Question:
“I live in a four-unit condo complex. Three occupants are owners and the fourth is a vacation home for the owners. Now one of the owners plans to move and rent his unit. Does this hurt the value of my condo?”
Answer:
If a condo complex falls below 60% owner-occupied, financing gets more difficult for many buyers. That makes the condos harder to sell and on average lowers the value.
The good news for you is that the vacation home counts as owner-occupied. So you still have 75% owner-occupancy with the new rental.
But if another one turns into a rental, or if you decide to sell to an investor (which would make it 50% owner-occupied also), that would be a problem.
