Is it true that typical condo regulation prohibits the owners from sub-leasing, say, a room out of the condo?

Question

A buying agent told me that it's very common for the condo regulation to have such a restriction (allowing leasing of the entire unit but not part of an unit). Does anyone have insight if it's true? If so, what's the main motivation for putting in such a restriction?

Answer 1

I am an insurance agent and work with auto and home insurance. I also am a condo owner. I know that if you have a temporary renter, i.e. a friend/family member, usually no one will pay you any mind and nothing will come of it as long as it is temporary (no more then a couple months). But if you sub-lease that is almost always against the rules for every condo association. The only reason that I have been told is that you are subjecting a person that was no okayed to live there, to a possible liabilty suit with the association, if they become hurt on the condo associations' property. Although, this can happen to anyone that is passing through, they take money (condo dues) to cover you in that event. That is not the case with the sub-leasee. Also, they may put a lean on your condo if they find you sub-leasing and your condo insurance can cancel you. Not good. It is better to rent the entire condo out then to rent only part of it. Hope this helps.

Answer 2

That is a common restriction. Subletting units, or rooms in units, means there are residents who are not the owners and who don't directly pay condo fees, these residents would not be as likely as an owner to follow association rules. The association would then have the difficulty and expense of working with an absentee owner when issues arose.

Your real estate agent could probably give you a better explanation and help you find properties that are designed for rental.

Answer 3

I just bought a condo and found out afterwards that we have that rule. We also are not allowed to rent out our condos unless we were grandfathered in(which we weren't because we just bought it). My neighbor(and the property manager) just rented his out however. To rent it out the potential tennant has to have a police back ground check and be interviewed by the HOA board members. I've been told that they had previous residents that were dealing drugs and hooking out of the condos. They are trying to control that some. Here anyway. It is frustrating though when you have paid for your property and the same rules do not apply to everyone. Our agent told us that none of them were rentals, he lied.

Answer 4

Condo associations have different rules. Check your rules before you sublet anything.