The glut of unsold homes and condos is turning many owners into landlords, often to the consternation of their neighbors.
Owner-occupants in many condo complexes or neighborhoods that suddenly have a high number of renters are fearful that too many renters will result in homes falling into disrepair, overcrowded streets and driveways, rising crime and increased noise.
Also, many lenders won’t give the lowest mortgage rates to buildings with too few owner-occupants. (For example, in most cases Freddie Mac buys mortgages only for buildings with at least 60 percent owner-occupancy. Individual lenders often have more stringent requirements.)
Home owners in these communities are organizing to ensure that landlords maintain their properties and tenants behave themselves. Some developments are even requiring owners who want to rent their properties to register and capping the percentage of rentals at 10 percent to 25 percent.
Other communities are banning rentals altogether during the first year of ownership.
Source: The Wall Street Journal, Ben Casselman (09/21/2007)
