Home | Newsletter | Advertise
loading...

UrbanTurf Reader Asks: How Do Rental Caps Affect Condo Sales?

  • January 24th

by UrbanTurf Staff

Today, we are bringing back our old series UrbanTurf Reader Asks where we answer a question from one of our readers. In this installment, a reader wonders how a rental cap might affect condo sales in her building. 

Question: My condo building (I'm the board president) caps the number of rentals in the building at a one-third of the units. Every year at our annual meeting, the absentee owners start agitating about lifting/removing the cap. I always tell them if they want to do that, they can do the legwork to get a bylaw amendment passed. What's the general consensus about how rental caps affect condo sales? I've seen both sides (it hinders sales and helps sales) and I'm just wondering if there is any sort of general thinking on it.

Answer: Most lenders need 51% owner occupancy in a building. Anything below 51% will be a problem for warrantability. This applies for primary purchases of 10% down and less. So, a building can increase to 49% renters without issue. If they go above that, they will limit people getting a loan that are investors or second homes or low down payment primary residents.

If you would like to submit a question for UrbanTurf Reader Asks, send an email to editor@urbanturf.com.

See other articles related to: condo rental caps, ut reader asks

This article originally published at https://dc.urbanturf.com/articles/blog/urbanturf_reader_asks_how_do_rental_caps_affect_condo_sales/20536.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse