AlanC5 (Washington)
Posts: 3
Posts: 3
Posted:
Do most condominiums limit the number of rentals.If so what would be a good percentage limit.
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Started by AlanC5 • 10 replies • 611 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
No two HOA's are alike nor condo's. So it's pretty much up to the individual HOA/COA to deal with. However, there is a PUD/HUD form that does set a limit if you want to be able to offer certain government backed loans. Not sure the specific but it's atleast below 50%.
Whether or not actual rental limitation is legally enforceable is up to your state law. Which varies for each state if it is possible.
Whether or not actual rental limitation is legally enforceable is up to your state law. Which varies for each state if it is possible.
Former HOA President
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Well, you can set a rule, but its almost impossible to enforce legally. Its like saying only 10% black people are allowed or no sex allowed in 10% of the units.
When it goes to court, the HOA will probably loose. Why makes rules you cant enforce?
When it goes to court, the HOA will probably loose. Why makes rules you cant enforce?
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Quote:
Posted By MelissaP1 on 09/26/2019 4:03 AM
No two HOA's are alike nor condo's. So it's pretty much up to the individual HOA/COA to deal with. However, there is a PUD/HUD form that does set a limit if you want to be able to offer certain government backed loans. Not sure the specific but it's atleast below 50%.
No two HOA's are alike nor condo's. So it's pretty much up to the individual HOA/COA to deal with. However, there is a PUD/HUD form that does set a limit if you want to be able to offer certain government backed loans. Not sure the specific but it's atleast below 50%.
I always fill out those forms as "to my knowlege there are zero rentals" why? we dont track rentals. If the bank wants to know how many rentals there are, they can knock on every door and figure it out themselves.
JeffT2 (Iowa)
Posts: 880
Posts: 880
Posted:
Quote:
Posted By SteveM9 on 09/26/2019 5:40 AM
Well, you can set a rule, but its almost impossible to enforce legally. Its like saying only 10% black people are allowed or no sex allowed in 10% of the units.
When it goes to court, the HOA will probably loose. Why makes rules you cant enforce?
Well, you can set a rule, but its almost impossible to enforce legally. Its like saying only 10% black people are allowed or no sex allowed in 10% of the units.
When it goes to court, the HOA will probably loose. Why makes rules you cant enforce?
It can enforced like any other rule. Some associations require all the rental units to be registered with the association, and a copy of the lease given to the association. Courts do enforce rental provisions.
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Quote:
It can enforced like any other rule.
Well, its not like any other rule. It pertains to what you do inside the unit. And that is very different......
JeffT2 (Iowa)
Posts: 880
Posts: 880
Posted:
Quote:
Posted By SteveM9 on 09/26/2019 9:26 AM
It can enforced like any other rule.
It can enforced like any other rule.
Well, its not like any other rule. It pertains to what you do inside the unit. And that is very different......
No it isn't different. Just to be clear, we should be talking about provisions in the condo declaration, not just rules. Condos typically have many provisions that govern the inside of units, such as: no flammable materials, nothing that will increase the association's insurance, no vermin, cleanliness, little or no business activity, no objectionable noise, standards for what can be installed inside units, replacement of equipment inside the unit, etc. This type of provision is reasonable and enforceable due to the closeness and proximity of condo units. Same for rental restrictions.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Alan
Unless rental restrictions are in your Covenants there is no way the BOD can make any rule against, limiting, etc.
There several schools of thought about how to get rental restrictions in the Covenants:
One school of thought is add it as you would any new covenant. Though many may vote against it as they do not want to restrict their right to rent. Some say to counter this, grandfather in existing rentals. Some say grandfather in all current owners.
Some argue that such a change would require 100% of all owners agreeing to the Covenant change. No chance of that happening.
We have one restriction in our Covenants and that is no one may rent their unit in the first year of their ownership. It prevents speculators.
Unless rental restrictions are in your Covenants there is no way the BOD can make any rule against, limiting, etc.
There several schools of thought about how to get rental restrictions in the Covenants:
One school of thought is add it as you would any new covenant. Though many may vote against it as they do not want to restrict their right to rent. Some say to counter this, grandfather in existing rentals. Some say grandfather in all current owners.
Some argue that such a change would require 100% of all owners agreeing to the Covenant change. No chance of that happening.
We have one restriction in our Covenants and that is no one may rent their unit in the first year of their ownership. It prevents speculators.
NicoleO5 (California)
Posts: 61
Posts: 61
Posted:
exactly what John has said. It must be in your CCR's. no rules will support it. Our CCR's were updated a few years back. We added any new owner moving in would have to live in the unit 2 years before being able to rent it.. it has slowed down the people who are investing money in condos big time, but it has improved our complex too.
AlanC5 (Washington)
Posts: 3
Posts: 3
Posted:
Thank you for your input, Alan
AlanC5 (Washington)
Posts: 3
Posts: 3
Posted:
Thank you for your input, Alan
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