Amending your association documents to reflect your short-term rental (STR) policy is an important step in ensuring clarity, consistency, and enforceability within your community. Whether your HOA has decided to expand STR allowances or restrict them, here’s a guide on how to approach the amendment process effectively.
Review Your Current Association Documents
When it comes to leasing of any kind – be that long-term or short-term rentals – your association should have a clearly defined policy outlined in your governing documents. Begin by thoroughly reviewing your current association documents, including the bylaws, declaration, rules and regulations. Identify if there are any existing provisions related to rentals or leasing that may need to be updated or amended to address STRs specifically.
Identify Your STR Objectives
Before drafting an amendment, carefully consider the specific objectives and parameters you want to achieve with your STR policy. Do you want to impose rental duration limits, registration requirements, occupancy restrictions, approval processes, or other enforcement mechanisms? As you speak with the broader community, you will need to be able to clarify the goals and intentions behind each aspect of the policy so spend time thinking through them now.
Draft Proposed Amendments
Based on your review and identified objectives, draft the proposed amendments to your association documents that reflect the desired STR policy. Clearly articulate the changes to existing provisions and incorporate new provisions as necessary. Ensure that the language is clear, concise, and legally sound. It’s a best practice to seek legal review of the proposed amendments to ensure compliance with state laws, local ordinances, and any contractual obligations.
Notify Homeowners
Once the proposed amendments have been drafted and reviewed, notify homeowners of the proposed changes. Provide them with ample opportunity to review the amendments and offer feedback or input. Consider holding informational meetings or distributing materials to explain the rationale behind the proposed STR policy.
Vote on Amendments
Follow the procedures outlined in your association’s governing documents for amending the documents. This typically involves providing notice of the proposed amendments, holding a meeting or vote of the membership, and obtaining the necessary approval threshold as specified in your governing documents.
Once the amendment passes a board vote, it’s important to educate homeowners on the new policy and be consistent with your enforcement. If you have questions about managing your Chicago condo association or would like help from a professional association management firm, call us at First Community Management today.