Home › Forums › Real Estate › What are other condo associations doing, if anything, to limit renting to comply with mortgage financing rules (such as those under FHA)? › Reply To: What are other condo associations doing, if anything, to limit renting to comply with mortgage financing rules (such as those under FHA)?
A private home or condo rental agreement (versus an apartment building or a condo specifically purchased to rent) can stipulate that the tenant must vacate (with reasonable notice, typically 60 days) if the owner will be recoccupying. Automatic right of first refusal does not apply if selling, and the new owner is not obligated to continue renting to a tenant if they intend to live there. The owner just needs to make sure it is properly spelled-out in the agreement. A friend of mine just prevailed in a case where he was out of the country for a couple of years, rented out his place, the tenant did not want to leave and sued him to stay. Court decided that since it was a private residence and the conditions were adequately and properly specified, tenant had no standing to contest.
As I said, this does not apply to investment properties, which are subject the usual DC rental housing laws; but if you have to rent-out your place for a while, just have your lawyer draw up a rental agreement (do NOT call it a lease). What my friend did was he had an initial 1 year term with automatic 60 extensions until he returned, up to the maximum time his condo allowed for a continuous rental (I think his was 3 years). If he didn’t return within the time limit, tenant had to vacate regardless. Tenant could leave after the first year with 1 month’s notice.