Property Owner's Rights & Priveleges

Ability to Rent

      

Your Right to Rent in Your Community

 

Unit/Homeowners in New Jersey are routinely permitted the absolute right to rent their units.  The right to rent is typically provided for in the Governing Documents.  Most Documents require that the terms between the Unit Owner/Landlord and Tenant be set forth in a written lease.  In addition, the lease must clearly reflect that the occupancy of the unit is subject to the Association’s Governing Documents including the Rules and Regulations.

 

Most Associations require that the lease be provided to the Association’s Governing Board at least (ten) days before the Tenant takes occupancy.  Although an Association in NJ cannot “screen” prospective Tenants the Association is permitted to require the submission of the lease for approval and so as to insure that there is a clear indication that the Community’s restrictions will be complied with.  A failure by the Tenant to comply with the terms of the Association’s Governing Documents is considered to be a default under the lease.  If the Tenant fails to comply with the Association’s Documents then in addition to all other

remedies that the Association may have it may notify the Unit Owner of the violation and demand that it be corrected through the Unit Owner’s efforts typically within (30) days after the notice. If the violation is not remedied then typically the Unit Owner at his/her expense must immediately file and prosecute an eviction action on account of the violation. If the Unit Owner fails to file and prosecute, then the Board has the right, but not the duty, to prosecute the eviction as Attorney in fact for the Unit Owner at the Unit Owner’s sole cost and expense including all costs and Attorney fees occurred by the Association.

 

Most Association’s adopt an Administrative Resolution which sets forth the Association’s leasing protocols and procedures. This document is typically referred to as a “lease rider.” The lease rider is to be executed by the Unit Owner/Landlord, Tenant and a representative of the Association. The rider becomes an operative part of the lease. The lease rider will also serve to acknowledge the minimum mandatory rental term required by the Association’s Documents (typically one year) and will make provision for the assessment of an early termination penalty if the lease is terminated prior to the expiration of the minimal mandatory rental term. Most Associations charge an administrative lease review fee which has been approved by the Courts of New Jersey.

 

It should be underscored that the Unit Owner/Landlord is responsible for the actions of his Tenant and the Tenant’s guests. Rental of a unit does not relieve the Unit Owner from the responsibility to fully and timely comply with the Owner’s assessment fee obligations to the Association. A failure of the Unit Owner to comply with these obligations typically allows the Association to demand that the Tenant forward rent payments to the Association to satisfy the Unit Owner’s arrearage. This is referred to as an “assignment of rents.”

 

Lastly, most Documents prohibit a Unit Owner from renting out less than the entire unit. In other words, a Unit Owner cannot rent out bedrooms to different individuals. Occupancy of a Unit by a Tenant does not operate to vest the Tenant with membership in the Association. However, that Tenant is permitted to use and enjoy the Association’s property including its recreational amenities. Unless the Unit Owner/Landlord has given a proxy to the Tenant, Tenants do not attend Association meetings nor can they vote. about you.