What Are the Rules for Renting Out a Condo?
Because of the real estate market in some cities, people who want to sell their units because they have to relocate or have a growing family choose to rent their condo instead of selling it at a low cost. But there are condo association rules around renting.
Most condo associations put a cap on how many units in the building can be rented instead of owner-occupied. Some cap it at 10%, while others say that everything’s fine as long as 51% of the units are owner-occupied. Before you decide to rent your apartment, find out if there’s a cap imposed on your building and how close the property is to reaching the cap. Some buildings end up with waiting lists of owners who want to rent their condos.
For condo associations, this can be a sticky situation. Too many rentals can depress property values because renters, in general, don’t care for a condo the way the owner would. Associations that choose to increase or remove their rental cap may also impose stricter rules about noise or maintenance.
On the other hand, a low cap of 10% can force owners who must move to sell their units for a low price, which depresses the worth of all the other units in the building.
Before making decisions about rentals in your building, carefully assess the real estate market in your city and be sure the decision you make protects not only the owners who want to leave but the ones who are left behind.
Pilera is a best-of-class, easy-to-use, comprehensive online property management solution for apartments, condos, and associations. Pilera provides the easiest, most comprehensive data management capability available to property managers, leasing agents, boards of directors, and back-office personnel. Quickly and easily access whatever you need, whenever you need it, from wherever you need to be with office or mobile phone connectivity. You are never out of touch. Act on the document/information accessed from the office or “on-the-road” with Pilera-supported mobile capability. Contact us today!