Condo board adding mandatory damage deposit on units being used as rental properties?

[cornelius85]

As the title states I got notice today that the condo board for our Airdrie rental unit will now be charging a $800.00 damage deposit on units that are being used as rental properties? Considering I own the property, how can they make me pay a damage deposit because I rent the unit out? My inlaws went to the last annual general meeting and this wasn't even brought up, so I can't see how they think they can make me pay this? It is obviously yet another attempt to rid the complex of renters but it has really pissed me off, and I want to know what leg I have to stand on.

We have owned this unit since the complex went up in 2007 and this is a new "policy" they are saying will be instated as of next month. If the value of the unit wasn't less that what we paid I would seriously consider dumping the unit, but it isn't so looks like we have to hold onto it for now.

Any help/suggestions are appreciated.

[Weapon_R]

I've seen this in a lot of condo board bylaws. It's fairly common in my experience.

[revelations]

Our condo building tried this. They have no way to know who is actually a rentor unless the owner lets them know.

[Xtrema]

Common practice. But it's strange that it wasn't voted on. Check your annual report to see if your in-laws missed something.

In the grand scheme of things, it's only $800 and it's a deposit which I assume you'll get it back unless your tenant did something stupid for the board to act on taking your deposit.

Because I'm sure that you are losing more than $800 if you sell.

[cornelius85]

It has never been in the bylaws, and it wasn't added to the bylaws as far as we knopw. For someone who has never attended any condo board meetings is it the same as a non profit society in terms of adding to the bylaws? Don't you need a certain percentage of the members to vote in approval of a change? Forthermore if there is a proposed change don't they need to make members aware of a change being put forth before it is adopted? The notice does not allude that it is a new bylaw, but a new "Rental Policy". What happens if I do not pay the deposit. It is definitely less than the loss on the sale, but I am not going to bend over to them either. It is the principal of this and is just them trying to bully the owners who rent out the units into selling. I would love more than anything to be rid of this who condo board bullshit, but taking a 20-30k hit is not in the plans right now.

[Mixalot27]

To make additions to condo bylaws each owner must be given a copy of the proposed changes to the bylaws and allowed a 14 day period to review them. 75% of the owners then have to sign in agreement of the new additions.

The bylaws for my condo are about as thick as a phone book and not all that user friendly in terms of language. So there may be a clause already in the bylaws that allows them to charge this deposit.


Originally posted by revelations
Our condo building tried this. They have no way to know who is actually a rentor unless the owner lets them know.

Contained in the bylaws for my condo is that the owner must notify the condo board in writing of any new tenants who will be occupying the unit. I'm not sure what consequences or recourse the condo board has against the owner if this is not done however.

[roll_over]

Just tell them you let the inlaws live there free and your the best son? in law

[Hallowed_point]

The fact of the matter is , that there are some tenants out there who will damage common area property outside of your unit which you own. This needs to get paid for somehow. This is prudent for the condo board to charge a deposit on tenants as it forces the owner to screen tenants properly. Buildings can really go down the tubes with out of town owners who could care less who is living in their unit.

I don't like how they were sneaky about it if that was actually the case..but it's pretty much par for the course with condo buildings. Having worked at a condo building, I've seen first hand what some of the tenants (and sometimes owner's!) will do eg. smashing intercoms, punching holes in drywall, dumping old furniture in stairwells. You name it, it's happened.

It's the down side of condo living for sure if you have a lot of sketchy tenants in the building. Of course, there are the good tenants as well but the bad ones can make everyone suffer.

[yellowsnow]

my condo board has that rule in place... but i just ignore it. if they catch me, then i will fork it over. i've been renting it out for almost 2 years, and never had any problems. it's the same tenants, so they probably think they're the owners :)

[revelations]

It also means more work for the mgmt co. so if your building is RELATIVELY idiot-free, you might just escape under the radar.

[JustinMCS]

Common place. I can see why. Renters don't give a shit. I am on the Condo Board at my building and there are only a couple GOOD renters. We have the same policy.

[jdmXSI]

Better to ask for forgiveness than permission... But I can see the reason why as I live by the uofc and see some rowdy people from time to time.

[heavyfuel]

I can see how they'd want DD for common areas and such but how can the board be sure who damaged what if the situation ever arose? BUT- some owners can possibly not give a fuck about common areas just the same as renters, so what gives? Sounds like BS to me.

[Ven]

My condo board tried that too and I'm pretty sure no one bit on that. Wasn't in the bylaws and wasn't voted on. Typical common area damage is already factored into the fees, doesn't mater if an owner or a renter scratches a wall moving a dresser, it's covered. Common area vandalism is handled by the police, camera footage, the boards' legal department, and is also factored into the fees should no money be recovered. I'm sure it's just a way to puff up the financials.

[Hallowed_point]

If it's a deposit what is the real concern? You will get your money back unless you have a gang banger dirt bag tenant. An $800.00 deposit isn't the end of the world..and your in for a shock if you ever get a special assessment if your worried about this.

[Evo prec]

This is a good thing if you think about it. All the damage renters do moving and not caring about the acutal building will save you money in the long run with a special assesment or the condo fees going up.

[Hallowed_point]

Originally posted by Evo prec
This is a good thing if you think about it. All the damage renters do moving and not caring about the acutal building will save you money in the long run with a special assesment or the condo fees going up.

Exactly.. pay me now or pay later..I admire them being proactive. Board members are volunteers and whatever they vote in they pay as well. Sure you get some on a power trip, personal agenda but that's like any position of power.

[cornelius85]

Originally posted by Evo prec
This is a good thing if you think about it. All the damage renters do moving and not caring about the acutal building will save you money in the long run with a special assesment or the condo fees going up.

Just to be clear these are townhomes, not an apartment complex. While I guess there is common property like the playground and garbage buildings I can't quite see the issue of property damage as much as an apartment that has a foyer, and common hallways that constantly incur damages. They are already fining people who aren't picking up after their dogs. That I agree with and I can understand landscapers not wanting to be pooper scoopers as well.

$800.00 isn't a lot of money, but I am not the type to just hand over $800.00 just because. It is my money, and I would rather it remain in my bank account where I have control over it. Again this is more over the principle of this change, and I do not think that it was implemented the proper way to begin with.

I will update if I get any info back. I had a warning from the management company just recently about our tenants dog barking and wanted to get more information from them before I talked to the tenant, and they couldn't be bothered to reply to emails or phone calls, so I imagine I wont get any response from this either.

[littledan]

ok i'm really confused about this.... so it's an $800 DD.... but when do you recoup that? when you sell? each time a renter comes and goes you take back the deposit and then give it again? sounds like a money grab to me.

[cornelius85]

Originally posted by littledan
ok i'm really confused about this.... so it's an $800 DD.... but when do you recoup that? when you sell? each time a renter comes and goes you take back the deposit and then give it again? sounds like a money grab to me.

Exactly my way of thinking as well

[HiTempguy1]

Originally posted by cornelius85


Exactly my way of thinking as well

And on top of this, what happens if some sort of assessment IS levied? Do they take your DD without you having any recourse?

I'd rather them have to fight me for the money (even if deserved) then just hand it over, especially if it is a "he said/she said" thing.

[cornelius85]

Originally posted by HiTempguy1


And on top of this, what happens if some sort of assessment IS levied? Do they take your DD without you having any recourse?

I'd rather them have to fight me for the money (even if deserved) then just hand it over, especially if it is a "he said/she said" thing.

I could see this becoming an issue as well. I am going to have to pay this, not the renter, and there is no way I can ask the renter to pay this. If I pay the deposit and something happens it means I still have to try and get this money from the tenant.

How can they say that a renter is going to take any less care than an owner would? For all the people that live in condos the majority take care of their space, and the common space. There is no way that it is fair to say that it is only renters as you will get bad apples in either group. To limit the liability to renters as opposed to everyone is hardly fair.

The main reason they seem to be doing this is to lay blame on the renters and put pressure on people like us to sell. Obviously the condo board is going to be comprised of owners and really looking after their own interests.

[Stunt66]

some of you guys are blowing this way out of proportion. All they want is a dd for damages due to rentals. How do you figure this to be a cash grab when you get it back in the end if you sell or stop renting? I have a townhouse rental too and paid $500 dd to Rancho. You legally own the place and all but the condo board still runs the show.

[cornelius85]

Well it sounds like there is a clause in the bylaws that they can instate a tenant depsoit if they see fit. It sounds like we will be SOL. I don't like the fact that they are holding $800.00 for as long as I use it as a rental. Sure I will get it back if I ever did sell, or quit renting, but that was never the intent as it was bought purely as a rental.

[whiskas]

Originally posted by Hallowed_point
The fact of the matter is , that there are some tenants out there who will damage common area property outside of your unit which you own. This needs to get paid for somehow. This is prudent for the condo board to charge a deposit on tenants as it forces the owner to screen tenants properly. Buildings can really go down the tubes with out of town owners who could care less who is living in their unit.

I don't like how they were sneaky about it if that was actually the case..but it's pretty much par for the course with condo buildings. Having worked at a condo building, I've seen first hand what some of the tenants (and sometimes owner's!) will do eg. smashing intercoms, punching holes in drywall, dumping old furniture in stairwells. You name it, it's happened.

It's the down side of condo living for sure if you have a lot of sketchy tenants in the building. Of course, there are the good tenants as well but the bad ones can make everyone suffer.

Exactly. It's not a money grab if it's a deposit, if you get a good tenant then there won't be any issues and you'll get the money back when they move out.

Sounds like the OP doesn't want to put the work into finding responsible tenants to protect his deposit.

[cornelius85]

Originally posted by whiskas


Exactly. It's not a money grab if it's a deposit, if you get a good tenant then there won't be any issues and you'll get the money back when they move out.

Sounds like the OP doesn't want to put the work into finding responsible tenants to protect his deposit.

Way to read a little too much into this. Has nothing to do with worrying about my tenants. It has to do with tying up $800.00 that would do me better sitting in my account rather than a condo boards. There is no getting it back until such time as I sell or I reside there which isn't going to happen any time soon unless the market changes which I don't see

[FraserB]

Since you'll get it back when the current tenants move, why can't you just pass it along to them? One DD to you as the landlord and one to the condo board, both returned upon vacating.

[Hallowed_point]

Condo buildings operate (in theory..) on what is best for the majority.

They are not going to see you losing a couple
bucks in interest as a good argument versus the
security of forcing owners to screen tenants and
put down a deposit. Harsh reality of the situation.

You're going to flip when you get a special assessment
if this is really a big deal to you.

[Xtrema]

Originally posted by FraserB
Since you'll get it back when the current tenants move, why can't you just pass it along to them? One DD to you as the landlord and one to the condo board, both returned upon vacating.

But if tenant fuck up the interior and common area, OP will be double fucked on security deposit.

That said, OP got only 2 ways out. Go silent and wait til ratted out or volunteer $800 and see if he get it back from the board.

[Cos]

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[bleu]

When I was renting, the condo board wanted another 900ish in addition to the DD I gave to the landlord. The condo board said this was for the common areas. I ended up not paying it and was never asked for it again. I am quite happy to be out of that condo.

[HiTempguy1]

Originally posted by Cos


Even our reserve fund cannot be used without signoff for an accountant.

You'd go to small claims court over $800? Pay a lawyer to represent you for that much?

By assessment being levied (poor choice of words), I was meaning in general, whether it was for something to be fixed in general for the whole condo complex, or them having "determined" your tenants were at fault for damage caused.

There is no benefit to you for them having the money. :dunno:

[Cos]

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