Condo Media - September 2016 - 44
The Region
MASSACHUSETTS
Rental Restrictions
Pros, Cons, and Considerations
[by Howard S. Goldman, Esq. and Rebecca A. Erlichman, Esq.]
The issue of how to handle condominium unit rentals is one that remains relevant to all condominium
associations. In general, associations
have broad latitude to create rules and
regulations intended to better the community. Courts in Massachusetts have
long recognized that associations have
the power to change their documents,
and if the required percentage of unit
owners votes to amend the bylaws, the
association can impose restrictions on
rentals or even prohibit them altogether
regardless of the adverse impact on
owners who purchased their units with
the intent to rent them out.
Most condominiums allow for units
to be rented, but associations should be
wary of allowing unrestricted rentals.
44
CONDOMEDIA
Conventional wisdom suggests that tenants are less considerate neighbors than
owners because they are not financially
invested in the property. While not all
tenants are poorly behaved, there are
enough instances of "bad tenants" to
warrant associations wanting to ban
entirely or set reasonable limits on the
ability of owners to rent out units.
Condominiums should also be wary
of having too many owners who view
the condominium unit solely as a
moneymaking asset. Absentee owners
will not be as invested in the building
and are more likely to reject increases
in maintenance expenditures or common area fees needed for large capital
projects in favor of maximizing their
own profits.
COMMON SENSE
RENTAL RESTRICTIONS
In associations that allow rentals, it is
important to regulate the process; for
example, associations should require
that all unit owners provide a copy of the
lease and names of the tenants to the
condominium association, and also implement a move-in and move-out fee. Associations should also consider limiting
the number or percentage of units that
can be rented, establishing a minimum
lease term-such as one year-to prevent
unit owners from renting out their units
through Airbnb or other popular homesharing websites, and requiring that each
lease should incorporate the terms and
conditions of the condominium bylaws
and rules and regulations.
Condo Media - September 2016
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