Condo buyers, how to avoid trouble is an interesting article for potential home owners to be. For the details on condo buying, continue reading below.
Too often people buy a condo, and run into a problem with the Association. And not because they are rude and obnoxious people, or do not care about others, but because they do not know.
- What is there to know?
A lot, but we will concentrate on one issue here:
It is not unusual for owners to think about offsetting some or all of their expenses by renting out their second homes (condos) when they are not using them. However, in Daytona Beach area practically every condo has some sort of rental restrictions. Majority of them are about the length of time you are allowed to rent. Many residential condos are trying to avoid turning their condominiums into a hotel. So, you can find minimum rental periods from one week to one year.
Case in point. From the listing you learn that minimum rental in a particular condo is, for example, 2 months.
Some smart buyers figure that they can rent for less as long as they do not rent more than 6 times a year and not rent more often than once in each 60-day period.
It may be right, but it may be wrong. Yes, you can’t force people to be using all 2 months of their rental period, and it happens that they leave, but if you have people coming for 2 weeks, and it is again and again, you may run into a serious problem. Check with the association, how they interpret their rules, so that you can save yourself from trouble.
But this is not the only problem that you might have. Some investors are buying only condos with the most liberal rental term of 1 week in order to maximize their rental profits. How can you go wrong here if you bought a condo with 1 week rental minimum and rent it out for one week only?
You can. For example, we have a condo, where minimum rental period is one week, however you can only rent 4 times a year. So, if the buyer was betting on 40 weeks a year to make money, with 4 weeks s/he will not even cover the expenses of maintaining the condo, leave alone the profit.
When you are buying a condo, not only get the facts, but also learn the interpretation. Best if is from those, who will be intereting it, as they are the people, who not only interpret, but also impose fines :)
Of course, there are way more troubles out there, and I will be posting about them. And one of the troubles is that the Boards of Directors change every year, and they can change the interpretation, and not only the interpretation, but the rule as well. So, when you are buying a condo, think about it as that you are buying a piece of real estate for your enjoyment, and everything else is simply a bonus.
Good luck, and if you need help, call me at 386-405-4408 and in Daytona area I will gladly represent you in the transaction.
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