Dear Monica: I live in a very nice condo complex that includes in the HOA rules a restriction on renting one’s unit. I am going to sell my condo this year and am wondering if such a restriction is a good or bad thing from a marketing standpoint. What do you think? Joan D.
Dear Joan: Whether a rental restriction is a good or bad thing depends on the owner/buyer. Some owners love the fact that all residents are owners because they feel that owners have a vested interest in the complex and that it is harder to enforce condo rules on a renter than on an owner. Even if the lease stipulates that the tenant must adhere to the rules, some HOA owners don’t think this is enough to maintain control if rules are broken.
From a marketing standpoint, rental restrictions can be a negative selling point. Buyers don’t necessarily want to buy a home that they can never rent if, for example, they are relocated and want to keep their condo. There are also buyers who want to rent for a while until they move in but can’t do this with rental restrictions. Thus it narrows the market considerably and potentially affects the value of the home. You will still be able to sell your condo even with this restriction but fewer buyers will be interested in the property.