Knolls Estates Rental Variance Requirements (Approved 2/15/11)

The Knolls Estates PUD CC&R’s prohibit the renting of any property and specify that homes are to be owner occupied. However, financial or medical hardships do occur, and the Board will consider providing a Rental Variance in cases of hardship. Since the CC&Rs prohibit rentals, a waiver for a rental must be approved by the Board of Directors for all rentals.If properties are rented without written permission from the Board of Directors, owners will be fined per the 2010 Fine Schedule.

We have listed below the six requirements that must be met in order to be considered for a rental variance. You will need to request a Rental Variance from the Board of Directors in writing, and must address each of the six points listed below. Basically, the Board wants assurance from you that the rental variance requirements will be met and maintained by you, the property owner, and your renter.

1. Agreement with Property Management Company: A property management company or a real estate agent will need to be hired by you during the term of this rental to manage this rental; the Board will need a copy of your signed agreement with your property management company or agent. The property management company or agent will serve as the Board’s primary contact for all problems and concerns. The Board will not contact you, or your renters or any other contractors or service providers to voice day-to-day concerns or resolve issues. We will use the property management company or agent as our one primary contact for day-to-day concerns. Your signed contract needs to indicate an understanding of this relationship between your property management company/agent and the Knolls Estates Board. Should you make a change in your property management company or agent, you are responsible for informing the Board of this change immediately.

2. Property Listed: Renting is a temporary measure that gives owners extra time to sell a property. Therefore, your home does need to be listed and must be available for showing while you are renting. You are responsible for informing us of the name, address and phone number of the real estate agent who has your listing and for informing us of any changes in the listing agent. A Realtor “For Sale” sign must be posted on your property.

3. Landscape/Yard Maintenance Services: You will need to hire a landscape or yard maintenance company to take care of your yard. You will need to provide the Board of Directors with the name of the company you have hired as well as their contact information. You will also need to provide us with the contract you have signed with your yard/landscape maintenance company. If no contract has been signed, then please provide the Board with a written summary signed by you of your agreement with the maintenance company including the number of visits per month that they will make to your property and the basic tasks that they will complete.

If there is a problem or concern with your landscaping or the maintenance of your yard, the Board will contact your property management company/agent with concerns or complaints. Your property management company/agent will, in turn, need to either contact you or your landscaping/yard maintenance provider to get these problems or concerns resolved. Should you make a change in your landscaping/yard maintenance provider during the term of your rental, you are responsible for providing the Board with updated contract and contact information. If your yard is not properly maintained, Knolls Estates Homeowners Association will, per the CC&Rs, hire professionals to address any problems and will bill the owner for the expense of correcting these problems.

4. Copy of CC&Rs and 2010 Rules: Your property management company or agent needs to be provided with 2 copies of the CC&Rs and the 2010 Rules. They should maintain one copy in their files, and provide the second copy to your renters. You were given a copy of the CC&Rs at closing. Current copies of the CC&R’s, the Rules and Regulations and the Fine Schedule can be obtained at Knollsestates.com website.

5. Water and HOA Dues: All water bills and HOA Dues will be sent to you, the property owner. The Board will not be responsible for collecting money from your renters. If any fines or late fees are charged to an owner’s account because of the actions or inactions of the renters, the owner will also be responsible for paying these fines or fees. Your account must be kept current in order to maintain your rental variance.

6. Financial or Medical Hardship: Please explain to the Board the Financial or Medical hardship that requires your property to be rented. We do not require proof of your hardship, but will accept you at your word. Should your circumstances change and alleviate your need to rent your property, you are expected to inform the Board promptly.

The Board has the right to revoke its rental permission at any time for any reason. We will work with you, your renters and the property management company or agent to make this relationship successful. However, renting should be considered a revocable privilege and not a right.

The Board also will grant a rental variance for a specific period of time. If you need to continue a rental variance after the time is expired, it is your responsibility to contact the Board and request an extension for your rental variance.

Please contact us if you have any questions. Please address items 1 through 6 in your written request to the Board for a Rental Variance. Handwritten material or documents sent via email are fine, as long as they are legible. Please send your Rental Request to: Knolls Estates, P.O. Box 1498, Sutherlin, OR. 97479.

Sincerely,

Monica M. Duran

Knolls Estates Administrator