<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1061566567187268&amp;ev=PageView&amp;noscript=1">
Skip to content

Imposing a rental cap and limiting rentals to one per co-owner


This question is submitted by Cindy P. out of Michigan

At our Annual Meeting of Co-owners, an owner suggested that we look into imposing a rental cap, citing property values among other factors. This was well-received by the others in attendance, so our Board agreed to look into it, starting with an appt with a condo attorney in mid-August.

Does anyone have a rental cap in their Associations? If so, how does yours work? We have 48 units of which 9 are currently rented. This is 18.75%, and a couple of our Board members want to set it at 7 units, or almost 15%. We currently have 2 investors who own 2 condos each that they rent out. One Board member's suggestion is to limit rentals to one per Co-owner. Another thinks that LLC's should be ineligible.

As the Board president, I have concerns as to how we would enforce this, and the legality of it. As I mentioned, we currently have 9 rentals. When I asked if the limit of 7 units went through, how would we handle the other 2? A Board member said he had gone through this before and a lottery was held. Those who didn't "win" had to sell their condo at the end of their current lease. I smell a lawsuit, but perhaps I'm over-thinking this.

Based on my online research, this is a hot topic indeed. Would appreciate this community's insight and experience.




meadosw v2


Answers (23)

What are your thoughts on this topic? Please share your answers below. We ask that you remain respectful of each other, and be advised that responses are monitored.