Receivership for Community Associations
Collecting Rents Through Receivership for Units Under Foreclosure:
Bakalar & Associates aggressively pursues the appointment of a receiver to collect rents from tenants of delinquent landlords who are in foreclosure. This cost-effective “blanket” approach allows a court-appointed receiver to collect rents that would otherwise be lining the pockets of delinquent owners.
Like many condominium and homeowners associations across South Florida, our clients are experiencing severe budget shortfalls due in part to greedy investor-owners who are collecting rent on their units and failing to pay the required maintenance fees. Essentially, the investor-owners are making money, while the homeowners are shouldering the burden created by the delinquent investor-owners. As a result of the delinquencies, the associations are not able to maintain the common property or pay the bills.
Pursuant to Florida law, both condominiums and homeowners associations are entitled to the appointment of a receiver to collect rents from tenants of delinquent landlords. On behalf of our clients, Bakalar & Associates is fighting back with the help of court appointed receivers and breathing new life into the operating accounts of our clients by collecting money on a monthly basis that normally went uncollected. In the midst of the foreclosure crisis, the appointment of a “blanket” receivership is essential for associations experiencing high percentages of delinquencies and insurmountable deficits. Please contact our office for more information.
Collecting Rents Based Upon Newly Adopted Statutes:
In Addition to the above noted “Blanket Receiverships,” governing Florida Statutes were amended and on July 1, 2010, certain additional provisions took effect allowing for the Association to act as the Receiver of Rent (F.S 720.2085(8)(a) & (8)(c) for properties which are non-owner occupied and gives the Association the power of the landlord (s. 83.56 and 83.59-625). The new statute allows for the Association to collect rent with the powers of the landlord but not with the additional obligations of the landlord (such as maintenance and repairs). The Firm assists its clients in sending “rent demands” to the tenants of properties in which the property owner is delinquent in the payment of their ongoing assessments (and who may very well be collecting rent from the tenant while at the same time not paying the Association). Contact your Coral Springs association law attorney today!