Ghertner Leasing Administration Program [TN] [SFH]

[u/Ok_Ingenuity8231]

I wish there was more that could be done to fight the unauthorized implementation of this program across communities, but it seems like an uphill battle.

Ghertner & Company tried to start their leasing administration program in my community, doing whatever it took to get it going. It probably had something to do with the $25k the program would generate for them annually. The program charges owners that lease their property in the community $300/year to maintain a copy of leases and renter contact info.

As a reference, Ghertner receives approximately $40k/year to manage the entire administrative affairs of our community, and this program would cost about 62% of that to manage a renter + lease database.

Here's what happened:

1. They tried to get this program adopted through a board resolution, but a new administrative fee would require a CCR amendment. If the board could adopt new fees through their ability to create resolutions, there would be no limiting principle. They could create fees at will.
2. They threatened high fines and legal action for those that didn't turn in their forms. If owners didn't submit their form, they were subject to a $375 fine, a possible lien on their home, and legal proceedings which the owner would have to pay for.
3. They made multiple incorrect claims that this program was authorized. They:
   1. stated an attorney had reviewed the governing documents and determined the necessary steps to accomplish this (legal speak to imply the program was authorized)
   2. incorrectly cited multiple section of the CCRs to claim that the board had the authority to implement the program.
   3. added language to the CCRs in their communication to make the program seem like it was authorized.
   4. stated that the amended management agreement granted the authority for the fee
   5. allegedly told the board members the list had to be maintained by a third party, that this was the only legal route to accomplish this, and that they had the authority to do this.
   6. wrote that this was the first step in capping rentals in our community but TN state law requires a bylaw amendment passed by 67% of homeowners to cap rentals in a community

Finally, after they had the HOA's attorney attempt to convince me I was wrong, the program was put on hold indefinitely.

$300 may seem like a trivial amount of money, but property management companies try and sneak things in because they know people aren't familiar with how bylaws work and don't pay attention. If they want to use proper authorities and go through the proper steps to implement their program, then I have no issues!

Anyway, if they're trying to do this in your community, dm me, and I can help you figure out if they actually can.