|Return to List|
BOD Rental Change Explanation
Posted on Oct 22nd, 2019
Why is MGMA requesting a vote to change the rental/tenant policy to a minimum of 12 months? (This change does not impact Fairways Villas which would continue to have shorter rental periods.)
The covenants of Magnolia Greens were originally written by Landmark and a short rental period was applied to promote the sale of homes for builders in this community. With less than 57 lots left for home construction, the time has come to revise and extend the rental period in order to have a more stable neighborhood. Additionally, a more proactive approach is needed to avoid AirBNB rentals and their potential issues. Therefore, MGMA Board of Directors contacted legal counsel for advice in the needed process and accompanying documentation. What we have is an opportunity to balance community and property owners’ needs as identified below.
It is better to have 12 month or longer rentals in most of MG as it will avoid vacation rentals and high community turnover with its potential for more vacancies. With a 90 day minimum rental period, homeowners can find a neighboring house change tenants four times a year. This short term rental attracts temporary “just passing though” sort of tenant without long-term ambitions or commitments to the community. Short term renters are also more likely to ignore or violate association rules and less likely to obey upkeep standards. On the other hand, long term renters historically are generally more responsible and have a more vested interest in a community’s long-term success.
Without going into specifics, our management company receives complaints on a consistent basis to address a variety of violations on rental properties. More short-term renters within a development can result in higher liability insurance rates and lower property values, so an increase in the minimum rental period might protect HOA members financially as well as the individual landlord. For these reasons many HOA’s place a minimum rental period of 12 months (and some HOAs go so far as to restrict the percentage of rental homes in an area.) Compass Point and Waterford have a 12 month minimum rental period. Renters with longer leases will expect use of the amenities and in this way CEPCO will receive documents properly identifying people using our facilities.
The enclosed ballot in your annual meeting packet will allow the property owners of MG a vote on the rental amendment. Your elected Board of Directors unanimously recommends that you vote “yes” for the amendment.
MGMA Board of Directors