provides access to all the amenities and maintains each. For $150 a month, I think this is well worth it. I have never had any issues with the HOA and I pay my dues on time every time each month.

Now comes my other two communities I own in, the first two sole Airbnb properties I purchased. The first property has an HOA running at $351 per month. This HOA is a little bit different though. It includes:

  • High speed internet in my home
  • DirectTV in my home with HBO and over 1000 channels
  • Clubhouse with a sauna, movie theater, workout facility and staffed front desk
  • A resort pool with a tiki bar!
  • 24/7 gated security
  • Exterior maintenance, exterior paint, and replacement of roof once needed

For $351 per month, I feel like it is a steal. A bunch of things that are add ons for the property, and internet and TV provided. Not too bad.

The last of my properties costs $251 a month which includes 24/7 security, clubhouse workout facility, resort pool, resort hot tub and resort kids water play area. A little pricey all things considered for what it offers, but I wanted to try a different community in the area.

Read the Facebook posts again. It is clear to see who the owner occupiers who live there are versus who the investors are.

I leave you with this cliffhanger.

Less than 5 hours after I sent my political response email back to the HOA (can be read again at this link), guess what happened?!?

Magically, they sent out an email to all the homeowners. MAGICALLY! Hmm…looks like my coaching up that I am doing for them is in the smallest way working.

In tomorrow’s post, the fun continues…you will not believe what they had the nerve to end the email with!!!!!!!

And you thought things had just settled down! Oh no, no no no. You are thinking wrong now!

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Thanks again for all the support and continuing to come back each day for new updates in this saga!

To checkout the next part to this saga, click the link below!

Part X: HOA Sent An Email To All Homeowners To Pay Up!

 

 

 

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Ready To Pull My Hair Out On This HOA Issue! – But Time For A Political Response

I am ready to pull my hair out on this HOA Issue! But time for a political response. If work has taught me one thing, it is to understand your audience when you are communicating. This is part of the fun of real estate investing. I hope I can help share this story with any, but if there is one thing I hope you learn is that this is apart of real estate investing. This is what I signed up for when I purchased an investment property. Although I want to blow up on the HOA for a few reasons, it is time for a political response to them and see what they come back with. In tonights article, I want to share exactly what I responded to the HOA with.

Before going into the email, get caught up on the story danggit! There has been so much that has gone on to this point. Again, can’t believe this is Part VIII in this saga and it is only continuing!

 

Now Time For My Email Response!

Before my email response, make sure to checkout Part VI specifically to read the HOA response to my first email. If you didn’t read my first email, well damn! Go back to Part V: Lawyered The S**t Out Of The Final Email To The HOA & Board.

Ok, hopefully you are now up to speed on everything going on. So a quick recap:

  • I lawyered the shit out of an email (thanks to a lawyer editing it) to send to the HOA and Board outlining my stance
  • This lawyer read the law as I did. She didn’t spend much time, but she read and interpreted the Executive Order like I did
  • The HOA responded saying I was reading the Executive Order wrong and they confirmed that with their attorney
  • I spoke with a local attorney to get her interpretation of everything going on, and she agreed with the HOA attorney. She did mention the executive order is horribly written and even in Section B of the Executive Order it excludes resorts, which my place seems to claim to be

Anyways, a lot of crap going on. And it hasn’t stopped. I am not trying to egg on the HOA or be difficult. I am simply trying to rent out my home legally. I don’t plan to ask the government for assistance to pay my mortgages. For one, I think it would be too complicated for me to figure out how to qualify and secondly, I just want to fight through it and get rental income at all my properties to pay my expenses.

The Actual Email I Sent

Here is the actual email I sent to the Board and HOA in response.

 HOA Board, 

To say I am disappointed with how the community leaders have handled this matter wouldn’t be doing the word justice. Communication sent to homeowners has not been clear with specific dates and timelines. The board has not offered other options to us investors instead of shutting us down. Not allowing investors to pivot their business model due to the current situation in the world, from my perspective, is not right. I own in another resort as well, and they have allowed investors to pivot their business models.  
I get safety is the top priority. Allowing people who are stuck in Orlando to quarantine in my safe and relaxing home does not put others in the resort at risk. These are individuals who are either snowbirds or have been down here for months on end and don’t want to return to their homes in the NE until things slow down. The virus spreads through close proximity with others. If people practice social distancing and stay in their homes, these individuals would not be posing a health risk for others. 
-TheYoungRetireeBy33

Hopefully that can be read. Here are the main points I was trying to get across in the email:

  1. I am disappointed in the overall communication from the HOA. Typically, I wouldn’t expect much of any response from the HOA’s I own in based off the situation going on. Maybe just one email saying what they are doing if anything, but when the HOA decides to shut down the resort to any new guests, my expectation for their communication is at a whole different level. I plan to write an entire post early next week on HOA’s and more thoughts on this.
  2. They have offered 0 options for investors who make up 80% of the community for things we can do to rent that they will allow. That is right 0!
  3. I get safety is a priority. This one is going to be a long bullet point, because I take safety seriously. I also have received feedback from multiple people saying I am inconsiderate for trying to rent my place out right now with everything going on. Here is my stance. Yesterday, I was on a meeting with our supply chain team. We had the Senior Vice President of Health & Wellness join the call and give us an update on everything going on. In the conversation he wanted to be clear on how COVID-19 is transmitted. He said what we do know right now is it is transmitted from human to human mainly through someone sneezing or coughing. There are three spots it can enter into your body, the nose, mouth and eyes. COVID-19 can stay in the air for 2-3 hours and can exists on surfaces for up to 72 hours. He ended with saying this, there is significant evidence showing you must be around another individual having COVID-19 for more than 30 minutes to be able to contract it. For all of these reasons, having someone new come into the resort, checking in at security for less than a minute (while practicing social distancing) and then driving to my home will pose no threat to anyone’s safety in the resort.

I Am Still Lost How New Guests Put Others In Significant Harm

Again, I will be the first to say safety is my top priority, always. But with everything that I heard from our Senior Vice President, I am confused how new guests pose a significant risk to the few who live in the resort. While all the resort amenities are shut down, and everyone practicing social distancing, I am so lost as to how my guests will pose a threat to people living there.

Something I Learned From Speaking To A Homeowner In The Resort

I would also like to point something out that one of the homeowners  who is an investor pointed out to me. He told me that the resort, when it opened, was only for investors renting out properties as short term rentals. He mentioned somewhere along the people who got on the board, who also happened to own a property in the resort, added a clause in the Bylaws allowing people to live in the resort full time. This then started to create a very tight knit group of individuals who were always in the community. This group slowly took over the entire HOA board and always have immediately gone to the front desk to speak to the GM whenever they had an issue. Mainly because they were onsite.

Him and I have been going back and forth for the last three days. He said how he believes the homeowners who live onsite all talked to each other and went to the GM of the resort requesting him to immediately shut things down to new guests upon the Executive Order being signed into law. Per this other owners words “the homeowners who live there want to use the resort as their own Alamo of security and we can’t stand by this shit.” Not my words, his.

Anyways…The Plot Thickens

This is not the end to this plot. Just wait till you see what happened just 5 hours after I sent this response email to the board. I keep thinking shit can’t get crazier, but I continue to be more and more amazed around the actions of the Board than ever.

New article coming tomorrow! Stay tuned…cliff hanger 🙂

In all seriousness, it has been fun putting these posts together even though they take a long time to write each night. It would be greatly appreciated if you subscribe to the blog! Each time you go to a new post, you should receive a popup asking for you to subscribe. Thanks in advance for reading and looking forward to tomorrow’s post!

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My Decision On Moving Forward With A Lawyer – To Pay Or Not To Pay, That Is The Question