CAI-NJ Feb. 2019

RENT RECEIVER... from page 16.

is key when an HOA finds themselves requiring a rent receiver, therefore; it is important to choose wisely and consult your legal team. 2. How does the association get a rent receiver? To appoint a rent receiver, an HOA will typically seek guidance from their legal counsel. If rent receivership is a viable option for that HOA, legal counsel will file a motion of behalf of the association. The association’s attorney will be required to submit evidence showing the need for a rent receiver and all liens holders for the unit. Lastly, legal counsel will also provide evidence via an affidavit or other material document to show that the rent receiver is qualified to operate in such a role. Over time, many HOAs become concerned with whether they are receiving the money they are entitled. The objective of a rent receivership is not for the association to make income, but to stop further loss by paying the common monthly charges and/or where applicable to allow the association to lower the current outstanding balance. With that said, the rent receiver has a right to collect a fee for its service. The receiver must also keep a portion of the rent as contingency for potential damage/ repairs that may arise, pay the asso- ciation’s common monthly fees and/ 3. What is the rent receiver doing with the money?

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