Blog

Condo Clubhouse Rental Agreement

Whether a community cashes in – or pays [see sidebar] – by renting its equipment or other facilities for a fee depends largely on the size of the association, the types of equipment involved, and how that equipment is defined and operated. When condominium developers walk boat pools or a domestic spa as homeowners` benefits, these facilities are typically operated by an outside company that is completely independent of the owners` association itself and is therefore not available to a board of directors as a revenue-generating entity. As president of Great North Property Management in Portsmouth, New Hampshire, he says, “There is absolutely no right to rent [facilities] to third parties. Renting outdoors raises a number of issues, ranging from insurance and liability to liability. Many of the properties we manage do not allow any use by Deninser. Anyone thinking about it should first check their condodocs to see if [Third Party Use] is allowed. Some documents are very specific to how the common institutions can be used. The members of the board of directors must decide whether they have the right to act as rental agents. In contrast, some sort of clubhouse or common space is standard equipment for most HOAs, and associations usually have full control of these areas and can exercise options when it comes to how they are used. In most cases, HOAs tend to keep these amenities only for the resident.

Bernie Gitlin, president of the Massachusetts-based Global Insurance Network, explains why associations can unsubscribe from renting their joint facilities. However, a person who suffers from an injury related to the use of the club may bring an action against both the person renting the clubhouse and the association. 5. Current Valuations: The club house cannot be rented to a resident if The Grove`s annual assessments and other amounts due to the association by that resident are not up to date. Do you prefer winter activities? A municipality under construction at the Loon Mountain Ski Resort in New Hampshire will have new ski lifts that invite residents directly into the common area….

Categories
No categories