What is a rental cap? – David Reecher

A rental cap is a limit on the number of renters allowed in a condo building or development (also known as owner-occupancy rates). If you own a property with a rental cap and the rental cap has been met, you must add your name to the HOA waiting list before you can rent out your unit. If you’re buying a property with a rental cap, note that some mortgage loans have rental cap requirements, in which purchasing a property with a high percentage of renters may limit the number of mortgage loans available to you. Carefully review all HOA documentation and consult with your lender and real estate agent before purchasing a property with a rental cap

Leave a Reply

Your email address will not be published. Required fields are marked *