Renters and Property Values

Be cautious about believing what this Board tells you…

Lenders are required to charge higher rates for loans or deny a loan for homes in associations with renter-owner ratios that exceed a certain percentage. But that does not mean renters affect property values.

The value of homes is based on location, sales/foreclosures in a few mile radius, size, amount of crime, school district, property taxes, available jobs, commuting distance to available jobs and many, many other things. What matters to one buyer may or may not matter to another. Of all the variables that effect home values, renters is not one.

Our Association should view renters as owners-in-training who aren’t ready to purchase their homes yet. Welcome renters and hope they will eventually buy a home in our community.

Advertisements

2 thoughts on “Renters and Property Values

  1. It is true though, that if a buyer cannot get a mortgage he/she will be unable to buy into the community. While this will not directly effect the value of my home per se, I agree that the renter limit should be kept below 50%. This is standard for our condos (at least in our area), as it is the cut-off at which a FHA loan is generally granted. Or else the owners could end up in the un-enviable situation of being unable to sell our homes, because the prospective buyer cannot get a loan. This is an issue I myself have mentioned to the Board over a year ago-that we must create and enforce renter limits, however un-popular this may be.

    • Thanks, for sharing your thoughts, Nicole. What is most important to me is that all points of view are considered not whether or not we all agree. Based on my experiences with this Board I sincerely hope they are not allowed to adopt any more rules, regulations or policies without oversight and input from our community – in compliance with the law, governing documents and best practices.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s