What is a condo rental cap?

What is a condo rental cap? How can it affect your ownership and market value of a condominium? findwell agent Matt Martel answers in this installment of Ask an Agent.

Q: What is a condo rental cap?

A: Some condominiums will have a rental cap which limits the number of renters allowed in the condominium.

A rental cap can cut both ways. If you have plans to live in the unit and then perhaps rent it after a few years, a rental cap may mean that you can’t do that if you want to.

On the other hand, rental caps can limit the number of renters in a condominium, which may help your resale value. If you have more than 50% renters in a condominium, then a lot of lenders will not lend on that complex and it decreases the value of your condominium.