(no title)
josh3736 | 2 years ago
I'm on the board of my condo building's HOA. 5 or 6 years ago, we passed a rule that requires 50% of units building-wide to be owner-occupied. Once the limit is reached, there's a waiting list for anyone who wants to rent their unit. (Meaning you must wait until an owner moves back in or sells their unit.) There's also a hardship waiver at the board's discretion.
The PE/RE investment firms won't touch units with this rule in place; a unit they can't rent makes no revenue and is a waste of capital for them.
Note that this (or any kind of arrangement meant to discourage these kinds of buyers) gets contentious when someone is selling, especially if they're struggling to find a buyer. We recently had someone who needed to sell quickly, had interest from some kind of firm, but no offers from normal buyers (ie human people) due to the soft market. The firm made an offer contingent on the HOA rescinding the rental rule. We were very much not inclined to do so, so there was a lot of tension until the sellers finally got an offer from humans.
(This is not meant to insinuate that PE firms are run by non-humans. Evidence remains inconclusive.)
Of course, this rule can also spook human buyers, but IME once the details and reasoning for the rule is explained, it isn't usually a blocker.
clbrmbr|2 years ago