Will a high number of rented units in your condo association make it difficult for you to sell? Nope. And here’s why…
There is a common myth that a high number of rented units in a condo building will make it harder for a unit owner to sell. This isn’t true as long as the buyer intends the occupy the unit. Condo sellers can confidently market their unit to prospective owner-occupants even if the existing ratio of rentals in the building is high. If the buyer is an investor, however, an existing ratio of more than 50% is likely to halt the sale.
But if you are a condo owner who wants to purchase an additional unit in your OWN building for investment purposes, you may be creating trouble for your neighbors who want to sell. That’s because if more than 10% of the units are owned by a single investor, it will be difficult for anyone to purchase a unit, whether they intend to live in it or not, without putting down a large cash payment.
Lauren Peddinghaus is the CEO and Co-Founder of CondoGrade. She is also the owner of Haus Financial Services, LLC and ChicagoCondoResource.com. Lauren has been solving condo financial problems for over 10 years. It’s her mission to educate condo owners about the true financial responsibilities of condo ownership.