Whether it is concerns over qualifying for FHA backed loans in a condominium community or concerns over upkeep of homes, more and more communities are considering bans or restrictions on rentals. If your community is considering limiting the number of rentals, there are a few things to consider:
- will the rental restriction really address the issue or is it behavioral?
- rental restrictions must be contained within the declaration to be enforceable — a rule won’t do!
- consider local ordinances as additional enforcement options
- make sure restrictions don’t violate FHA guidelines
- will you allow exceptions for hardships?
- how will you secure the approval of owners who currently rent their units?
Rental restrictions can be valuable and enforceable but should be adopted only after much forethought and consideration of various scenarios. Any of our attorneys would be happy to lead your board through the discussion and amendment process.