Can You Rent Out Your Downtown Grand Rapids Condo?

Can You Rent Out Your Downtown Grand Rapids Condo?

Direct answer: For downtown Grand Rapids condo buyers, whether you can rent out your condo after you buy it comes down to one thing: what is in the association documents — and even a policy that allows renting today can be voted to change.

Each building is different

Can you rent it after you buy it in downtown Grand Rapids? Each building is different, so look at the building specifics.

Some buildings do not allow rentals at all. Others are fine with it: if you own it after you have lived in it, you can rent it. And some buildings have guidelines on it. There is no single downtown rule — it is building by building.

Why this matters if life changes

Here is where it bites. Say you buy, live there for a year or two, and then you get a relocation offer from your employer, or you move out of town for some other reason. If your building does not allow rentals, you would then be stuck — because you cannot rent it out on the open market.

That is why this question matters at purchase time, not at moving time. You need to know the rental policy before you need it.

Read the association documents

It always comes down to what is in the association documents. Steve would really go through those association documents with you to help figure out what is in there and what the rental policies are.

And remember: just because the rental policy is not in there right now does not mean the association could not vote to change it. Even though when you are buying it, it says you can rent, it could change over time.

Buying as an investment

So if you are planning on renting your condo after you have lived in it for a little while, be prepared that you might not be able to do that. And if you are looking at condos as an investment in downtown, there are specific buildings Steve would talk to you about, because they really do allow rentals and everyone in the building is comfortable with that.

But it is not always the same. Reach out and think through the process before you buy — the rental answer is in the documents, and in how stable that answer is likely to be.

Key takeaways

• Whether you can rent out a downtown Grand Rapids condo depends on the building — some do not allow rentals, some do after you have lived in it, some have guidelines.

• If you buy, live there a year or two, then relocate, a no-rental building leaves you stuck because you cannot rent on the open market.

• It always comes down to the association documents — go through them to find the rental policies.

• A rental policy can change: the association could vote to change it even if renting is allowed when you buy.

• For investment buying downtown, there are specific buildings that really do allow rentals and where everyone is comfortable with

that.

FAQ

Can I rent out my downtown Grand Rapids condo after I buy it?

It depends on the building. Some buildings do not allow rentals, some allow renting after you have lived in it, and some have guidelines — the association documents decide.

What happens if I relocate and my building does not allow rentals?

You would be stuck, because you cannot rent it out on the open market. That is why the rental policy matters at purchase time.

If renting is allowed when I buy, can it change later?

Yes. The association could vote to change the rental policy over time, even if it says you can rent when you buy.

Grand Rapids Downtown Condos FAQ Series

1. How Much Space Do You Need?

2. Association Fees

3. Renting Out a Condo — you are here

4. Downtown Parking

5. Financing Condos

6. Repositioning Your Listing

Watch me explain it

Here is an older video of me explaining the process. It might be older, but the info still rings true.

Watch on YouTube: https://www.youtube.com/watch?v=BMmZqCMh3TY

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Author: Steve Volkers, Associate Broker, Steve Volkers Group at Five Star Real Estate, Grand Rapids, MI — phone 616-717-2179, stevevolkersgroup.com