WHAT TO DO IF A TENANT IS DISREGARDING YOUR ASSOCIATION’S RULES | San Francisco HOA Management

Owning a San Francisco property in an HOA or a condo association means agreeing to that association’s rules and regulations. When you live in such an association, that’s pretty easy. You’ll have to follow the rules that correspond to parking, common areas, cleanliness, and decorating. There may be rules about what you can and cannot display on your balcony or your patio. You might have limits on the size and number of your pets. 

You can keep yourself compliant, but what about your tenants? 

A lot of investors buy units in San Francisco association-run buildings without thinking about what it really means to be held responsible for someone else’s behavior. 

When tenants don’t follow the HOA rules, you’re putting yourself in an uncomfortable position with the board of your association and the entire building. And, you’re not even living there so you don’t know the particulars of any situation involving your tenants and your HOA. 

You’re likely to face some fines and penalties and if there’s a gross violation or a refusal to come into compliance, things can escalate quickly and you could find yourself in court, either fighting your HOA or trying to evict your tenant.

Here’s what you can do to manage and avoid such conflicts.

EXPECT TO HEAR FROM YOUR SAN FRANCISCO HOA

There are lots of details to juggle when you’re renting out a property in an association. First, you have to make sure you’re even able to rent out your unit. Some HOA and condo associations will have restrictions about how and when you can rent your property. Always investigate this before you buy, especially if you’re planning to rent your unit right away. New laws in California prohibit associations from restricting too many of the units in their building or community from being rentals. Requiring that rental units remain below 25 percent of the members is no longer acceptable, thanks to a 2020 bill signed into law.

Next, there’s the matter of the HOA fee. Generally speaking, the owner of the property is responsible for paying the association fees as well as any special assessments. Some of the owners we work with pass this cost onto their tenants by including it in the rental amount. 

Fees and penalties will always be your responsibility - even when it’s the tenant causing a problem. 

The HOA in your building will not go after a tenant for any broken rules or disregarded regulations. Instead, they’ll get in touch with you - the owner. Fines will also be assessed against the landlord, not the tenant. If your tenant breaks a law or commits a crime, the association has the authority to report it directly to the police and if a tenant’s car is illegally parked, the association can tow the car at the tenant’s cost. Otherwise, the responsibility is still yours. 

1. INCLUDE HOA RULES AND REGULATIONS IN YOUR SAN FRANCISCO LEASE AGREEMENT

The lease agreement you sign with your tenant should be specific and detailed and it should also outline the tenant’s responsibilities in terms of complying with the HOA’s rules and regulations. Tenants will not have a contract of their own with the association; this is strictly between the association and the owner of the apartment, condo, or unit. 

Include the HOA rules and regulations in your lease agreement, as an addendum if necessary. This includes the CC&Rs, the bylaws, the articles of incorporation, and any other governing documents that may apply. As the owner of a property within an association, it’s your responsibility to provide this information to your tenants to ensure a smooth transition into the community. 

Have your tenants sign off that they received them and that they understand they’re responsible for following them. Include the consequences of violating any of the rules, including the potential for eviction. Lease violations that are uncured are considered just cause, so make sure the HOA responsibilities are listed in your lease.

You’ll want to be generally familiar with the HOA’s governing documents before you pass them on to your tenants. They may have questions about some of the rules, and you’ll need to be prepared to answer them. 

2. CHARGE ANY HOA FEES AND PENALTIES BACK TO THE TENANT

While the owner will be charged by the HOA for any problems caused by the tenant or rules broken, you can recoup the amount back from the tenants as long as your lease stipulates such. Include the language in the lease, and then charge your tenants for the violation. 

Send a letter to your tenants outlining the rule that was broken. Include a copy of the correspondence you likely received from the HOA, including the amount paid. You can add this to the tenant’s rent or ask them to pay you back within a specific timeframe. 

3. UNDERSTAND TRANSFERABLE AND NON-TRANSFERABLE RIGHTS

Owners have rights within the community that renters will not have, such as the right to vote for board members. Renters are temporary members of the association because they live there. Owners have a more powerful and permanent stake in the community and the association by virtue of their ownership. That doesn’t mean tenants don’t have their own set of rights and responsibilities. 

• Most HOAs will allow owners to transfer their rights to common areas to their tenants. If there’s a fitness center or a pool in the building, the tenants renting a home can typically use those things. But, they’ll be held to the same rules and standards as homeowners. 
• Tenants will typically not be permitted to hold a leadership position in an association board, nor will they be able to vote in board elections. They may, however, be invited to attend association meetings. 

Pets are allowed for tenants if they are allowed for owners. However, landlords may have their own pet policies in place outside of the HOA rules and restrictions.

4. WHEN RENTERS VIOLATE THE HOA RULES

When a renter violates any of the association’s rules and regulations, the association will contact the property owner with an action. 

Owners in an HOA are ultimately accountable to the association and the community for the actions of their tenants. Therefore, any infractions on the tenant’s part will be held against the landlord. This is something you need to expect when you rent out a property within an HOA.

You’ll receive the notice and you’ll also be charged any applicable fines or fees. If the tenant has multiple violations or if fees and fines go unpaid, boards can sometimes approach the landlord to demand the eviction of the tenant. This authority must be given through the association’s governing documents.

Crimes are different. If your tenant breaks the law, the HOA board does not have any responsibility to go through the owner. Instead, the board can report the tenant directly to the appropriate authorities.

5. SCREEN TENANTS FOR HOA COMPLIANCE 

Avoid tenants who are likely to cause problems with your HOA. 

Seems easy enough, but it might require some extra screening. 

Invest in a consistent, legally compliant screening process that includes a review of prior rental experiences. In addition to on-time rental payments, you want to be sure they didn’t gather a lot of HOA violations. If there was a penalty, you want to make sure they corrected the situation immediately and paid the fine.

6. EVICTING SAN FRANCISCO TENANTS FOR HOA VIOLATIONS

It shouldn’t come to eviction. 

If your tenants refuse to comply with the association rules and regulations that they agreed to when they rented your unit and signed the lease agreement, have a conversation. Remind them of their responsibilities and highlight the part of the lease that concerns HOA compliance. 

Whether the problem is parking, pets, trash, or some other nuisance, make sure they understand the effect this is having on the community and on their ability to stay on the property. 

Always document your conversations. Follow up any verbal discussion with a written summary of what was discussed and agreed to. 

If you simply are not getting anywhere and you have to evict, serve the proper notice and get some legal help so everything is done properly and lawfully. 

Strengthen San Francisco Tenant Relationships

You’ll rarely have trouble with your tenants when your relationship is strong. Make an effort to be positive and respectful right from the start of the tenancy so you can avoid uncomfortable conflicts about HOA rules and fines. 

SAN FRANCISCO HOA PROPERTY MANAGEMENT HELP

We understand San Francisco tenants and HOAs. At BanCal Property Management, we’ve been working with associations, owners, and residents since 1987. We can make sure your tenants are compliant with HOA requirements and that your property is protected. 

To hear more about our HOA management services and to ask questions about San Francisco’s HOA laws, please contact us. We also welcome your comments, questions, and suggestions for topics you want to learn about, so please share those too. We’d love to address an HOA question you have in one of our future blogs.