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I recently bought a condo unit for rental property (not rented yet). The condo complex consists of 4 buildings with 8 units each and is located in suburban St Louis MO. I checked on the unit this morning and found this undated notice laying on the hall floor in front of my unit's door:
TO ALL (condo name) RESIDENTS
We want to eliminate future problems that could arise within our condominium complex?..A couple of our units have been purchased for the sole purpose of using them as rental property. One of our concerns is that this lowers our property value; and mortgage lenders take into account the ratio of rental to owner-occupied units. If that ratio is too high, loans are difficult to obtain for future purchasers. (If a unit is owned by a family member and occupied by another family member - mother, grandmother, etc. - that is not considered a rental property.)
We would like to amend our By-Laws to read that any future purchasers of condos in our complex would be occupying the unit they buy.
Another concern is pet ownership. We would like to amend our By-Laws to allow one pet per unit, weight not to exceed 25 pounds; and all animals must be on a leash when outside. ( .. (town name) .. does have a leash law in effect now.) This amendment would not apply to present owners.
We have consulted an attorney versed in condominium law who will be handling the structuring of amendments; but we need to have your input and approval before proceeding with any of this. If you have any questions or comments, please feel free to call a Board member. We need to have your response by June 22. If you cannot return this to one of us yourself, please call and it will be picked up. Thank you.
(3 Board member names and phone numbers)
Amendment #1 (rental property) Check one
Approve___________
Do not approve_____
Amendment #2 (pet ownership) Check one
Approve___________
Do not approve______
Print name:
Signature:
Address:
Date:
It is unlawful to discriminate in housing on the basis of race, religion, sex, handicap, or family status.
Beyond that, anything goes if the condo association approves it.
The upshot is that if you purchase a condo for a rental property, or if you have been flipping and purchased a condo with the intent of making a quick profit, you incur some huge and imponderable risks because you do NOT have control of the building and the property. I personally consider it to be an extraordinarily bad idea to purchase a condo as a rental. For the same reasons, I steer clear of historical neighborhoods and any neighborhood that has covenants establishing and maintaining a property owner's association.
About the Author: Jim Locker is a technical guy who has done a lot of real estate investing and landlording. The experiences he writes about and advice he gives are either first hand, or in answer to specific questions posed by others. He is commonly known as jiml8 around the internet.
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