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?