The HOA board explains The rental registration Fee increases

8/5/2021 50 Comments

The HOA board explains The rental registration Fee increases

The Rental assessment fees starting October 1st,2020 was $100. On October 1, 2021 it will rise to $500.

Below is the HOA Board's explanation along with questions to the homeowners:

The HOA Board states "This is approximately $42/month/rental unit to help in providing the peace and enjoyment all homeowners expect in DPPS."

Has the Compliance Officer position increased the "Peace and enjoyment" at Desert Princess in the past year?
The HOA Board states "These homeowners are operating a business within DPPS, and non-rental homeowners should not have to cover these increased expenses".

How many rental homeowners are "businesses"? Do you rent your home to cover HOA and other expenses Have you bought your property as part of your retirement? Is your rental generating a large profit?
In reference to the Rental Registration Fee, the HOA Board states "The principle here is that the rental units should stand the cost of providing the services within DPPS". The budgeted cost is now $127,500. No actual cost breakdowns for the first year has been provided for administrating and enforcing the rental regulations.

Do you believe that these costs are excessive?

The Blog would like to get the homeowners impressions of the explanation for the rental assessment going from $100 to $500.

50 Comments

Whitney

8/5/2021 07:59:25 pm

The HOA should provide a detailed accounting of how all funds are used. 500 per year does not seem excessive if the dollars are used to increase security and protect all occupants, renters and owners alike. Accountability is key

Mary Maloney

8/13/2021 08:07:13 am

Whitney, I agree. But know when we had an incident at our home, we were told very clearly by the Head of the Department that this is merely patrol and not security services that are provided at our resort, even though their vehicles say security. They didn't even take an incident report or come into our home to look at anything. We need increased lighting in our community, additional cameras and security in "soft spots" throughout not $5m more in landscaping.

Jane Woods

8/17/2021 09:16:24 pm

I completely agree that steps need to be taken to tighten up on our security. I am hoping our new head of patrol will be able too address the many issues we have here. I believe it would be beneficial to have a dialog with her where we can ask questions and get feedback in return.

Ryan West

8/5/2021 08:25:24 pm

We as vacation rental owners should be thankful that we are allowed to provided short term rentals within the gates. We are glad to pay for this increases because we think the added over site will help us secure a future in being able to rent short term in the future. Because we are only 25% of the ownership that rents we need to consider those living full time at DP. The HOA might just become reliant on this extra income making it harder to do away with STVR in the future. Be well.

Jeanette Morocco

8/5/2021 08:27:55 pm

I am totally frustrated and infuriated by all of the upcoming increases !! I cannot believe these changes were allowed to go thru ESPECIALLY when (at least 10 people that I spoke to personally) had NO IDEA IF THESE PENDING INCREASES. What is the HOA doing to warrant any such increases that were recently passes ? I know that I have called for services that are never done for me !
These changes will seriously effect all of us on fixed incomes - that are just getting by .
I want to know how to fight these supposed "approved" increases ???

Please help - I am not the only one who wants these increases to not go thru

Bert Brecht

8/5/2021 08:39:44 pm

Renting out your home is protected in the bylaws of Desert Princess and should be protected. All 1000+ homes in our community are worth significantly more because all homeowners have the freedom to rent their home. The $500 fee to owners who rent seems punitive. Good data conclusively showing that a significantly disproportionate percentage of financially costly problems are being caused by renters need to be present before talk of a $500 fee to landlords sould even be proposed.

Mary Simmons-Maloney

8/16/2021 08:16:34 am

This is what Jerry Storage responded with to inquiries for the actual data:

The Board of Directors will be discussing the issue of rentals and related information at its August 27 board meeting. Until that time, and until so directed by the Board of Directors, management will not be preparing or releasing any reports relative to historical rental statistics.

Melanie Ratevosian

8/5/2021 08:50:15 pm

Yes I believe it is high and unfair to those who just rent fir a month or two we already pay a lot fir HOA and it’s not even bieng maintained properly there’s always dirt in front of the garages the landscaping isn’t kept up at all we have to always call to have something done even the pool isn’t as clean and maybe you should start properly taking care of all before you start charging more fees to the homeowners my condo is where I and my family stay not a full time renter so I shouldn’t need to pay period ty

Caroline M

8/5/2021 09:16:31 pm

The increase is excessive. Why do we need a third compliance officer? I'd like a breakdown of the duties that the existing officers perform and an accounting of what the duties are of the new position and how they are different from the existing positions. I know that when we were told to paint our door, we were contacted weekly by the senior compliance officer as though she had nothing else to do. It was a door for crying out loud and we had six months to get it painted. If she was truly busy, I don't think she would have been contacting us weekly to check on progress.

John Thomas

8/5/2021 09:49:09 pm

If a DP homeowner has only one unit which is for their primary use but they occasionally rent it to a third party, perhaps the fee should stay at $100 in that scenario? However, if the DP member has one or more rental units perhaps the $500 fee per rental unit is fair as it can easily be argued such rental(s) would represent a business undertaking!

Mary Maloney

8/13/2021 08:04:24 am

Hi John, I would agree with you if the board can show actual data/reports to justify hiring another compliance officer and that we need to buy another vehicle DUE to renters. There is no data supporting their claims. I think we are all willing to pay our fair share just show the data, which this board cannot do even thought every newsletter from our HOA begins with "we have received numerous complaints about renters" then where is the log, show us the reports. In my opinion it is a "created problem" with no data to support their desire to raise the fee. Where will the oversight be as to how they spend the approximate $150,000 they will raise?

Our HOA needs to run like a business not a 501 C 3 nonprofit organization. The resort and the country club should be offsetting our HOA costs, not the other way around.

Art

8/5/2021 10:21:35 pm

What additional services occur because of rentals and/or what increase in rentals leading to additional services are suggesting that there is a need for over and above the HOA fees that are paid monthly, regardless of rental or owner occupied - or empty- for the very same services the HOA is already chartered to provide?

Mary Maloney

8/13/2021 08:08:35 am

Art, I have asked Jerry Storage on multiple occasions for the reports and data that the HOA board used in determining this increase and none have been provided. I don't think their is any data supporting this "created problem".

Jeffrey Riegel

8/5/2021 10:23:07 pm

I find the i tease in the rental fee from $100 to $500 excessive and unjustified. I urge the board to reconsider and at the very least distinguish between relatively stable long-term rentals and the more problematic shorter rentals.

Rob

8/6/2021 06:12:35 am

Recall the Board! Fire the General Manager for not doing his job! This is outrageous.

Michelle Dupar

8/6/2021 06:17:56 am

This current increase in the HOA dues is the 6th one in 4 years. It was $608 from 1990-2017. If things were new then and little needed to be maintained, where has all that extra money gone? We should have a nice reserve. I bought in 2017 and the dues have gone up 5 times in those 4 years. And for what? Increased security? I was broken into the first month after I purchased! Better landscaping? There are flowers planted along my front walkway that die within a month of planting-just a waste of money. And the weeds that grow in my garden that borders the golf course are never pulled by the landscape maintenance. I pull them myself! The HOA board’s attitude of “we are not concerned with curtailing costs just paying the expenses” is very reckless.

William Littaer link

8/6/2021 06:21:31 am

The $500 fee is grossly unfair to those of us who only rent their homes for a few months when they can't use it themselves. The fee should be based on the number of months the unit is rented. There is a big difference between having a unit available for rent year round and only renting it for a month or two when we snow birds are back in our permanent residences.

Ken Muraco

8/6/2021 07:09:09 am

These rental fees are ridiculous. Paying the $100 annual fee was bad enough but no fee should ever be allowed to increase 400% unless proof of need is justified. Long term rentals should be charged ONCE and seasonal a larger fee IF necessary with the larger population. STR’s maybe monthly if rented but AGAIN ONLY IF there is a justifiable reason for the need to monitor. Let those few “problem” rentals pay fines if they’re not in compliance. Why do we ALL have to be punished when most of us vet our renters appropriately? But I repeat, Long Term Renters are NOT the problem! Long Term Renters care about their surroundings and appreciate the beauty of their home.

Gilbert Caldwell

8/6/2021 07:28:08 am

Below is a question regarding the compliance officer and an answer from the board.

Has the Compliance Officer position increased the "Peace and enjoyment" at Desert Princess in the past year?

The HOA Board states "These homeowners are operating a business within DPPS, and non-rental homeowners should not have to cover these increased expenses".

If the Board feels that non-rental homeowners should not have to cover increased expenses, than why does the board feel that those of us who do not use the golf course have to incur those expenses? The majority of owners at the DPPS do not use the golf course.

Mike Dunlap

8/6/2021 07:37:23 am

We have rented a condo full time to a minister for three years. He is not wealthy. We have charged $1400 per month rent. After property taxes, insurance, HOA fees, Indian land lease and the rental unit fee paid to the Cathedral City PD we net something over $100 monthly … before repairs and maintenance. Our $100 profit is also before the $400 fee increase.

Costs go up. We understand. But the recent move to assess a $100 annual fee on privately owned golf carts that was repealed after protests by golfers is upsetting when the fee for our quiet tenant’s occupancy is five times that amount.

TMSR

8/6/2021 07:42:00 am

In my opinion our security service is understaffed, undertrained, overwhelmed and not accountable. It’s gone from bad to worse. I don’t think that raising the rental fees with a exorbitant feet will solve the problem at all. Once again our rude, unprofessional and unaccountable board has covered up a probably and thinks it will just go away by throwing money at it. Unfortunately our board has become part of the problem rather then part of the solution. Example: what brainchild came up with the increased costed of $127500 expense and how did they derive at this ? So on and so on …..

Mary Maloney

8/6/2021 08:12:01 am

As a rental owner I am all about paying my fair share of expenses, HOWEVER, the board has not provided any data, study or statistics that STVR guests are causing increased expenses above what we already pay to be compliant. We are fully compliant with the city and their enforcement. What does current compliance at our HOA do that another officer is needed, to enforce what? They have provided zero data on number of violations, enforcement or fines.

Patrol has provided and doesn't track whether complaints are owners or renters, so how is another patrol officer and another vehicle justified when last month's report noted 3 noise complaints and if you read the logs at the city, there are 1-2 complaints inside our community per month and it seems someone continually complains about a particular address. If the city reports the address, reported violation and result of the STVR Officer responding, why isn't our HOA doing the same?

The bottomline is the board has taken it upon themselves to create the perception that STVR is a problem within our community as a means to raise an additional $150,000 without any justification as far as data, reports, study or statistics. Yet they commissioned a study to determine that we needed to raise the transponder issuance fee from $25 to $50. How much did that study cost us?

We love coming and staying at our condo and utilizing the additional income to subsidize the ever increasing costs and fees. We are investing in our properties and increasing property value while also building a retirement portfolio. The clients I have (total of 10 condos/villas now) that have purchased in our community have also updated and improved their properties to the betterment of our community.

Let us not forget we are a resort community, not a private 55+ community. We need outside revenue to run this country club otherwise dues are going to continually increase to operate the golf course as a private club for a few. Communities that are private have $1100-$1500 monthly dues.

Since the board feels only rental owners should burden the cost of rental expense, then should the actual golfers burden the cost of running the golf course? This divide being created in our community by this BOD will have a long term effect on the success or demise of our community. 5 condos/villas have come up for sale this week alone at the height of the off season in the summer since the board meeting. Coincidence? Inventory has been less than 3 at any given time over the past few months as I watch it daily.

Lighting, security, our aging infastructure should all be priority number 1 for this board not rental owners. We need to get our priorities straight or we could be on a slippery slope to becoming the Desperate Princess.

Jane

8/6/2021 09:35:51 am

Lighting, security, our aging infastructure should all be priority number 1 for this board not rental owners. We need to get our priorities straight or we could be on a slippery slope to becoming the Desperate Princess.
Well said! We have been saying this continuously and it needs too be repeated.
Lastly, why can we not have an “in person” and zoom option for the Owner to Owner chats? That’s ridiculous. I hope I am not the only one that feels Zoom in necessary if you are unable to attend. I believe it’s more productive to have in person meetings.

Pamela Meadows

8/6/2021 12:25:56 pm

Well said Mary!!! I completely agree!!!

Ellen Balcomb

8/20/2021 10:06:49 am

What can we do to reduce the cost of a private security service? They could use golf carts to get around the community, they can’t do anything anyway. So things like increased lighting and cameras, as has already been suggested, might be a security solution for us. Has anyone seen a report, monthly or annual, on the kinds of calls security receives from residents or the number of actual crimes committed? It seems to me a budget item that increases 400% is something that should have been planned for way ahead of time and completed in incremental changes, not just thrown at the community all of a sudden. The idea of always spending money instead of planning for the expense is outrageous. More outrageous is we the residents don’t have a clue what is happening until something like this mess shows up. There has to be better communication between all the factions at DP!

Jennie A Osment

8/6/2021 08:20:15 am

What does it matter if I'm staying in my house, or if a renter is staying in my house? Isn't that what are HOA fees cover? Why would it be any different whether it's me staying there or a 'renter' staying there? It's the same difference to me. I think it's a little ridiculous, especially because they are probably making more money with the renters utilizing the clubhouse and the green fees. Not to mention the fees we have to pay to Cathedral City just to rent out our place.

Anon link

8/6/2021 06:00:12 pm

What does it matter? It matters a lot. When you choose to rent out your property here it becomes a business. That's why Cathedral City & HOA require you to have a permit/business license. Case closed.

Ken Muraco

8/6/2021 10:06:35 pm

Why does “Anon “ feel afraid to state their name ?
Another board member maybe? Maybe a full time golfer ?

Mary Maloney

8/13/2021 08:15:45 am

Anon or whomever you are, interesting that you won't state your name. The fact Jennie is making is on infastructure not whether it is a business or not. The HOA and the City is making more revenue by outside gusts being at our RESORT. Yes owners must get permits and a business license, but how is that effecting costs at the Desert Princess HOA? We have had rentals at our resort for years and already have a compliance officer. It was built as a resort and the Princess Cruise Line even rented the condos on a fractional profit share basis. We are meant to run as a resort with outside guests.

patrick reynolds

8/6/2021 10:38:40 am

Without the actual cost breakdown provided, how did the $500 amount get determined? How is it even legal? To me this is just an arbitrary number to discourage STR or any renters. We have been renting here for over 30 years before we bought in here. Really upset and discouraged by this new attitude that renters are causing problems and increased security costs. Your property values all go up because of people like us who rented here first and then picked this community to buy and move into. Now we are treated like pariahs and being gouged first by the City and our own HOA. The fines being imposed are insane and usurious, yet the false complaint fines are minimal. That is totally not fair and again slanted to encourage complaints real or imagined, with the goal to get rid of all rentals completely. Our guests have never caused a single problem, nor have we ever had a single complaint lodged against us, from STR or long term renters. This cost is punitive, exorbitant, and unfounded on any real costs to the HOA.

Pamela Meadows

8/6/2021 12:28:01 pm

Patrick, I completely agree!!! Well stated!

D C

8/6/2021 11:51:11 am

IRS defines rental income as either passive or active. In other words rental properties can be a business or an investment. IRS, further, defines the criteria on what makes a rental property a business or an investment. The HOA, by directive, have declared that all Desert Princess property owners that rent their property "are running a business", and hence should pay an onerous assessment fee. In effect, the HOA are treating some property owners differently than others. Unless the HOA reverses this discriminatory assessment, this will probably end up in court. Then we will all pay for the legal costs

Pamela Meadows

8/6/2021 12:27:11 pm

Well said!

Anon link

8/6/2021 06:08:17 pm

DC, your issue will not even see the inside of a courtroom. READ YOUR HOA GOVERNING DOCUMENTS. THE IRS COLLECTS YOUR TAXES. IT DOESN'T OVERSEE HOA REGULATIONS.

Pamela Meadows

8/6/2021 07:54:13 pm

If you can't put your name, you do not belong on this forum "Anon"

Michelle Simson

8/7/2021 05:35:07 am

I agree Pam. I tend to believe in an open, informational forum, the "anons" are Board trolls. Especially when the message is written in caps. How sad is that.

8/7/2021 01:11:25 pm

Anon, This is California USA, still a free society. Conflicting opinions still get resolved in the court of law. The HOA must operate according to the laws in effect. The HOA's board may enact rules which are legally binding upon residents as long as they do not conflict with the CC&Rs or state or federal law. By enacting regulations creating separate groups of homeowners (i.e. landlords vs residents), in fact the HOA is violating the state and federal law. Among the owners that will be affected by this new regulation, there will be at least a few that will have the $75 and the time to drive the courthouse and file complaints in small claims against having to pay a discriminatory assessment. Regardless if they use it or not, all owners are paying for the golf course, club house/restaurant etc. Why is a rental property treated differently? Worse yet, the HOA had prior knowledge of the fact that their actions are discriminatory, hence they (i.e. all of us) are liable for possible punitive damages. At lease this is my opinion.

Timothy Gaffney

8/6/2021 10:20:01 pm

I've been doing vacation rentals here for @ 20 years.
I was probably one of the very fee who even filled out the forms and
sent in the City's bed taxes each month @ 10-12%.

Now it seems like everyone wants their "cut" of the action.
Like this is another casino operation.

I did a little simple math a few months ago.
Very simple because that is the only kind I can do.

I would have been money ahead if I would have taken
the money I invested in Desert Princess, and simple put it into an
Index Fund and reinvested the money with compounded interest.

Rentals are a lot of work and require constant upkeep.
They are not a license to mint money.
Why do you think I'm still working?

The reason we have ISSUES in Cathedral City is because the city was too lazy, foolish, or shortsighted
in allocating licenses and guidelines in the first place. To anyone that paid the fee.

We do NOT rent to anyone under 25. Never knowingly have.
For 20 years we have had a policy of 4 people in a 2 bedroom and 6 maximum in a 3 bedroom.
No smoking. No pets.
We don't just take the money and run.

Desert Princess doesn't have a rental PROBLEM.
In fact, it's probably our main unique sales point when you go to sell your house.

They have a problem with running an organization.

They have a problem with how they price and market their business.
They have for 20 years.

And they don't know how to, or simply don't care to
be in the Country Club business.

Raising the rentals to $500?
Sure that's too high.

The only reason they are doing it is they've already got all they can
by increasing HOA Dues again this year.

They have to get money from somewhere to paper over another
$1.5 plus million dollar LOSS on the Country Club side of the money transfer.

Vote. Organize.
Or write out the check.

Bitching is not really much of an option.

8/7/2021 01:25:11 pm

Tim, I completely agree with you: complaining about it will not do any good. Also, it seems that the HOA is a monolithic group, that is not interested in different point of views. This was best exemplified by their refusal to nominate Charlotte (as the highest runner-up) to the board, when a seat became available. Additionally, I thank you for being a responsible. considerate owner, and for not renting to problem tenants. In fact, I would like to add that the problem with the short term rentals, seem to be associated with Property Management companies such as VACASA.

karen sugg

9/2/2021 05:01:45 pm

and if proper procedures were followed we could actually track what the problem is and how to fix it. But instead we are just going to throw more money at it, we being STVR owners. My biggest pet peeve is after I vet my renters (no children, no pets, nothing shorter than 2 weeks, no parties allowed) security will allow my guests to add overnight guests. So what was contracted for 2 guests now becomes 6 guests! I choose my guests wisely, I do not want 6 guests in my house. If they would allow guests only on contract maybe they would have less issues. I know it would help me immensely with less wear and tear on my home and utility costs!

Valorie Farber

8/10/2021 09:27:40 am

Timothy G:
Absolutely 100%!

Mary Maloney

8/13/2021 08:19:52 am

Timothy, agree 1000% and as a STVR condo owner, which there are none on this existing board, I plan to run at the next election. Taking action is the key. I appreciate all of your comments.

Pam Meadows

8/13/2021 10:42:27 am

I'll vote for you Mary!!!!!

Vivian Wilson

8/7/2021 08:48:19 am

I have to agree with Tim in that complaining won't help this situation. It is clear from the last meeting that the current Board ( with the exception of Bill) is not interested in hearing our complaints or issues. We have an election early 2022 for three positions. With everyone's help and Bill's endorsement for three new candidates we just may be in a position to have our voices heard. For one, I would like to see Charlotte run again and this time her votes will count.

Mary Maloney

8/13/2021 08:27:43 am

Valorie Farber and myself will be running as well. Both of us run multi million dollar businesses and are STVR owners and love DP. We have invested in this community for a reason and love it. It can be amazing if run like a business. This community was built as a RESORT, not a private golf club. Our amenities should be bringing in money to offset our HOA dues not the other way around.

Michael Colikas

8/12/2021 03:02:57 pm

As a new condo owner, I would like to know if a homeowner only meeting is ever scheduled.
I attended the budget meeting for the first time and was very unhappy with the way the board responded to the owners.
I think it’s time we get together to discuss how to remove the President who I found to be unprofessional, rude, condescending and pompous.

Stephen Kilroy

8/12/2021 05:52:32 pm

In the 21-22 year, I'll be renting my villa for 3 months. (long term). That makes this fee cost $167/month, not $42. I have a permanent renter in my condo. He's
on a fixed income, so I've kept the rent low. As a result I lose money every year. Some business!
PS: Yes, I lose on the condo before depreciation

Young

8/14/2021 05:09:29 pm

We got hit with a rental violation of $5k earlier this year, which was reduced to $1K. Pretty ridiculous we feel as first time offenders with a 27 day rental. We were not in compliance with a business license or Rental Info Form on file with the HOA. We feel that a warning should have come prior to an exohorbant fine. We have heard chatter that the BOD/HOA was going to reverse course and rescind the fines all together. Does anyone have any knowledge of this?

Mary Simmons-Maloney

8/16/2021 08:22:52 am

The fines are exorbitant and ridiculous for first time violations. The BOD voted in all of the recommendations of the STVR committee, led by Terri Swartz. This HOA is trying to punish the actual people who are bringing revenue to this resort. And how about the fact that the fine for filing a false complaint is only $100......

D C

8/16/2021 03:08:48 pm

In an News/Notice published today August 16, 2021 on the Desert Princess Portal Terri Swartz states:

"Rentals at Desert Princess Palm Springs have existed for some time. While that has not changed
over time, what has is the ease with which homeowners may rent their condos or villas to
strangers. Gone are the days when renters were typically friends, family or co-workers
personally known by homeowners. Thanks to advances in technology and the advent of new
services such as VRBO and Air B&B, renting private homes for vacations and extended stays
has become easy for all (homeowner and renter). To provide a context, approximately 25% of
the homes at Desert Princess are rented out at least some of the time."

This statement implies that the Desert Princess HOA only has a problem with owners/landlords which are renting their property to "strangers". THIS IS VERY DISTURBING particularly when this point of view comes from the "Chair, HOA Board Governance Committee"

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The HOA board explains The rental registration Fee increases

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