We are about to purchase a condo in Minneapolis. One of the covenants of the property is that you are not allowed to rent out your condo/apt.The condo association has cleared the way for our holding company to purchase the property.Q. If our company purchases and owns the property how will the rule of owner occupancy work?
State/Country relating to question: Minnesota
Dear JACUSTOMER - Obviously the HOA rules didn't contemplate this situation as in so many cases where rules are made by persons who probably have not though through the various possibilities. My suggestion would be to get something in writing from the condo association stating that the rental rule does not apply in this case so long as the occupants are also the owners or principals of the holding company. This would be the classic type of rule that could be used by some disgruntled board member in the future that gets into a dispute with you over the color of your patio furniture or some other stupid reason and uses this rule to harass you. From a legal standpoint I really don't think you have a problem if there is no rental contract or agreement but I don't trust condo associations and so many of them just love to enforce rules at their convenience and not for the intended purpose. If you have something in writing from the board then that would stop any type of frivolous complaint in the future.
25 years experience
Okay, yes point taken and I agree.Even though they have only stated that a company may own the place it hasn't outlined who can reside within. Can you suggest how we could word our letter to them? Should we put to them for example that the principle owners/managers/directors/employees of record have the ability (use/rent/live/reside) in it.We travel extensively and still have to pay association fees (of course) ... we could be away for 4-6 months or longer. Therefore we would want to capitalize on making revenue to pay for association fees etc.Many thanks.
I'm not permitted to prepare legal documents from this website but a letter stating that the "rental rule" does not apply to Unit # (your #) so long as the unit is occupied by owners or principals of the holding company or whoever. Then you could charge internally whoever is using the unit but it wouldn't be an actual "rental" since it would simply be a charge within your company to cover the expenses. If there are going to be various persons using the unit I would definitely have something in writing to this effect as I can just see the local "enforcer" of the condo rules causing a problem. The letter needs to be signed by someone with the authority of the board or their attorney.
It certain sounds like you've had dealings with difficult condo "type" associations and are familiar with them. Many thanks for your advice.SincerelyColin
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