You chose to purchase a condo believing the perks offered would benefit your lifestyle. If you decide to move out, keeping the unit as an investment to rent out may prove difficult.
Your condo association’s governing board may have some input into rentals. Learn how your association may put the brakes on your investment opportunity.
What did your documents say?
Condominiums offer residents a maintenance-free lifestyle. When you closed on your unit, you did so with the knowledge that an overarching set of complex rules governed what the condo association handled. These documents also give you a detailed look at what happens should you try and lease your unit.
What can a condo association dictate when it comes to leasing?
The condo complex may not want to allow too many units to become rentals. When this happens, the overall value of each unit falls, and you may not turn a profit when you sell. The condo association’s documents may place a cap on the total number of units rented at a time to stop a devaluation of the property.
Can the association deny individual renters?
If your complex is not at the rental cap, you may believe it is safe to lease. While this is true in some respects, the association documents may also indicate that a renter must go through an approval process before leasing. Under the Fair Housing Act, an association may not reject an applicant based on gender, age, race, country of origin or religious preferences. However, the association may deny the rental application if an applicant has a criminal background or poor credit.
Florida law allows condo associations to set out how they operate in their formation documents. Before you decide to try and rent, thoroughly review your copy to ensure you are not in breach.