Successful Leasing in a Community Association 

Chapter 1 

Welcoming the Tenant

Tenancy is a fact of life in community associations. The managers and board members who make the effort to include tenants in the community and consider them valuable members of the group will have a positive and rewarding experience. A few simple steps, outlined here, can reduce the issues and concerns sometimes associated with leasing to non-owners.

Keep the Rules Reasonable and Legal

The rules for tenants are (or should be) the same as the rules for owners--in other words, rules are for residents. The challenge is making sure that the tenants know what those rules are and creating incentives for compliance. In order to do this, you need the cooperation of the owners.

There are also rules regarding tenants--or, more accurately, regarding leasing--and these require a little more attention. The primary consideration is that these rules should not conflict with association governing documents, state law, or federal law--in that order. The laws take precedence over board-approved rules; therefore, any rule in conflict is unenforceable.

Have your association's legal counsel review your leasing rules to ensure that they agree with your governing documents. If you find your governing documents do not support the rules you believe are prudent, you might consider amending your association bylaws or governing documents to include leasing guidelines or restrictions or, at least, allow for the rules you wish to establish.

Make sure that whatever rules you decide on are reasonable and enforceable.

Treat Tenants with Respect

The concept that tenants are less desirable residents than owners is an unfortunate stereotype. Just as there are owners who contribute to the well being of an association, many tenants have that same potential. There are several reasons why it makes good sense to treat tenants exactly as you would an owner.

Many people have their first experience in common-interest living as tenants in community associations. They may discover that the community has exactly what they're looking for: good location, favorable architectural style, excellent facilities, and acceptable restrictions. If that experience is positive, they may buy a home in that community and even become active in association activities. If not, they will likely move on.

Since today's tenants may be tomorrow's board members, treating them courteously, respecting their rights, and encouraging them to participate in the association is in everyone's best interest. It also eliminates tensions that may otherwise arise among owners, tenants, and associations.

Tenants have most of the same rights as owners, so treating them the same as owners may be more than good practice, it may be required by law. Certain rights, of course, such as the right to vote or serve on the board of directors, may not be transferable from owner to tenant. The governing documents of your association will control on this issue, and legal counsel will help you determine what is and is not within legal boundaries where tenants are concerned.

Communicate with Tenants

Strong communication with all members of the association--resident owners and tenants--is vital to the success of the community. Communication is most successful when it takes a variety of forms--personal, public, written, spoken--depending on the message being delivered.

Personal communication with tenants is particularly challenging, not because the association is unwilling, but simply because it too often doesn't know who the tenants are. In order to maintain a current list of all residents, the association should develop a system for collecting information about tenants and nonresident owners. This list is useful for making phone calls and sending correspondence.

There are numerous effective methods to let tenants know what's what. Be sure to select the method that is appropriate for the message.

Welcoming Committee: Personal contact, because it involves a two-way exchange, is a very effective means of communication. Contact can be made with a visit or phone call, and it can be done by a group of residents or by members of the board of directors.

Depending on the size of your association and the level of involvement of its members, you may want to consider forming a welcoming committee that would visit each new resident within a couple of weeks of move-in. The board of directors might double as the welcoming committee; this has the advantage of introducing the board to new residents.

Provide the person making the personal contact with a standard list of points to convey to each new resident. This might include a brief list of the association rules, information on the amenities, or contact information if they have questions. If you have a community handbook, the committee could deliver it to the new residents or let them know where to reference a copy of it.

If a welcoming visit is not a viable option for your association, consider a simple welcoming phone call. This call could come from welcoming committee members or board members. A welcoming call from the association manager is also appropriate, but it may be less meaningful than a call from another resident or board member.

Community Handbook: The more information that can be put in writing and delivered to new residents, the better. This is especially true for tenants who sometimes do not receive detailed information about the community association from their nonresident owners. Putting all relevant documents in a packet or handbook provides a convenient source of information for everyone.

Newsletters. Newsletters are an effective and low-cost means of communicating with all residents. Research has shown that nearly all residents read nearly all of their association newsletter. A wealth of information--including reminders of rules--can be disseminated on a regular basis.

Bulletin Boards. Bulletin boards are useful for posting rules or making announcements. However, they should not be used for important notices that may be overlooked. If you have a large community, more than one bulletin board may be useful if you can place them in different locations.

Fliers. Fliers have many uses and are easily mailed or slipped under a door. Information that never changes, such as the association rules, lends itself a method that can be produced in quantity at relatively low cost.

E-mail. As more and more people go online, e-mail is emerging as an effective means of communications. Consider establishing an account that allows you to communicate with residents by broadcast e-mail. You can also establish groups of recipients such as the board of directors, committees, tenants, and others for specific types of communications.

[This sample includes only part of Chapter 1.]