Condo owner seeks protection of rights

     By Barbara Holland, CPM
      Q. I have owned a condominium in a resort area for 16 years and have been renting it out by the week. Recently, I was informed by the board of directors that they plan to recommend to the general membership that weekly rentals be prohibited. The shortest rental period would be one month. Would I be grandfathered if this recommendation becomes part of the covenants?
      My second question concerns fines levied for actions by tenants in violation of the covenants. Must a homeowner's association give at least one warning before issuing a fine?
      I received a letter from my association stating that I was fined for two speeding incidents by my tenant. No warning has ever been issued. The association refused to reconsider the fine even though my tenant denied the accusations. When I asked about receiving only a warning for this first incident, the board stated that the requirement for a warning no longer appeared in the covenants. Please comment.
      A. In order for the association to make a change to disallow weekly rentals, they must have a quorum at the annual meeting. In addition, the required percentage of owners supporting this amendment must be met. Please refer to your covenants; you probably need at least a majority of the units (not just a majority of who attended the meeting). Your covenants could require a higher percentage.
      In addition, this proposed change may fall under the category of material amendments. If this is the case, the mortgage lenders would also have to approve the change. Again, this section would be found in the covenants; generally it requires 67 percent approval.
      There is a possible legal question. If the association units were marketed as a resort condominium and if the covenants specifically stated that weekly rentals are allowed, you may have a legal right to be grandfathered. It would not be automatic, unless any changes to the governing documents included this provision. The proposed amendment could be amended by you at the annual meeting to include a grandfather provision. Consult an attorney for further details and to protect your rights.
      As to the second question, the board informed you that the first warning requirement was no longer part of the covenants. My question is: What happened to it? If the association eliminated it, the homeowners would have had to approve the change at a duly noticed meeting with a specific agenda informing the owners of the proposal.
      Assuming it was approved, the association would have an obligation to inform owners of the change in writing. Additionally, SB 314 Section 5.6b states that an owner has the right to a 30-day notice of an alleged violation before the association assesses a fine.
      Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.
      Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.