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Old 02-27-2018, 09:31 PM
 
71 posts, read 40,283 times
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I know that many condominiums try to put rental restrictions in place so that owners are unable to rent out their units. I think in situations where a single person is living in a studio condominium it becomes obvious very quickly if a renter is the only one occupying the unit.

However, I think the situation gets more blurred if the owner has a roommate, and even more blurry in a multi-bedroom scenario where the owner has roommates. Couldn't an owner just buy a condominium, *occupy* one of the bedrooms, and rent the other bedroom out to someone else?

An owner can't always move in right away. Sometimes the buying market does not coincide with lease cycles. For example, many leases are up in the summer time (August) due to the academic season influence on the housing/rental market, yet winter (December/January) is typically the best time to buy from a pricing perspective.
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Old 02-27-2018, 10:42 PM
 
Location: Brentwood, Tennessee
39,060 posts, read 37,695,377 times
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Quote:
Originally Posted by pannierpacker View Post
I know that many condominiums try to put rental restrictions in place so that owners are unable to rent out their units. I think in situations where a single person is living in a studio condominium it becomes obvious very quickly if a renter is the only one occupying the unit.

However, I think the situation gets more blurred if the owner has a roommate, and even more blurry in a multi-bedroom scenario where the owner has roommates. Couldn't an owner just buy a condominium, *occupy* one of the bedrooms, and rent the other bedroom out to someone else?

An owner can't always move in right away. Sometimes the buying market does not coincide with lease cycles. For example, many leases are up in the summer time (August) due to the academic season influence on the housing/rental market, yet winter (December/January) is typically the best time to buy from a pricing perspective.
Of course an owner **could** do that. S/he would be in violation of the condo covenants and could face penalties.

Why would lease cycles affect a potential buyer when renting is illegal where they are looking?
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Old 02-28-2018, 11:26 AM
 
71 posts, read 40,283 times
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Quote:
Originally Posted by BirdieBelle View Post
Of course an owner **could** do that. S/he would be in violation of the condo covenants and could face penalties.

Why would lease cycles affect a potential buyer when renting is illegal where they are looking?
How does an association determine if it's in violation of a covenant? How much time does an owner have to spend there for it to be considered an owner-occupied rental, or how much space within the unit must they take up for it to be considered an owner-occupied rental? What difference does owner-occupied rental make vs. an entire unit is a rental? (I'm guessing that at most associations this is a pretty clear difference).

I guess my point is that renting rules have a high negative impact on potential buyers who are signed under a year long lease at their pre-existing residence (applies to first-time buyers, primarily).
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Old 02-28-2018, 01:38 PM
Status: "October is the eighth month" (set 20 days ago)
 
Location: Just south of Denver since 1989
10,678 posts, read 28,495,910 times
Reputation: 6842
One of the reasons is to preserve FHA financing.
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Old 02-28-2018, 02:10 PM
 
Location: Omaha, Nebraska
6,306 posts, read 3,479,933 times
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Quote:
Originally Posted by pannierpacker View Post
How does an association determine if it's in violation of a covenant? How much time does an owner have to spend there for it to be considered an owner-occupied rental, or how much space within the unit must they take up for it to be considered an owner-occupied rental?
Those details are spelled out in the CC&rs for the condo association.

Quote:
Originally Posted by 2bindenver View Post
One of the reasons is to preserve FHA financing.
Yes. Another is to prevent the condo for being used as an AirB&B or vacation rental.
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Old 03-01-2018, 04:31 AM
 
Location: Boise
570 posts, read 527,223 times
Reputation: 1246
I would never buy in an association with those restrictions. Its theft in my opinion.
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Old 03-01-2018, 09:49 AM
 
Location: Brentwood, Tennessee
39,060 posts, read 37,695,377 times
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Quote:
Originally Posted by mortgageboss View Post
I would never buy in an association with those restrictions. Its theft in my opinion.
I would ONLY buy in an association with those restrictions.

I don't want to live in a hotel. I'd rather live where I know my neighbors and they aren't cycling in and out every week or every few months, doing who knows what.

Quote:
Originally Posted by pannierpacker View Post
How does an association determine if it's in violation of a covenant? How much time does an owner have to spend there for it to be considered an owner-occupied rental, or how much space within the unit must they take up for it to be considered an owner-occupied rental? What difference does owner-occupied rental make vs. an entire unit is a rental? (I'm guessing that at most associations this is a pretty clear difference).
Yes, the covenants are usually very specific with those details.

Quote:
Originally Posted by pannierpacker View Post
I guess my point is that renting rules have a high negative impact on potential buyers who are signed under a year long lease at their pre-existing residence (applies to first-time buyers, primarily).
If you can't live there without renting, it's not the place for you. Look elsewhere.
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Old 03-01-2018, 11:42 AM
 
3,035 posts, read 1,211,010 times
Reputation: 6008
Quote:
Originally Posted by mortgageboss View Post
I would never buy in an association with those restrictions. Its theft in my opinion.
I was quite fine with it. My next door neighbor was trying to rent out her place on vrbo while she was trying to sell it. It was really disconcerting to see new people going in and out of the place every few days. However, it quickly stopped once I notified management that it was going on. I just didnít feel comfortable not having a clue who was going to be in and out of that unit.
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Old 03-01-2018, 11:55 AM
 
Location: Denver CO
18,990 posts, read 10,047,592 times
Reputation: 27766
Quote:
Originally Posted by pannierpacker View Post
How does an association determine if it's in violation of a covenant? How much time does an owner have to spend there for it to be considered an owner-occupied rental, or how much space within the unit must they take up for it to be considered an owner-occupied rental? What difference does owner-occupied rental make vs. an entire unit is a rental? (I'm guessing that at most associations this is a pretty clear difference).

I guess my point is that renting rules have a high negative impact on potential buyers who are signed under a year long lease at their pre-existing residence (applies to first-time buyers, primarily).
Don't buy when you are at the beginning of a year long lease. Or don't sign a year long lease when you plan to buy something. I was in a rental apartment for a few years when I decided I was ready to think about buying. Spoke to the management company and they were willing to give me a one month termination clause when I renewed the lease, since I had been a good tenant. (We did it that way because it kept my rent set for a year, as opposed to a month to month).

I ended up giving two months so I could move out at my convenience and it worked out fine for both of us. I timed my purchase to fit my circumstances instead of expecting a condo association or a landlord to break their rules for me.
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Old 03-01-2018, 07:18 PM
 
Location: New York
1,486 posts, read 1,397,261 times
Reputation: 1821
Quote:
Originally Posted by mortgageboss View Post
I would never buy in an association with those restrictions. Its theft in my opinion.

You say that now, but Iím sure your tune would change if a registered sex offender or a murderer on probation moved in next door.
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