No Renting of Unpermitted Rooms
Sometimes boards consider renting out a recreation room that is seldom used in order to generate extra income. Unless the room has a certificate of occupancy, the room should not be rented and the management company should not participate in renting it. Should an unpermitted room be rented and the occupant becomes injured or dies due to a fire, gas leak, carbon monoxide exposure, earthquake or otherwise, the association will not be protected by insurance and the board members are likely to be held personally liable. In addition, the insurance policy for the association is likely to be cancelled and the renter will have a legal justification for demanding the return of all rent previous paid.
American HOA Management