If a properties have rental restrictions (as in, you can't rent for 18 months), are they generally priced a little less because of this?

Asked by ca_lexa, Boca Raton, FL Mon Jul 15, 2013

Help the community by answering this question:

+ web reference
Web reference:

Answers

3
marc jablon,…, Agent, Boca Raton, FL
Mon Jul 15, 2013
No. Condos in Boca Raton with rental restrictions are priced based on location and demand. Many condos place rental restrictions on owners because they want to limit the number of investors who own in their buildings.

If, for example, a building has 50% or more investors in it, then new buyers will have trouble getting mortgages in order to purchase in that building. Also, many condos feel that renters do not take the same kind of care of property as do owners.

If you're looking purchase a Boca Raton condo for investment, then you will want to look into the buildings that allow immediate rental. Even those buildings, however, will most likely have a restriction of 1 renter per year: either an annual renter, or a seasonal renter.

Marc Jablon
Johnson and Johnson Team Realty
561-213-6139
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
0 votes
Bob Brubaker, Agent, Lake Worth, FL
Mon Jul 15, 2013
Ca_ Not really. Many condo Communities with such
restrictions are considered more secure by interested
buyers. Two main concerns are the fear of too many
"disinterested" investor owners unavailable and
detached. Also, Control of the Community concentrated
in the hands of just a few major owners!
Recently, new FHA approval requiremets may also
be a factor to have such restrictions be considered
another "plus" for some communities and their values.
What "limits" the options of some buyers may be an
attraction for others!

Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
Realtor,and Licensed Community Association Manager
Web Reference:  http://pbc-realcam.com
0 votes
Annette Law…, Agent, Palm Harbor, FL
Mon Jul 15, 2013
With the exception of 'beachy' real estate, these properties can be priced HIGHER!
Just like gated communities suggest a level of security, properties that reduce the number of temporary residents communicates a similar security. Gated communites have a boat load of rules AND have higher value and greater value retention.
-
Areas with a high percentage of rentals are typically valued less than those with a high percentage of owner occupied homes. It is worthy to note, in some communities with high non-resident onwer rates, lenders will not fund a purchase.
-
Now there are exceptions.
-
What this rule effectively accomplished is placing a poision pill that kills investor potential, but does NOT PROHIBIT investor purchase, (that would be illegal) which is EXACTLY the purpose.
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Boca Raton Zip Codes

Email me when…

Learn more