Rental Basics in 60610>Question Details

Hlpplz2012, Home Owner in 60610

Changing Property Type

Asked by Hlpplz2012, 60610 Fri Oct 14, 2011

I recently bought a condo as a primary residence but would like to move. I dont want to sell it due to the market so I would prefer to just rent it out. Currently there are several units in the building that are being rented out. I believe the board would like to have all units as owner occupied. Is it legally possible for the board to prevent me from renting out my unit. Can they pass a clause stating that going forward all units must be owner occupied which would allow those currently renting to maintain their status but force me to live there. What must be done to change the classification of the property to investor from primary residence for the mortgage company, city or state.

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Yes,they can pass a clause to prevent you from renting. and if there are more owner occupied than rental occupied they may be successful because owner occupiers in general do not like renters. Rent right now if you can while there is no clause. If they do put a clause in try to lobby that the language reads you can continue to rent the unit even after the current tenant moves out. Not no rentals after the cuurent tenant moves out. My advice sell now and leave those folks in their own world.
0 votes Thank Flag Link Sat Oct 15, 2011
The board controls the condition of renting the condos in your building. The way to change this rule is to
attend the meetings and try to speak to your neighbors in voting to change the board's rule.
Debbie Bergthold-Smith Classic Real Estate 708-267-5552
0 votes Thank Flag Link Fri Oct 14, 2011
Yes they can change the rules with the approval of the board. If you want to help them prevent from changing something, I suggest going to the condo meetings and attend the meeting to have your voice heard.
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0 votes Thank Flag Link Fri Oct 14, 2011
The condo association can change the rules on renting to whatever they want, but of course they need approval from the owners or the owners can throw them out and change it again.
You do not need to tell the mortgage company anything. As long as you are paying your mortgage, they could care less. People change their primary residence to rentals all the time.
0 votes Thank Flag Link Fri Oct 14, 2011
nothing.. the HOA will win.. you bought into a group investment and the group rules. the market is not going to improve int he next 5 years so just sell your place- the bank will probably eat some of the loss - maybe 1/2 of it but you can not buy another unit for 2 years if ya want to play that card. move on with your life.. I sell about 10 million dollars in real estate a year and i am sure this is the best advice..holding the property will not serve you in any way if you must move..if on the other hand you just want to move you have to take the loss or stay your soul and just deal with the reality.. and to the guy from Indy.. the condo board certainly can do something about you breaking the rules and they will and you will loose the case and pay they all damages..make no mistake.. you entered into a contract and it is enforceable in IL. review your docs with the board and see if its clear..if not bring in a lawyer.
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0 votes Thank Flag Link Fri Oct 14, 2011
Greetings! Look at your association bylaws and/or talk to the president or property manager. If a policy exists that no new rentals are allowed then it should be formally stated in your condo docs. Yes, the board, with the condo owners' majority approval, can pass a clause stating that no new rentals allowed or that owners who purchase after a certain date are not allowed to rent. As per the mortgage company, as long as you have been in the condo for a while (6mos-1yr) and you continue to pay the mortgage on time, you shouldn't have any issues with the lender. If you have insurance on the condo then you may want to change the status with your insurer from owner occupant to investment.
0 votes Thank Flag Link Fri Oct 14, 2011
All HOA bylaws are written differently. While most have language that will discourage home owners from renting their property there is little that and HOA can do to stop someone from doing so. Details will vary and I would suggest having your specific Commitment and Restrictions reviewed by a professional. However my experience has proven to me that you should feel free to rent your place out. As for the mortgage company changing status should be just and easy call.
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0 votes Thank Flag Link Fri Oct 14, 2011
The condo board can indeed decide not to allow any more rentals - I know this because it happened at a condo building where I have a rental. I bought it to rent and, luckily for me, the board "grandfathered" me in and allowed me to rent it, but any purchases after that cannot be rented.
You would probably need to speak to an attorney regarding this status, but mortgage lenders are wary of condo buildings with too many rentals.
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0 votes Thank Flag Link Fri Oct 14, 2011
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