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Does your city or state have any laws about " not owner occupied" AirBnB type housing ?
Some have had to enact such laws to stop these "corporate" owned houses.
We cannot assume anything here. For example, in my HOA, we have a corporate-owned SFH that is not rented or used as a AirB&B. The company lets its employees who relocate to our area to temporarily live in the home for a short time while they search for a home to purchase locally. I am on the HOA board for the community and we never have had to deal with the home being used as such. I don't know if our county/city has any restrictions on the books either. Our HOA doesn't currently restrict rentals in our neighborhood.
I agree with Rabrrita. There is no argument to be made about it being corporate-owned. However, the "no businesses" clause might prevent short-term vacation rentals. A 30 days lease/stay is often the cutoff between a temporary lodging business and taking up residence.
Many HOAs in my area (Tampa) have covenants that require the home to be owner-occupied for the first 1-2 years. This effectively shuts out corporate or private owners who want to rent.
It’s effective at doing just that, as the properties that have such a requirement in their CC&Rs don’t have issues with rental properties for the most part. It doesn’t prevent an owner from renting, it prevents buyers from purchasing a home as an investment property.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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In our area there are corporate-owned homes, but they are used to house new executive employees at companies like Microsoft and Amazon, while they get settled in and find a place to buy. It's not at all problematic like the AirBnB type of short term rentals. This may be the situation you have there, if you have major employers nearby and are in a desirable neighborhood.
From the rounds of replies by OP, 3 options: long term rental, a BRB, and a flipped house. If it’s in good condition already, flipping is not likely,
Sounds easier to discuss future owner’s intent with the seller since OP discusses how close knit community is with everyone.
Just got word that our neighbor is selling to a corporation. All the other 100 homes in our neighborhood are owned by individuals, couples and family trusts.
Did some digging and the person behind the corporation is a real estate agent who specializes in flipping and setting up air bnb's.
Should we be concerned about anything here? What could go wrong? We aren't an HOA but we do have covenants.
You need to get a copy of the Covenants and Restrictions that apply to your development. They should spell out what can and can't be done. You may very well belong to a HOA which consists of all the property owners in the development. Just because you don't have meetings or don't know about it, doesn't mean that it doesn't exist.
You need to get a copy of the Covenants and Restrictions that apply to your development. They should spell out what can and can't be done. You may very well belong to a HOA which consists of all the property owners in the development. Just because you don't have meetings or don't know about it, doesn't mean that it doesn't exist.
I'm president of the neighborhood club, there's no HOA. I'm the one who is the contact for realtors and mortgage companies and the city. I know that this is the first corporation to buy a home because I see the list of legal owners every time we do a mailing. It's a volunteer "club" with voluntary dues to pay our small landscaping costs, that's it.
The paralegal just confirmed that they do have a copy of the covenants. He said he would ask the title company what they were going to do with the property but I doubt we'll find out.
From the listing photos, it looks like there is some remodeling going on so if it's a flip, we'd all be happy with that.
Just wondering if we could get them to sign a document at closing confirming they agree to the covenants and would not use home for business purposes.
I would be interested to find out what are the issues with a corporate landlord assuming it's a long term rental.
Unless your city pass ordinance on "anti-corporate rental", I'm afraid there's nothing you can do. From what I read, this will be limited to corporations that has X unit in your city. X being greater than 100.
One danger is the company will not keep up with the maintenance & repairs, but that's no different than say an individual landlord or homeowner.
The media is hyperventilating about a corporation owns the entire neighborhood, thereby can dictate rent as they own the market, but that apparently is not your situation.
I'm president of the neighborhood club, there's no HOA. I'm the one who is the contact for realtors and mortgage companies and the city. I know that this is the first corporation to buy a home because I see the list of legal owners every time we do a mailing. It's a volunteer "club" with voluntary dues to pay our small landscaping costs, that's it.
The paralegal just confirmed that they do have a copy of the covenants. He said he would ask the title company what they were going to do with the property but I doubt we'll find out.
From the listing photos, it looks like there is some remodeling going on so if it's a flip, we'd all be happy with that.
Just wondering if we could get them to sign a document at closing confirming they agree to the covenants and would not use home for business purposes.
If the covenants run with the property, then the owners have no say in whether they "agree" with the covenants or not. The covenants apply whether an individual owner likes it or not.
OP, are your community covenants registered at either your county or city?
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