Condo Media - September 2016 - 45

In addition, associations may want
to require that all unit owners renting
out their unit obtain and maintain an
"HO6 policy," a condominium unit
owner insurance policy (or equivalent), as well as an "HO1733," a unit
owner's rental to others endorsement.
Some associations even require that
tenants obtain an "HO4," a tenant
homeowner's policy.
GRANDFATHER, LOTTERIES
AND HARDSHIP PROVISIONS
While there are reasons to restrict or
limit the practice of rentals, there are
also a number of compelling exceptions,
and associations should consider grandfather clauses and hardship provisions.
A grandfather clause would exempt
some or all current units from new rental
restrictions. For example, all units not
currently being rented under a valid lease
could be immediately subject to the new
bylaws but any units currently being
rented out under a valid lease will need to
be treated differently as Massachusetts
landlord/tenant laws will prohibit the
condominium from terminating a valid
lease mid rental term. A grandfather
clause would allow these units to continue their rentals and could also provide
restrictions that unit owners must follow.
If associations determine that they
want to allow a small number or percentage of units to be rented out, they could
consider implementing a rental lottery.
The number of units allowed to be
rented would depend on the character of
the community. For example, a condominium with a large population of older
residents may allow a higher rental cap
due to the likelihood that many owners
may need to vacate their homes for an extended period because of illness or estate
planning. A rental lottery would provide
a way for the association to ensure that
all unit owners have a fair opportunity to
rent out their unit but restrict the overall
number of units being rented at one time.
Even if the association bans rentals altogether, or implements a limited number of units to be rented, the association

Most condominiums allow
for units to be
rented, but associations should
be wary of allowing unrestricted
rentals.

stitute a lien on the unit, which shall be
enforceable as a common area charge.
Community living means learning to
live in close proximity with others and
relying on neighbors to act appropriately
and in the best interest of others. Enacting rental restrictions is another way of
monitoring which people are living in your
condominium and ensuring that their
presence will not devalue your property.

n HOWARD S.
GOLDMAN, ESQ. IS
FOUNDING PARTNER
OF THE LAW

should consider allowing unit owners to
rent their units on a case-by-case basis.
There are some situations that rental is
necessary for a unit owner who would
otherwise be severely disadvantaged
by the rental restrictions. Examples of
hardships would be a unit owner's need
to relocate due to a new job or illness,
or the need for the unit owner to enter a
nursing home. All hardship exceptions
must be specific and contain a narrow
definition of hardship.
Associations should also consider the
estate planning needs of its unit owners.
If an elderly unit owner wants to put their
unit in their child's name but remain living there, the association could consider
making an exception and allowing this
"rental" to continue without being subject to the lottery or other restrictions.

FIRM OF GOLDMAN
& PEASE LLC.
REBECCA A.
ERLICHMAN, ESQ. IS
A SENIOR ASSOCIATE
WITH THE FIRM.

RULES ENFORCEMENT
The association must have the power to
enforce these restrictions and should
consider an amendment that requires
owners renting their units to incorporate
into their leases the terms and conditions
of the association's declaration of trust
and master deed and also specify that
the trust may evict problem tenants who
fail to follow the governing documents
of the community. In addition, associations should consider enacting language
assessing a daily fine on unit owners who
have rented out units in violation of the
rental restrictions. Such fine should conSeptember 2016

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Condo Media - September 2016

Table of Contents for the Digital Edition of Condo Media - September 2016