Has anyone had luck in challenging condo association rules regarding the renting of a condo you own?

Question

I've read several postings regarding condo associations and the enforceability of the rules. In some cases, people have been able to challenge and win.

I ask because the market I own is in the pits for selling real-estate, but actually seeing a very tight rental market. I consider many of the condo rules to be limiting and probably lowering our potential value compared to competitive buildings that have more liberal rules.

Answer 1

First, is this a condominium or a co-op? If it's a co-op, you sort-of purchased stock in a corporation and have a proprietary lease. In that case, the chances of being able to rent it out are all but impossible.

If it's a condominium, it all depends on where the rules came from. If they are from the "Rules & Regulations," you have a good chance to get around them. They are only Board Resolutions, and are not bound by anything.

On the other hand, if they are a part of your deed restrictions (Declaration, CC&Rs, etc.), you might have a more difficult time, but it might not be impossible. Sometimes they have a "cap" on the number of owner-occupied units. Once there are more owners than the cap requires, you can rent yours out. Some deed restrictions have hardship clauses as well, as might your state statutes. The Fair Housing Act may help you also.

Like the person above suggested, get a real estate attorney who can go through the documents and advise you.

Answer 2

If the 'no rentals' rules were in effect at the time of your purchase, your chances of gaining a change via legal means are very slim. If the rules were voted in by the condo association AFTER your purchase, you might stand a chance. Check with a real estate attorney.

Answer 3

I found this new website on rentals and leasing which could be very helpful at http://www.rentmystuff.blogspot.com/ and i Bookmarked it for future reference.
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