Before you include a video doorbell in your next D-Tools proposal, you might want to ask the prospective client if their home is subject to rules from a Home Owners Association (HOA). Why? Because it turns out that HOAs have broad leeway to impose restrictions within their communities, including the prohibition of outdoor video surveillance cameras such as video doorbells. Moreover, the HOA could put in jeopardy your ability to collect recurring monthly revenue (RMR) fees from your client.
There is generally no violation of privacy laws for an integrator to be concerned with when installing an outdoor surveillance camera for a customer. However, a court recently ruled in favor of a North Charlotte, N.C., HOA’s right to prohibit the installation of doorbell cameras. One resident was concerned about her safety and had a doorbell camera installed and refused to remove it when requested by the HOA. She was initially fined $100 then eventually sued by the HOA, according to a blog post from Ken Kirschenbaum of Kirschenbaum & Kirschenbaum, an alarm industry legal expert based in Garden City, N.J.
The court ruled in favor of the HOA, giving the entity a judgement of more than $70,000 in unpaid fines. Moreover, the HOA is seeking additional legal fees of $115,000.
“What’s interesting about this case is not its application to privacy rules, because generally use of outdoor cameras does not violate privacy laws,” says Kirschenbaum. “This case is about power of the HOA to make rules for its residents, and as this homeowner found out, that power is extremely broad and absolute absent violation of others Constitutional civil rights.”
He continues, “As installers you should be mindful that you do have to be careful about HOA and other community rules and regulations other than building codes or statutes. While you can install whatever the customer wants it's probably a good idea to remind the customer that there may be HOA rules to follow; let the customer decide if they will risk the install.”
What about Doorbell Camera Recording Fees?
Kirschenbaum takes the warning one step further by noting that if the integration company is earning RMR for monitoring the cameras and the HOA clamps down and requires removal, the dealer may be challenged by the customer regarding continued payment under the contract.
In other words, integrators might be prepared for the client to refuse to pay the remaining term on the video storage contract if the HOA has required them to remove the surveillance camera. It is an interesting situation that should prompt integrators to make sure their contracts issued via D-Tools have all the necessary legal language in place. Kirschenbaum notes that his contracts, for example, have language related to the requirement of search warrants from law enforcement to obtain video data from equipment installed, monitored and stored by the integration company or its central station.
