Rather than attempt to sell property in a depressed market, many condominium owners want to be able to rent out their units. Unfortunately, rental caps may prevent owners from being eligible to rent out the property for years due to the number of units in the building that are already being rented out.
It’s a conundrum many condo-unit owners face these days. They might want to leave town for a job opportunity, or they need a home with more space for an expanding family. Sometimes, it’s the unit of a parent who has died, and the heirs would rather rent out the property than sell in a depressed market. Given the red-hot market for apartment rentals, becoming a landlord seems the best option.
But if there’s a rental restriction in place, these homeowners may find themselves out of luck, forced to stay put, keep the unit vacant, sell for a low price or, worse, end up in foreclosure.
These types of rules aren’t new, but over the past few years many boards of both condo associations and those governing single-family-home communities have taken “a very hard and fast look at the rental policies they have in place to see if they work appropriately,” said Paul Grucza, executive vice president of Classic Property Management in Arlington, Texas.
There are usually good intentions behind these rental rules. Many associations are protecting their communities from getting a reputation for having “transient” residents. And some share a belief that owners in residence take better care of their properties than renters.
If you are having issues with your condominium association, the Lawyer Referral Service can refer you to competent attorneys who specifically handle condominium law issues. Call 603-229-0002 or request an online referral.