Can You Rent a Condo? Key Rules for Tenants and Owners

A condominium is a private residential unit within a larger building or community. While similar to apartments, condos are distinct because each unit is individually owned. This ownership structure means that while a condo can be rented, the process involves unique considerations for both tenants and owners, particularly due to the influence of a homeowners association (HOA).

Renting a Condo as a Tenant: Expectations and Responsibilities

Renting a condo involves a formal lease agreement, similar to an apartment. A key difference is the condo’s individual ownership and its integration within a community managed by an HOA. Tenants in a condo are bound by the rules and regulations established by the HOA, even though their primary contractual relationship is with the unit owner.

HOA rules impact a tenant’s daily life, covering aspects like pet policies, noise restrictions, and parking regulations. An HOA might limit pet size or number, or enforce quiet hours. Specific procedures for move-in and move-out, including elevator reservations or fees, are often dictated by the association.

Shared amenities, such as swimming pools, fitness centers, or clubhouses, are common. Tenants typically have access to these facilities. The HOA governs the use of common areas, and tenants are expected to adhere to established guidelines for their use. These rules ensure the upkeep of shared spaces for all residents.

Maintenance and repair responsibilities are divided among the tenant, unit owner, and HOA. Tenants are responsible for minor upkeep, such as keeping the unit clean, disposing of garbage, and fixing damage they cause. The unit owner is responsible for major in-unit repairs and ensuring the property meets habitability standards, including structural soundness and functioning utilities. The HOA manages the maintenance and repair of common elements and shared infrastructure.

Renting Out Your Condo as an Owner: Process and Compliance

Renting out a condo unit involves navigating landlord-tenant laws and specific HOA regulations. The HOA’s governing documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) and bylaws, contain information regarding rental policies. Understanding these documents is a primary step before listing your property.

HOAs implement rental restrictions, which can include rental caps limiting the percentage of units that can be rented (often 10% to 25%). Minimum lease durations (often six to twelve months) are also common to discourage short-term rentals. Some HOAs may even require owners to reside in their unit for a period, such as one year, before being eligible to rent it out.

Tenant screening often involves the HOA. Some associations require board approval of prospective tenants or mandate background checks. Owners may need to provide tenant contact information to the HOA. Some associations charge fees, typically $50 to $200, for processing rental applications or move-in/move-out procedures. Non-compliance can result in penalties for the owner, such as fines.

As the unit owner, you must ensure your tenant complies with all HOA rules and regulations. Incorporate clauses into your lease agreement stating the tenant’s obligation to abide by the HOA’s governing documents. Provide the tenant with a copy of these HOA documents and outline consequences for any rule violations.

Financial considerations for condo owners include monthly HOA fees, which can range from a few hundred to over a thousand dollars. These fees contribute to the maintenance of common areas and amenities, and owners remain responsible for them regardless of rental status. Rental income is taxable, but owners can deduct various expenses, including property taxes, mortgage interest, maintenance costs, and property management fees. Vacancies impact cash flow, as owners must continue to cover mortgage payments and HOA fees even when the unit is unoccupied.