A lot of buyers want a condo they can use part of the year and rent the rest. That can work well, but only in the right building. Rental rules vary widely, and the building's documents are what count.
Where the rules come from
Rentals can be limited by:
- The association's declaration and rules. Minimum lease terms, how often you can lease, approval requirements, and fees.
- Local rules. Cities and the county can regulate short-term rentals.
- State licensing and taxes. Short-term rentals may need a state license and must collect tourist and sales taxes.
Common restrictions
- Minimum lease terms. Many luxury buildings require leases of several months or more, and some only allow one or two leases a year.
- Waiting periods. Some buildings don't allow new owners to lease for the first year or two.
- Approval. Tenants may need association approval and background checks.
- Short-term rentals. Many buildings prohibit them entirely.
One protection to know: under Florida law, a condo amendment that bans rentals, changes the lease term, or limits how often you can lease applies only to owners who agreed to it and to people who buy after it takes effect. So the rules in place when you buy matter, and so does any amendment the owners are voting on.
Long-term rentals
A long-term tenant can be steadier and less work. Understand the building's process and fees, and budget for vacancy and management.
Second homes with some rental use
If you'll use the condo yourself for part of the year, make sure the building's minimum lease term fits your schedule. And ask your lender how they view the purchase, since second-home and investment loans differ.
Before you buy
Get the declaration, rules and any amendments, and confirm the rental rules in writing. Don't rely on the listing or an old rental ad. Our condo building reports note rental policies for luxury towers in West Palm Beach.
— Joel Poulin, Broker Associate | The Corcoran Group · (561) 556-3668