My Condo Building is proposing a Rental Cap.. Help!

6 Replies

Hi all,

I received news this week that the board at the condo building my family owns two units in is calling to question of if the building should revise the current rental cap rules. These rules are quite lenient, and I must admit is part of the reason why we invested in the building in the first place. 

Does anyone have any experience on arguments against rental caps? There is a board meeting next week that I want to be prepared for.

Thank you!

Originally posted by @Daniel F. :

Hi all,

I received news this week that the board at the condo building my family owns two units in is calling to question of if the building should revise the current rental cap rules. These rules are quite lenient, and I must admit is part of the reason why we invested in the building in the first place. 

Does anyone have any experience on arguments against rental caps? There is a board meeting next week that I want to be prepared for.

Thank you!

 What is the PROBLEM they are trying to resolve?  

Originally posted by @Bob Bowling:
Originally posted by @Daniel F.:

Hi all,

I received news this week that the board at the condo building my family owns two units in is calling to question of if the building should revise the current rental cap rules. These rules are quite lenient, and I must admit is part of the reason why we invested in the building in the first place. 

Does anyone have any experience on arguments against rental caps? There is a board meeting next week that I want to be prepared for.

Thank you!

 What is the PROBLEM they are trying to resolve?  

I am not aware of the specific problems as it was only an email letting us know the topic will be raised and voted on. If I had to speculate I would assume it probably has to do with a combination of being more stringent on the rental cap due to FHA guidelines and their requirements, along with wanting to preserve the building's atmosphere of being a condominium not a hotel.

It would be hard to argue against keeping easy financing.  What are the current leasing terms?  If there's been too much tenant turnover maybe the alternative would be to tighten up on the length of leases or if it's the moving trucks every weekend restrict move ins/outs to business hours.  Try to encourage the least restrictive solution.

This is the hot topic in condo buildings these days.  The best thing you have on your side is that, at least in the DC metro area, a super majority is required to change the bylaws.  It's rare to get that many people to vote for anything, which is why they rarely pass.  Then again, if the board does a good enough promoting the cause and explaining the circumstances, you may very will be stuck with this change.  It's a drawn out process and doesn't happen overnight but many associations are pushing for this for the exact reasons you mentioned above.

@Daniel F. why would you have a problem with this?

Rent caps help your condo value. They help keep up owner occupied units which naturally have more interest in keeping the building nice vs. renters. They help lower insurance and HOA operating expenses. (Renters are harder on the building than owners from my experience). And you already have rented units. So this will now become a rare commodity.

I would welcome it.

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