Re: rental policy in these economic times
From: Sharon Villines (
Date: Mon, 31 Jan 2011 17:22:44 -0800 (PST)
Our policy is posted on our website:

We allow 3 years for leasing and the homeowner can request an extension. We 
have only had one instance of a leasing household not participating in the 
community. Our other leasers, 8 in 10 years, have been fully involved and 
positive additions to the community. Two then purchased units, two moved to 
other cohousing communities, two returned home out of the area, two are still 

Banks do look at the number of leased units when doing mortgages. They have 
maximums because they believe that a condominium that can't sell units may be 
badly managed or that if it has lots of investor owners, they will allow the 
property to deteriorate because they get depreciation tax credits anyway. Why 
spend the money? Take the loss. 

I just had to have our treasurer sign a statement about how many units were 
leased in order to do a refinance.

However, If you designate some units as rentals, an intentional act, the bank 
might look at it differently. Their concern is the stability of the real estate.

We currently have two units rented because the owners were unable to sell — one 
because of bad financial decisions, in my opinion, and the other because of the 
bad economy. Both are lovely units. Both are now occupied by people we would 
love to see stay forever.

Sharon Villines
Takoma Village Cohousing, Washington DC

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