Newbie Question About Lease Option
I bought a condo a year ago in Palatine IL. After a few months, my tenant moved out, and as I was looking for a new one, association changed the rules saying that new renters would no longer be allowed. Now I am stuck paying the mortgage on an empty condo, trying to unload it. Someone suggested I do a Lease Option to unload the condo quicker. Does anyone know if this would circumvent the no rent rules?
I would really appreciate any suggestions.
Thanks
I don't know if this helps, but...
If you give them a rent credit, they have interest in the property, and in fact are a partial owner in the legal sence. So, they would have to take you to court over the matter, and you could argue this point. So, I think that it is legit, but ask your attorney.
Sam
Why don't you try talking to some owners and seeing if that rule can be changed.
If it's biting you, it will bite others. Condos should be able to live with one year leases (two years if they're real tightly puckered). Maybe the provision could include that you can't replace a tenant that leaves before the end of their term until the day when their term would naturally have been up.
The point is, a political process brought you to this point, and a political process might convince the residents that someone has gone too far in making this amendment. Take a few residents out to dinner and find out how firm they are on the subject, and why.
Have you fly-specked everything that was done in forging the amendment to make sure every "i" was dotted and "t" crossed, both procedurally and substantively, and that there's no statutory prohibition on their rental prohibition? You may have grounds to sue and undo it!
I doubt that I will be able to get the rules changed back. When the association changed them, it required over 75% approval by owners (they held a vote). I believe they got about 80% due to the fact that most units in the building are owner occupied. A large number of the owners are older people, many of them have lived in the building since it was built 20 years ago.
As far as all the procedural "i"s and "t"s, i haven't had a lawyer look at it, but the management company had their lawyers handle the change to the rules, as well as filing the change to the bylaws with the state, so it looks like they covered themselves there. I've gone over the bylawas, and they definitely have a legal right to change them the way they did as long as they have the votes (which they did).
I've pretty much given up on any chance of the rules changing back (especially since in this general area these kinds of changes are starting to happen more and more often). All I am trying to do now is sell it, or at least find some way to cover my mortgage. From what i've read on this forum so far, Lease Option seems to be a good way to do both, but I am still not sure about all the details.
It should because it is the intent to purchase....check with association
sell on contract for deed????
Sorry guys, I am a real newbie at this, please bear with me.
What is a contract for deed, and how does it work?
Thanks
DaveREI hit it for you. CFD is your answer.
L/O is a Lease which is renting. No equity for the tenant so that argument is void.
Thanks a lot for your suggestions. Can someone please give me a brief overview of what a CFD is and how it works?