Hopefully this is the right forum to raise my question.
I have my home that I recently bought ( less than six months ago ) and it’s under a primary residence mortgage, it is a condo unit, I’m being relocated from my day job and I don’t want to sell it,
Is it possible and legal to rent it out ?
And how will that work as far as income taxes, approval from the association, etc.
Thank you for any feedback I can get.
You have to check with your mortgage lender. You can dig through the paperwork or just pick up the phone and call them. They typically require you to occupy the home for at least a year before you can rent it out.
You also need to check with the HOA to see if they allow rentals and what restrictions they may have. Again, picking up the phone and asking would be the easiest way to start but you can also review the documents to verify what they are saying.
Nathan G. is correct although I believe there are provisions that allow for instances beyond your control such as yours. Read the occupation clause of your mortgage carefully to see what it says.
Your HOA also has a say in the matter. Some restrict the number of units that can be rented. Read your HOA docs you should have received at closing. The HOA rules should spell out any restrictions and approval process. If not clear, call the HOA president.
Taxes are a whole other topic but basically any costs you incur getting it ready to rent should be capitalized but there is a provision to expense up to $5k of start up expenses (operating expenses incurred BEFORE it's rent ready). After it's rent ready (usually that means 'on the market') then you can start deducting any operating expenses.
Message me if you want more details on the taxes. I have a lengthy article that describes the rent ready process and tax implications.