If you own a condominium and decide to move to a new city, you might want to rent out your condo to someone else instead of selling it. This seems logical in some situations; however, you might run into problems with your property management firm when you do this. Some property management firms do not allow this, and here are two reasons they might tell you that this is not allowed.
Ratio of owner-occupied units is important
When a property management firm manages condos, one thing they push for is a high ratio of owner-occupied units. Condos are meant to be owned, not rented. When condo owners start renting out their units, lenders may not issue loans to people who actually want to buy the units. This is why a lender will look at a building's ratio of owner-occupied units. If the ratio is too low, the value of the homes might drop, and people interested in buying units might not be able to get loans.
While having a 100% rate is ideal, lenders may hesitate when a building has a high ratio of renter-occupied units. Because of this, your property management firm may tell you that you cannot rent your unit out. If you no longer want to live there, you will have to find a way to sell it.
Owners have a reputation for caring for their homes more than renters
A second reason your property management firm might tell you that you cannot rent out your unit involves the differences in the ways renters care for properties compared to owners. Owners tend to care more for their homes than renters do. This could be due to the fact that homeowners actually own the houses they live in, while renters are just living there temporarily.
In addition, many homeowners are against having renters in the same building or even close by. While many renters are good at caring for their properties and being good neighbors, there are many that do not have this reputation. To keep the homeowners in your building happy and keep the property values up, your property management firm might not allow you to rent your unit out.
If you have any questions about the rules with condominiums, you can talk to a property management firm like Richmond Property Management. They will be happy to answer your questions and help you come up with a solution for your problems.Share
3 December 2015
After my wife and I realized that we wanted to buy a house, we started saving like crazy. We skipped meals out with friends, wore older clothes for awhile, and put off family vacations. However, when we finally had enough money saved, we felt ready to buy the house of our dreams. However, finding that perfect paradise was a little more difficult than we anticipated. To help us to find the right place, we worked with a great real estate agent. This blog is about working with a broker to find a place you and your family will love forever.