The following question comes from a website visitor from Georgia. We would like to thank our Partner, FirstService Residential, for providing the answer.
Q: Our HOA is concerned about too many absentee landlords (investors rather than residents) buying into our community. Is there a paragraph we can add to our governing documents that will discourage outside investors?
A: In Georgia, any change in ownership protocol or limitation of ownership should be specified in the governing documents. The intent should be not to discourage, but to provide clear guidance and set the expectations for any future owners within the community, so that the future owners or investors in this case, know exactly what those limitations are. One way to do this would be with an amendment to the governing documents that clearly limits the number of units that can be purchased by one party.
The amendment should be completed under the guidance of the association’s attorney. Also, keep in mind that the amendment usually affects new owners and would limit current owners from purchasing more units, but would not affect the number of units already owned, until those units are sold.
The information provided is not intended to and must not be construed as or relied upon as, providing professional, or legal advice of any kind on any issue. This information provided may change depending on the situation. For specific guidance about your community and market, please consult with an attorney or work with a certified community manager.
Please visit www.fsresidential.com to find your local FirstService Residential office.