Could prohibiting the leasing of units bring the property value up?

Question

All the homeowners in the condominiums where I live are supposed to vote and to decide if they want leasing of the units to be prohibited. This would affect only future buyers, so the current owners are still allowed to lease their units if they want to. How passing this law would affect the property value in the future? What would be the pros and cons of each option? Right now 37% units are occupied by renters, and according to the building associations, bringing this number down could bring the property value up in the future. They are really trying to pass this law. Is there a catch in this?

Answer 1

Condo association covenants like this have pros & cons. The property values could increase as units become more attractive to buyers who are apprehensive about having renters for neighbors.

However there could also be some folks who would no longer have interest in buying if prohibited from renting in the future. Some buy w the sole intention of renting. Others may buy the condo as a starter home & want to keep & rent the unit when they move to a larger home (for example)

In addition, sometimes rules like this are difficult to enforce, & could even face a legal challenge at some point which the association would be obliged to defend & this costs money of course.

Bottom line though is that statistically, renters don't care for a property as well as a resident owner, & having some propertys in disrepair can affect others in close proximity.