Should a Condo Board Allow 3 Month Rentals/Leases?

What's best for the developers isn't probably what's best for the owners who have bought units. Allowing short-term rentals means your building will really be like a rental building rather than a mostly owner-occupied building. How carefully will they screen these short-term renters?

Condo "boards" have zero authority in enforcing any kind of rental restrictions.

The building is almost sold out, and the Developer is the minority on the Board. The Board would present a vote to the owners to change the bylaws to include an amendment on the lease terms. If the vote is approved, the Board certainly has the authority to enforce rental term leases.

You really don't understand how CONDO "boards" work, do you?

Matt, thanks for your input, but no need to add anymore to this conversation. There are lawyers guiding this who certainly understand the process.

1 year should be the minimum. There is also a NYC law that controls some of this.

Thanks csn. Regarding 1 year minimum, what would be the rationale?

One reason for 1 year versus shorter would be to minimize move in and move out inconveniences for owners residing in the building

Except it's likely the majority of short term (less than 1 year) rentals are "furnished."
I cant see landlords moving out furniture and putting in storage for a 3 month/6 month rental as a frequent occurance.

occurence.. yikes my spelling

Anything less than one year turns the building into an SRO. Not good for real estate values.

>Condo "boards" have zero authority in enforcing any kind of rental restrictions.

Matt, your life is so nice and pleasant and you are totally in the clouds. Have you ever had a real dispute where you couldn't call on your union rules to save you?

The condo building is under no obligation to allow the use of common areas, and in particular, the elevator. Good luck with your tenants when they've got to take the stairs to get access to your "real property".

Bring bedbug rules and the building's obligations on certifying for window guards for children...
add in that the building requires indemnification from the owner for any risk that the city will come after it for unpaid hospitality / hotel taxes

Back to the question - sure, 3 month rentals are fine. But make sure that the right fees are in place - application fee, expedite application fee (you want that 3 month rental starting next month, right?), move-in fee and elevator use deposit, move-out ..., . If there's enough money for the condo, why not?

Heck, none of what I said above needs to be true at all. Just tell the owners that. We'll have people posting on streeteasy innocently asking this question and getting advice on litigation and damages from inonada despite the fact that inododo has never been involved in litigation. That level of uncertainty will scare your average penny pincher who needs to rent out his place for 3 months.

Condo "boards" have zero authority in enforcing any kind of rental restrictions.

--
far closer to being correct than incorrect.

Why, because the petty people only live in co-ops, and a condo board will just sit there saying "but, but, but, please ..."?

Splot, 875gator is correct it is an inconvenience for the residents in the building. The only time I think a term of less than 1 year would be for a renewal since the tenant is already in the apartment. The owner/landlord would also have quite a bit of extra paper work and time if you were renting multiple times during a year period.

If someone wants to get into the business of renting out their condo for short term stays, they should really consider investing in a condo-hotel. The person who rents for three months thinks they are in a hotel anyway.

I'm curious why some of the condo board members are advocating for 3 or 6 month rentals being permitted. Did they purchase their properties as an investment vehicle rather than as a residence? With all the extra paperwork and bother, why else would they want this? It's not like NYC is a summer or winter 3 month vacation spot.

Lob, sometimes people who have a second home and decamp for it (think Hamptons in the summer or Florida in the winter) want to have the ability to do a three-month furnished rental to bring in a smidge of extra income.

ali r.
DG Neary Realty

Good point.

Three or four months is also a standard rental period for visiting professors who are in town to teach for a semester and need a furnished place for themselves and sometimes their families (or for profs leaving town to teach somewhere else for a semester).

"Lob, sometimes people who have a second home and decamp for it (think Hamptons in the summer or Florida in the winter) want to have the ability to do a three-month furnished rental to bring in a smidge of extra income."

If you're so strapped that you need to go through the hassle (never mind the risk) of getting renters into your home for three months, you really can't afford the summer place in the Hamptons or Florida.

Matt, the counter to that is that homes like to be lived in. You may be less likely to have heating problems, for instance, if there is someone resident actually using the heat.

Also, if there's a leak from an upstairs neighbor (a not-uncommon occurence in NY) it's nice to have the tenant tell you that day, rather than wait a few weeks when someone "drops in" to check on the empty apartment.

ali r.

If the building really wants to curb the short term rental folks, 1 year makes sense.

Condos CAN set a minimum lease term. I was on a Board and we set a minimum term of 1 year with the advice of our lawyers (along with a fee related to the monthly rental amount). I currently live in a condo that does the same thing. All rentals must be approved by the Board, just like a sale. It was very simple to enforce at both places by only permitting entrance to the building if you were on the list of residents.

There were 2 reasons why this was set up. We wanted family buildings, not hotels. Also, banks are reluctant to give mortgages where there is a high percentage of rentals.

I don't think it's fair to say condo boards can't do anything to stop short term rentals. Boards can (and do) fine owners who violate the rules and advertise and rent short term via sites such as Airbnb.

As to the original question, I think 1 year is best. The added wear and tear on the building (amenities), security issues, and general environment make short term rentals a headache for owners/ full-time residents.

As for Muffy and Biff who summer in the Hamptons and like having a "smidge" of extra income as well as having someone check on the place, I would suggest they (or a member of their staff) go back at least once a week and check on their city home. A daily occupant as watchdog for leaks doesn't justify short term rentals. If you have the ability to summer in the Hamptons and winter in Boca Raton, great, but that shouldn't be at the expense of your neighbors back in NYC who watch your apartment change out twice a year.

>The added wear and tear on the building (amenities),

Certain amenities might not be usable by the tenants.

Matt, the counter to that is that homes like to be lived in. You may be less likely to have heating problems, for instance, if there is someone resident actually using the heat.

Also, if there's a leak from an upstairs neighbor (a not-uncommon occurence in NY) it's nice to have the tenant tell you that day, rather than wait a few weeks when someone "drops in" to check on the empty apartment.

ali r.

So why not make it 1 week instead of 3 months. Therefore you will have more eyes and ears to look out for these problems while you are away at the Hamptons. Why not not turn it into a hotel so people like front porch can make more money renting it out to transients.

NO

youre kidding, right? a smidge of extra income, so neighbors can live with your transients? who serve as leak-watchers? moronic

best for heat and plumbing is if it's not used.

transients cause leaks because they could give a shit about the building--they'll be gone in a month!

I agree with yikes.

So many fallacies here it's hard to believe... the way a condo board can re'write' the rules is to have a 66 2/3 vote to change the bylaws- that's the only way. Condo Boards cannot impose a rule that limits the inside use of someone's apartment- get real. The rule says guests can be given permission to enter- that is the way your guest comes in. They have to complete paperwork and the right of first refusal only means something if they are going to find another suitable renter for you- they simply can't refuse renters or buyers in other words... but they can rubber stamp and see to it that they have their background check.

I had a dollar for every time I read this gem: "The added wear and tear on the building (amenities), security issues, and general environment make short term rentals a headache for owners/ full-time residents."... I'd have that house in the Hamptons. What extra wear and tear? If an owner uses an amenity once a week and the person who rents uses it once a week isn't this exactly the same? More wear and tear? Seriously? Every whiny board member who says this has no idea that when an apartment that can capture 10, 15 or more thousand per month the owner cares about their place and is not about to rent it to any Tom, Dick or you know who... there is a vetting process that is the same process that any rental building goes through.There are huge security deposits and If i had that extra dollar for every crazy long term owner I had to deal with in a given NYC apartment building I'd also have a place in Monte Carlo---

Short term rentals (more than a month) can be expertly managed and is no more a liability than a one year. In fact I'd argue for the short term rental any day over a year with a tenant from hell.

The bottom line here is if you don't want to live in a frat house or hotel, buy a CO-OP.

If you don't like the "invasiveness" and restrictions of a co-op, buy a HOUSE.

You can't have your cake and eat it, too.

There is no legal impediment to condo boards acquiring and
exercising powers similar to those of coop boards

I agree with rb345