Notice of Renter. Before an owner leases his/her unit/home to a tenant, he/she must provide the association the name and contact information of the tenant. (Civ. Code § 4740(c).)
Tenant Defined. A tenant is not the same as a guest. Tenants have a specific status under the law and have the right to full possession and control of the unit they rent, subject to the terms of their lease or rental agreement. Guests have no possessory rights. Section 1940 of the Civil Code defines tenants as “persons who hire dwelling units...including tenants, lessees, boarders, lodgers, and others..." Civil Code §1925 defines hiring as “a contract by which one gives to another the temporary possession and use of property, other than money, for reward, and the latter agrees to return the same to the former at a future time.”
Rent Defined. Rent is defined as consideration for the use or occupation of property. (Black's Law Dictionary.) Consideration can be money, goods, services or other value. Accordingly, the gratitude of a relative or the affection of a mistress could both qualify as rent and the occupant deemed a tenant. Civil Code §1951 defines rent as “charges equivalent to rent.”
Copy of Lease. If an association's governing documents require that lease agreements be for a particular period of time (banning short term rentals is common), the only way it can verify compliance is to require the landlord provide a copy of the a signed lease agreement. NOTE: See changes in allowable rent restrictions. To show compliance with the restriction, the only relevant information is an executed agreement bearing the names of the parties, the date of the agreement, the lease term, and signatures. Accordingly, you can redact financial and personal information from the agreement before submitting it to the association.
Lease Addendum. Associations can adopt lease addendums (sometimes referred to as a supplemental lease agreement) which assigns rents to the association in the event the landlord becomes delinquent. Whenever a unit is leased, the owner and tenant are required to sign the association's lease addendum that requires, among other things, (i) the lease be for the entire unit; (ii) no assignments or subleases are allowed; (iii) the lease is for not less than one year; (iv) tenant agrees to comply with the association’s governing documents and be subject to the its disciplinary procedures; (vi) owner assigns rents from his unit to the association in the event he becomes delinquent; and (vii) tenant agrees to pay the owner's assessments should he become delinquent.
Recommendation: If your association has problems with delinquent landlords or problems with rules enforcement involving tenants, a lease addendum can solve both problems.
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.