Is it true that some HOAs in Williamsburg will not allow you to rent your townhome? Is that why so many townhomes are for sale for rockbottom prices?

Asked by Carolinejoy, Williamsburg, VA Tue May 29, 2012

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john womeldo…, Agent, Williamsburg, VA
Thu Sep 27, 2012
Another point that wasn't mentioned is prohibition of renting on a weekly basis. I get numerous inquiries from folks who want to buy a Williamsburg VA condo or townhome to use as a second home and then rent it as a vacation home on a weekly basis. This is not allowed in all of James City County or Williamsburg . Unlike most other vacation destinations. There are resort condos in Kingsmill that would be the one exception but the management fees are quite high. As a result it doesn't work for most buyers from a financial standpoint.

I would be happy to assist with any other questions about Williamsburg VA real estate.

John Womeldorf. A Realtor with
Liz Moore and Associates
Williamsburg, Virginia , 23188
Web Reference:  http://MrWilliamsburg.com
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James Barr, , Williamsburg, VA
Wed May 30, 2012
I am not aware of a total prohibition on renting townhomes or condos, however most have a cap on rentals. This limitation is to insure that owners are not outnumbered by non owners when major issues come before the Board or the residents as a whole.

The reason that prices are down for townhomes as well as detached homes is a matter of supply and demand exacerbated by the number of distressed homes on the market., Distressed homes are defined as foreclosures, short sales etc.

Jim Barr, ABR, CAE, SRES, Realtor
Keller Williams Realty/Hilltop
Phone: 757 884 6181
email: Jim@jamescbarr.com
http://www.jamescbarr.com
http://www.hampton-roads-homes.com
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Andrea Kosto…, Agent, Williamsburg, VA
Tue May 29, 2012
Some HOA (or condo associations) have decided (by a vote of the homeowners) to establish a rental cap or ceiling. Different communities have different caps or ceilings (one might be 25% while another is 35%, etc). Some communities have not established rental cap or ceiling, it really depends upon where the townhouse is located. Many times thoses ceilings/caps are there to protect the investment of the owners so that there are not too many renters.

If the townhome is actually a part of a condominium association then many times the ceiling/cap is in place so that the owner will be able to sell in the future. FHA & VA have guidelines that if more than a certain percentange of a condo association is rentals than they will not allow loan money.

If you have any more questions, feel free to contact me at 757.532.3351. Good Luck
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, ,
Tue May 29, 2012
The HOA's have the rule, but it's not because the HOA wants to be tough about it. It's because many of the lenders won't give loans if more than a certain percentage of the homes is rented. Too many investment properties in a single neighborhood is bad for the entire neighborhood. You really don't want to buy in a neighborhood that is at or near the rental cap... unless, of course, you are getting an incredible deal.
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Tim Parker &…, Agent, Williamsburg, VA
Tue May 29, 2012
Yes, absolutely true. Some HOA's will have what is called a rental cap when only a percentage of the units can be used as rentals.
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Mark DellaPo…, Agent, Williamsburg, VA
Tue May 29, 2012
Some HOA's want to insure that there are an adequate ratio of owners to renters. This is so the HOA's can maintian thier FHA certification. An FHA certified condo allows the buyer to get an FHA loan at 3.5% down. HOA's that don't have an FHA certification must be purchased using a conventional loan that often require 10-20% down from the buyer.

Most townhomes don't have this requirement. Usually this requirement if only for condos. However, any HOA covenants and restrictions are disclosed during the purchase process.

Let me know if I can help with anything else!
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