Tuesday, July 13, 2010

New Bill Demands HOA Fees Paid by Tenants

As of July 1, 2010, the Florida's Senate Bill number 1196 will take effect. One of the changes that will accompany this new bill is the right of Homeowner Associations to demand payment, without taking legal action, from tenants occupying a unit owned by a non-paying, non-resident owner. If a parcel is occupied by a leasing tenant and the owner is delinquent on any financial obligation to the association, the association may demand the tenant to cover these delinquent amounts. This obligation continues until the association releases the tenant or the tenant vacates the unit.

If the tenant has prepaid several months of rent at the time the tenant receives notice of the obligation to pay the outstanding amount, the tenant has fourteen days from the date of receipt of the demand to provide the association with written evidence of prepayment. If the tenant provides this written evidence, he or she will receive a credit in the amount of prepaid rent. Likewise, the tenant will receive a credit against rent payments due to the owner of the parcel in the amount surrendered to the association for delinquent monetary obligations.

A tenant will not be responsible for increases in the amount of monetary obligations due the association unless the tenant receives written notification of the increase at least ten days before the rent becomes due.

Tenants who respond in good faith to their association's demands will enjoy immunity from any landlord-tenant claim brought by the owner. However, if a tenant fails to meet the monetary obligations demanded by the association, the association is within their rights to stand in the shoes of the landlord/owner and file suit for eviction.

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