Rental Basics in Atlanta>Question Details

Joi.ferrer, Other/Just Looking in Atlanta, GA

Renting out a condo

Asked by Joi.ferrer, Atlanta, GA Thu Apr 26, 2012

Can anyone explain to me how condo owners must go about renting their unit? I am wondering what does it mean when condos have a "20% cap" on the number of units that are allowed to be rented out. Do all complexes have some sort of cap? And if the complex is mainly rented, how would a unit owner go about getting on the "wait list?"

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Often owners are surprised to learn their HOA does not permit rental of units. If this is the situation either no rentals or no additional rentals, check to see if there is a hardship exception. Often HOAs will make exceptions where there is a change in life circumstance such that not leasing the property causes an undue hardship.

If that does not work consider selling the property with owner financing. Here you may get a larger payment upfront and transfer responsibility for increases in taxes, HOA costs and repairs to someone who might as easily been your tenant. Many people seeking owner financing will pay as much as rent would have been. This is the simplest way around the rental prohibition.

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0 votes Thank Flag Link Fri Apr 27, 2012
You must read the condo covenants and restrictions. As a rental property manager I have a unique way of making sure all condo owners can comply and also rent the units without dealing with a wait list.I myself have used this loophole as well as clients and it wks. Happy to discuss it with you. 7705472372
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0 votes Thank Flag Link Thu Apr 26, 2012
In Georgia, most HOAs have a cap. Most of the time that cap is 25% or less.

Read your bylaws, call your property manager and get on the landlord list.

Absentee ownership can crush neighborhood value, so unmitigated landlord rights can be a major detriment to the quality of a community. Nothing against renters in general, but the rules make sense most of the time.

Furthermore, values in a community or building can be devastated by fiscal mismanagement and among other things, too many renters.

With that in mind, most lending guidelines for conventional or FHA funding have a number of requirements for certifying the fiscal health of the HOA and the overall value of the community. Quite often, it's those guidelines that make a community get their act together - when a building is not "FHA approved" for FHA buyers, then you can count on steep drops in value...
0 votes Thank Flag Link Thu Apr 26, 2012
Unfortunatly, the short answer is to contact your HOA. The HOA has the right to decide how many units are occupied by homeowners and/or renters. Every HOA is different and has varying rules and regulations. Those rules and regulations should have been given to you prior to the purchase of your property. Good Luck!
0 votes Thank Flag Link Thu Apr 26, 2012
When you bought the Condo, you were given a copy of the CCR's, this spells out rules about pets, parking, painting, subletting, etc.
Does that sound familiar?
Since there are probably no two exactly alike;
you should rear yours and find the answers to your questions.
Everything will be revealed to you.
0 votes Thank Flag Link Thu Apr 26, 2012
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