New Law Allows Association To Demand Rent To Pay Assessments

On June 1, 2010 Governor Crist signed Senate Bill 1196.  A part of the Bill provides that:

“If the unit is occupied by a tenant and the unit owner is delinquent in paying any monetary obligation due to the association, the association may make a written demand that the tenant pay the future monetary obligations related to the condominium unit to the association, and the tenant must make   such payment. . . . The association . . . may sue for eviction . . . if the  tenant fails to pay a required payment to the association.”

This law applies to Condominiums (F.S.718.116(11)), Co-operatives (F.S. 719.108(10)) and HOA’s (F.S. 720.3085(8)).  The effective date of the new law is July 1, 2010. TR

This law gives Associations a very powerful new tool in their arsenal to collect past due assessments from owners that are renting their property.  This law allows the Association to demand the rent from the renter and requires the renter to pay the rent to the Association until the assessments are current.  If the renter fails to comply, the Association can evict the renter under the expedited procedures of Chapter 83, - The Landlord/Tennant Act.  This law is vastly superior to the current law which required the Association to actually file a lien foreclosure lawsuit to collect rents and is much more efficient and less expensive than the costly procedure of seeking the appointment of a blanket receiver.

Further, as the law applies to “any monetary obligation due to the  association” it can be used to force a renter to pay for past due fines and other charges owed by the Owner to the Association.

Although the law is not effective until July 1, 2010 we believe Associations can send letters now demanding that the rent due on or after July 1 be paid to the Association.  Please note that an Association should not pursue this remedy without consulting with their legal counsel first. We have developed forms for this purpose and can assist Associations in aggressively pursuing the rents under the new law.  Please contact us for more information.   

CONDO & HOA LAW GROUP, LLC