Milwaukee condo association approves tenants

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Milwaukee condo association approves tenants

Rebecca KnoxBusiness Member
Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes

We are considering purchasing a condominium to use as a rental property in the Georgetown Condo complex off of N 95th & Villard. This would be our first condo purchase.

However, I just received the copy of the bylaws which they amended 2/16/16 and it states that any tenants must be approved by the association and the association has 30 days to approve.  (They also say that the condo cannot be rented out for 1 yr after ownership change but the seller is going to see if they can get a hardship exemption.)

My concern is that the condo association has such control to approve tenants and the time frame they have to do so. Does anyone else own a condo in this complex or have a similar situation where the association has to approve your tenant and how has it worked it out for you? 

Thank you in advance for dropping any knowledge you may have on this topic. 

Captain Save-A-Home LLC
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Sai T.
Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
10y

I personally will not buy the prop where you have to depend on HOA. Tomorrow, they will have a new rules and regulations!

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  • Joan L.
    Somerville, MA · Member since 2016 · 30 posts · 20 votes
    10y

    Not for that complex, but I also own a condo where the board has to approve the tenant. Luckily for me, it's only 7 days, after which no disapproval is implied approval, and technically they approve the lease and not the tenants. Legally, they don't want to get into the business of approving the tenants, just to make sure the lease terms were appropriate.

    It highly depends on the board, the board members, and their relationship with you.

    My condo board drew out the approval process for the entire 7 days, this after my condo sat empty for a month while I tried to find tenants, and 2 weeks before the lease was supposed to start. Certain board members nitpicked - saying I needed to require renters' insurance when the docs didn't say that at all, said I left out required parts when they had just missed the sections (or didn't read it). When I wrote back, they didn't respond until days later. When I called them out on it on the 7th day, one member spoke up and said she didn't realize she had to explicitly approve. It was extremely nerve-wracking and I know my board doesn't even consist of bad, vindictive people, just busy people.

    1Reply
  • Sai T.
    Investor · West Chester , PA · Member since 2011 · 620 posts · 138 votes
    10y

    I personally will not buy the prop where you have to depend on HOA. Tomorrow, they will have a new rules and regulations!

    2Reply
  • Rebecca KnoxBusiness Member
    OP
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Thank you Joan. What you are relaying is exactly my concerns, except instead of 7 days, we'd have to wait 30 and then if they didn't approve, it may be another 30 days.  Just writing this is making me realize this isn't a good situation. 

    Captain Save-A-Home LLC
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  • Joan L.
    Somerville, MA · Member since 2016 · 30 posts · 20 votes
    10y

    @Rebecca Knox, good luck! My condo purchase only came about because it was my primary residence (and I thought I was going to live there forever). It's in a good rental area, knew the board was full of good people, and knew, from previously being on the board myself, the process of lease approvals should have been painless.

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  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    10y

    I have several condos in another development on 95th & Brown Deer and likewise, they allow tenants but the association office must approve.  What I have learned is get to know the person who approves applications, and do all the background work for them.  Make their job easy as cake and the approvals will come faster.  This office would take 5 business days but generally I get my approvals back in 2-3 days using this method.

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    Yikes.  It would be like having a bunch of partners with control of your business that you didn't pick, and who change constantly.  I'd run the other way.

    I bought a condo as my home that I intended to keep and rent out, and after living there and dealing with the HOA for one year, I couldn't wait to get out of there and sell it. I'd never buy anything with and HOA again.

    I know it works for some people, but what a pain.

    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    10y

    Having the HOA change the bylaws to make renting more difficult or impossible is a substanial risk without possible mitigation. You have no control over your destinty. If the board rules out renting, because they had an incident with a tenant your single source of income just got terminated. At that point your exit strategy is to sell the condo, which is potentially ok as long as you bought it low enough that you can reasonably expect to find a buyer before it eats you alive. That is of course the worst case scenario; most likely your situation is more like what Dawn describes and you have to get just really good in working with the people in the office.

    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    10y

    Having the HOA change the bylaws to make renting more difficult or impossible is a substanial risk without possible mitigation. You have no control over your destinty. If the board rules out renting, because they had an incident with a tenant your single source of income just got terminated. At that point your exit strategy is to sell the condo, which is potentially ok as long as you bought it low enough that you can reasonably expect to find a buyer before it eats you alive. That is of course the worst case scenario; most likely your situation is more like what Dawn describes and you have to get just really good in working with the people in the office.

    1Reply
  • Rebecca KnoxBusiness Member
    OP
    Specialist · Milwaukee, WI · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Thank you everyone for your advice.  I truly appreciate it!!

    Captain Save-A-Home LLC
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