---
title: Imposing a rental cap and limiting rentals to one per co-owner
description: At our Annual Meeting of Co-owners, an owner suggested that we look into imposing a rental cap, citing property values among other factors.
image: https://www.condoassociation.com/hubfs/real-estate-3297625_1920.jpg
---

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

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## What do you think? Question:

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.

 

 

Thoughts?

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## What do you think? Answers (23)

#### What are your thoughts on this topic?

***Comments and postings are not legal advice**, but are the opinions of our readers. This forum and its contents are being monitored. Please be respectful of each other. *  
  

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