It will be ok. I do not forsee any problem for you. Feel bad for the time share suckers!
While the use of a unit for rental will be controlled by the governing documents, the ability to run a timeshare will be controlled by State statute. In NJ there are separate laws, with mutually exclusive requirements for condo formation vs. Timeshare formation.
I heard of this happening a few years ago in the Fl. Panhandle.
I can see all kinds of problems. If the investors own the majority of units they may have total say.
I wonder if the BOD could have a vote to amend the documents to limit the number of rentals or leases. The condo needs to hire a good real estate lawyer to advise them.
I have a 2 bed/2bath condo in Charlotte, NC. If they are interested, I am selling.
Check your Rules and Regulations, Trust and Master Deed. There should be a provision in there regarding the allowable length of a rental in any one unit. We changed our rules for renting to be no less than one year. This is fine for us, but with your location you may want to put a vote out to the other permanent residents and amend your trust doc. If you have a condo attorney he can prepare the paperwork for you to get votes and signatures. Yes some work, but better than living next to a new family of 6 every two weeks and having them destroy the property (we don't live here we don't care attitude).
Our Condo Docs in PA control all rentals with 2 paragraphs
1. Any rentals mut be for at least a one-year lease.
2. No unit may be used for transient rental.
The above 2 regulations would obviate any time-share or similar activity.
So, get 2/3 of the owners [or as required by your docs] to pass similar new regulations.
Again the original poster might want to state his state and municipal jurisdiction.
A rational and informed answer to his question must be informed with the information of where this condo is located.
As others have stated, it may already be forbidden by local prevailing statutes and the original declarations of the association he is referring to.
Good to check docs but if someone buys up enough units they will be able to amend docs to suit their purpose, not yours. I am also in a tourist area. Although no one is buying up these units more and more out of staters are buying units as second homes and their priority is low fees. So they can also "take over" and let the place go to pot decreasing the value of the properties for full timers. And they don't care about new FHA "owner occupied" rules because they do not go for FHA loans.
A couple thing to consider:
1. Timeshare occupants will desire and require nice surroundings. Therefore forcing associations to maintain their property in pristine condition. Thereby increasing property value.
2. Timeshare owners will probably be paying their assessments on time. Therefor providing the necessary cash flow to maintain the property. Thereby increasing property value.
I live in a tourest area in Florida and would not mind seeing investors that can help keep my property values up, considering that we have about 20% of our current owners not paying their monthly dues.
Future Events Appear Real.
You may be projecting some negative consequences on events in the future...
Take it easy man, chill, toke a bowl, walk your dog, talk to your relatives. Life is good , and you don't need to worry about stuff that has not happened to you yet.
I recommend experimenting with mild enhancing drugs. Start with some mild doses of psylicybin mushrooms. enjoy the extacy!
A little perspective...I have a number of investment properties, single family, condos, long term, vacation rental, motels, etc. In my voice & data business which specializes in hospitality, I have worked closely with time share organizations for over 20 years, some large, some small, some good, some not so good. If your properties are sought after for a timeshare conversion, and it is legal in many resort areas, the investors may well wrestle control of the property from the current owners given some period of time. They can then modify the regs as they see fit within the local zoning laws, etc. This can be good for property values...or bad...in the long run, depending on how well managed the timeshare operations are. For those willing to sell, they will likely get a little more than market rate, but don't wait too long. For those who stay, it can be very frustrating if the timeshare operators are not quality operators. I have even seen operators deliberately do a poor job intentionally to effectively force out the hold outs.
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Many factors play into the desirability of any property for timeshare conversion including the economy, local area conditions of all kinds, availability of low cost financing for the developers and much more. Good luck with your time share scare!
Resist all and every attempt to have your condo converted to time shares. If at all possible hire persons to take care of people like John D.