How to find Condos that you can rent out?

Question

Hello everyone,

My question is a simple one, yet, I am unable to find out a lot of information on google regarding how to find condos in buildings where the HOA allows rentals. I'm currently working with a realtor and rely on him sending me mls listings. However, these only come in 1-3 at a time and every other day. On the mls listings, it seems it's just an option he can check off. "Allows rentals" yes.

Are there any resources outside of the mls where you can see if the building/condo association allows rentals? I'm unable to find a way to filter this in other resources such as realtor.com redfin etc.

Any information is appreciated!

Greg Scott · Answer

It would not be practical for public websites to incorporate and interpret HOA bylaws which can change, and are sometimes circumstance-specific.

I'd be careful looking at condos as rent properties. Aside from the bylaw issues, you don't have any control over a big chunk of your expenses. Just google the term "condo special assessment".

If you buy a condo, you should also conduct due diligence on the HOA. Google "zombie condo" to see what the worst-case scenario looks like.

Tom Shallcross · Answer

Since you are in Chicago, you may be in luck. If you know the address of one of the units or the PIN you can look it up at the Cook County Recorder site - http://ccrecorder.org. Some HOAs record the bylaws and amendments so you can click on the actual document and read through the bylaws. Other option would be to call the management company or HOA and request the document or ask the question directly.

Jared Hottle · Answer

If you can figure out the names of the condo associations in your town you should be able to google alot of them and find their bylaws or contact info for the president and get ahold of them directly. Most of them have an online website for the condo owners to use. If that fails the HOA docs should be filed with the county and will be public record in our county all those records are digitized so you can look there as well.

Eliott Elias · Answer

You can't subcategorize based off of HOA's that allow for rentals. What you can do is research every HOA in your market and see which allows for rentals then know what HOA to look for

Michael K. · Answer

A quick way to do this would be to see which buildings have apartments listed for rent. If a big building does not have any active or recent rentals that would be a red flag for me. Generally speaking, if you are interested in going this route I would look at small 3-4 unit buildings, they are more lax about things like rentals and Airbnb, just don't anger your co-owners. Large buildings may have rent caps and lenders will care more about their owner occupancy rate than small buildings which are not scrutinized in the same way. Hope this helps!

Last thought, you can also just walk up to a doorman and ask if they have any units for rent in the building.

Theresa Harris · Answer

I doubt there is an option for that on MLS. Depending on the size of the area, your realtor will know of some condos that allow rentals. For the most part, find places that you like and then ask the listing realtor if they allow rentals. You can also look at condos for rent and then see if there are others in the complex for sale.

Lisa Wright · Answer

I havent worked w a lot of condos but in Michigan, so far, ive found HOA rules like:

only 10% of community can be rentals. And owner but have lived there for 2 years prior to renting.

Plus they limit signage and open houses and charge that monthly fee.

Phillip Nightingale · Answer

I'm just looking for a way to look at more properties than I'm currently getting and maybe just using that method to look at properties in other markets as well.

Paul De Luca · Answer

@Phillip Nightingale

I'm not aware of a comprehensive database showing which buildings/HOAs allow rentals or not. Why do you need a resource outside of the MLS to determine if an HOA allows rentals? As you said your MLS search can filter for properties that definitely allow rentals.

If you come across a condo that does not have a yes or no answer on the question of allowing rentals, ask your agent to check with the listing agent. Sometimes there are rental restrictions which your agent will want to disclose to you anyway. I just don't think you should be creating unnecessary work for yourself.

Drew Sygit · Answer

@Greg Scott nailed it. Tread carefully.

How to find Condos that you can rent out?

How to find Condos that you can rent out?

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