Patrick.net

Condo's are now rentals

By everything   Follow   Wed, 1 Aug 2012, 8:20am   1,109 views   9 comments
In Madison WI 53704   Watch (1)   Share   Quote   Permalink   Like (1)   Dislike  

I get on realtors mailing lists, since they watch the listings all the time, they filter stuff out. I noticed lower priced condo's are often rental option, is this becoming more common, I also noticed the associations are going along with it. I've seen an association go from pushing for over 50 year olds only can buy into the complex, all the way down to investors can buy and rent them. Who's pulling the strings here?

Viewing Comments 1-9 of 9     Last »     See most liked comments

1. iwog Follow Befriend (48) 272 threads 12,446 comments 47 male Lafayette, CA Premium

   1   9:43am Wed 1 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   Associations are desperate to get their fees paid again and landlords are ready, able, and willing. I have one condo now and the HOA doesn't care if I rent it.

2. everything Follow Befriend (2) 3 threads 546 comments Madison, WI

   2   10:49am Wed 1 Aug 2012   Share   Quote   Permalink   Like   Dislike   Do they care who you rent it to?

3. iwog Follow Befriend (48) 272 threads 12,446 comments 47 male Lafayette, CA Premium

   3   2:10pm Wed 1 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   everything says Do they care who you rent it to? Only of the tenant is a nuisance.

4. gbenson Follow Befriend 16 threads 377 comments

   4   10:34pm Wed 1 Aug 2012   Share   Quote   Permalink   Like   Dislike   Most will try and hold it off as long as possible until they are either in severe financial trouble or lost FHA status. Most of the rental caps are based on maintaining FHA status so you can get a mortgage. We have 8 of them currently. Its a tradeoff, landscaping and care of the exterior is all taken care of for me, so I can manage them myself easily, while still holding down a full time job. However I have to pay HOA fees every month. That being said, in our location, only about 20% of the condos are viable, the other 80% have restrictions or financial issues that prevent them from making a good rental. As iwog said, if you rent to a PITA tenant, the association is going to fine the crap out of you every chance they get. I am usually pro-active on getting good tenants cause I don't need the hassle, and don't want my places trashed. I got myself on the board of one place to help tr and clean it up a bit and we are in the process of slapping a few absentee landlords hard for letting in section 8's (the stereotypical kind).

5. robertoaribas Follow Befriend (23) 55 threads 3,759 comments Scottsdale, AZ robertoaribas's website

   5   12:25am Thu 2 Aug 2012   Share   Quote   Permalink   Like   Dislike   gbenson says As iwog said, if you rent to a PITA tenant, the association is going to fine the crap out of you every chance they get. Put a clause in your lease that says, "any fee or fine levied by the HOA due to the actions of the tenant, is an immediately payable additional rent"

6. gbenson Follow Befriend 16 threads 377 comments

   6   8:59am Thu 2 Aug 2012   Share   Quote   Permalink   Like   Dislike   robertoaribas says "any fee or fine levied by the HOA due to the actions of the tenant, is an immediately payable additional rent" Not sure if that would fly. An attorney would probably advise you to keep fines separated from rent since there are legal ramifications of one vs the other and your ability impose, collect, evict, or charge late fees based on them. Also check the laws in your state regarding your ability to levy a fine, since there might be procedural steps you have to take. I usually just spell out the rules (usually a copy of the HOA bylaws) with the fines for each infraction spelled out (typically $50/occurance, which is $10 more than the HOA fines so I get compensated for my troubles). Although because I spend the time to find good tenants, I have never had to fine anyone for a rule violation. You will want to be on good terms with the HOA because they can fine you without warning, but if you are on their good side, you'll likely get a warning first. Depending on the laws in your state, you may have to provide the tenant with one "cure or cause" warning first, (nailed and mailed) with a reasonable amount of time to remedy the problem. So if you are on the HOA's bad side and get fined without warning, you might have to eat the first fine. If your tenants are total chumps and keep up their bad habits during the remedy period, and the HOA keeps fining you... Well that could just get ugly.

7. aragonzbooks Follow Befriend 3 threads 13 comments Mantoloking, NJ

   7   1:02am Tue 25 Sep 2012   Share   Quote   Permalink   Like   Dislike   This is a huge trend in NJ...especially in the resort upscale areas and the HOA adult communities 55+. And the reason as so many have pointed out - is nothing, and I mean nothing is selling at any price. I was born and raised here and we have never seen anything like it.

8. 37108605 Follow Befriend 1 threads 1,055 comments

   8   4:24am Tue 25 Sep 2012   Share   Quote   Permalink   Like   Dislike   Keep in mind that many greedy whores tried to buy apartment buildings and turn them into condos during this smoke and mirror bullshite. Surely, some of those are really just going back to what they were cheap rentals. Condos being rented out is another story if they started out as condos.

9. ELC Follow Befriend (3) 3 threads 657 comments Fort Lauderdale, FL

   9   6:10am Tue 25 Sep 2012   Share   Quote   Permalink   Like   Dislike   gbenson says That being said, in our location, only about 20% of the condos are viable, the other 80% have restrictions or financial issues that prevent them from making a good rental. And what's preventing them from becoming unviable once you buy them?