TH vs. Condo HOA restrictions on renting

Condo HOAs typically have a cap on the percentage of units that are allowed to be rented at any given time. How’s it for Town Houses? Do they also have same level of restrictions?

Isn’t it really property/development specific? I don’t know that one can give a definitive answer that applies to all townhouses without really asking the question directly.

Most TH’s are more laid back about renting. Call the HOA to get definitive answer. Their numbers are usually listed on the MLS.

Sub-prime lending made Fannie Mae to come out with special rule. Check with Fannie Mae rules on Condo. It depends on lender whether they account the same rule for TH too.

I thought it’s 50% and once you’re above that Fannie/Freddie won’t underwrite. It may have changed. That was back when mortgage restrictions were toughest.

That’s why with HOA involved, one needs to be extra careful about what is and not allowed. Again, my vote for SFHs.

yes, 50% right, but that rule is not changed, but hardened.

Google “fannie mae condo owner occupancy requirements”

Reminder if you are thinking about buying and renting out a condo…

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Good point, dragon. In SF there are plenty of 2-4 unit condo buildings. On occassion, everyone wants to sell at once. Assuing the price is right, I typically like to buy the whole thing - that way since you ARE the HOA. :slight_smile: you can decide to rent whatever.

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The townhouse unit I had in San Jose voted on restricting rentals to no more than half the units. It failed by one vote.

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Wow, impressive…

I’ve ju[quote=“sfdragonboy, post:11, topic:1030, full:true”]

Wow, impressive…

I haven’t done it very often, and I’ve been very lucky. As I get older I find that one may be clever, hardworking, industrious, charismatic, etc etc … but so much in life as well is about luck.

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Worm goes to the early and persistent bird. Making mistakes and learning from them is also key to success. That is why my messaging is always to try something or think outside the box. Don’t ever listen to people who have never done it or who are defeatists.

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what happened? You have become a philosopher, suddenly?


I am thinking about buying a bamboo flute and just walking the earth in search of the truth…

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Jack Nicholson philosophy