HOAs can solve the storage issue

The homes in townhouse developments and other gated communities usually all have their own garages or carports, but there is often also a demand for additional permanent parking or storage areas for trailers, bikes, boats and caravans.
And because there is usually not enough space to create an extra parking bay or storage unit for each household and still have enough parking for visitors, the issue can become quite thorny for the body corporate or home owners’ association (HOA).
However, says Berry Everitt, CEO of the Chas Everitt International property group, the HOA can resolve the issue by passing a resolution that no-one may have exclusive use of any limited common amenity (such as the spare parking bays in the estate) unless they pay rent to the HOA.
“And this rent can then be used to help keep everyone’s monthly assessments or levies down.”
Writing in the Property Signposts newsletter, he says It is recommended that the rentals charged should be based on local parking and storage rates, and that the spaces should be leased and paid for annually to reduce bookkeeping and ensure a steady income stream for the HOA.
“In addition, multiple rentals by one owner should not be allowed unless supply should for some reason exceed demand, and then only if the HOA reserves the right to review the situation annually.”
The HOA should also be very wary, Everitt says, of renting parking or storage space to non-residents. “Security could easily be compromised by doing so and besides, the HOA would have little or no recourse against non-residents who defaulted on rent or perhaps damaged common property.”
Issued by Chas Everitt International

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