December 1, 2011
Why is it so complicated when I consider rental restrictions on the condo I wish to buy?
Let’s assume you want to rent it out right away, or want to “know” you can later:
-If a condo association allows rentals today and capacity remains unfilled, you may be encouraged, but…
-Others may also be encouraged by existing capacity/rules, and may buy in the building specifically to rent, or may hold and rent instead of selling when they move on. And…
-The rules may later change. Each HOA has its own rules, but it seems that if somewhere between 51%-80% of your neighbors agree, such a rule can be changed. Why would do they this?
-Because “too many” rental homes in a building can cause difficulty in refinancing and new financing (normally needed in order to sell), most buildings without rental restrictions are talking about putting them in place.