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Managing tenants day to dayLesson 11 of 21

Academy/Rentals & Leasing

Lease addenda

The document that puts your community's rules inside a tenant's lease.

A lease addendum is a document a board attaches to a tenant's lease that puts the association's rules directly into that contract, so breaking a pool rule or a parking rule becomes a lease violation too. It communicates and enforces existing rules. It cannot create a rental ban or restriction the declaration does not already allow.

01

What a lease addendum actually does

A lease addendum is a document attached to a tenant's lease that spells out the association's rules for the tenant, flags the rules owners most often get fined for, and states that breaking those rules counts as breaking the lease itself, not a separate problem the board has to chase down on its own. That is what turns a tenant rule from something the association hopes a tenant follows into something the tenant is contractually bound to.

It does not replace the owner's own responsibility for a tenant's conduct. See owner responsibility for tenants for how that liability works even when an addendum is in place.

02

What it can't do

A lease addendum sits at the bottom of the authority stack. It can restate and enforce rules that already exist; it cannot create a new rental prohibition, cap, or minimum lease term on its own. Boards sometimes reach for an addendum as a shortcut around amending the declaration. It is not one.

"Boards may impose restraints on leasing by resolution, but these policies must be reasonable, uniformly applied and based on objective criteria... most jurisdictions require that any rules or regulations that prohibit rentals exist by amendment to the declaration, not merely documents that may be adopted by the governing board."

Source: Rental restrictions: Communities fighting corporate investors, CAI Ungated Blog

If your community wants to add a rental cap or a leasing minimum, that change belongs in the declaration amendment process, not in a form attached to next year's leases.

03

The clause that needs a lawyer's eyes

Standard lease addenda are sold with a feature that lets the association collect rent directly from a tenant when the owner falls delinquent on assessments, an assignment-of-rents clause. Vendors describe this as a normal part of the form.

Whether that clause actually holds up depends on your state's law, and this course cannot confirm it for any specific state. Have association counsel review an assignment-of-rents clause before your board adopts one, rather than assuming a form is enforceable because it is widely sold.

Check yourself

Answer before you read the explanation, recalling it is what makes it stick.

A new tenant keeps parking in fire lanes. The lease never mentioned HOA rules at all. What's the board's strongest move going forward?

An owner is falling behind on assessments. The board wants to add a clause letting it collect rent straight from the tenant to cover the shortfall. What should it do first?

A board wants to stop new rentals entirely, using only a clause in the lease addendum, without touching the declaration. Does that work?

Sources

Rentals & Leasing

Next, see how owner responsibility for tenants works when the addendum isn't enough on its own.

Whether a lease addendum can include an assignment-of-rents clause, and whether an association can require one as a condition of leasing at all, depends on your state and your declaration.