condo declaration states "no rentals permitted". does this mean the unit must be occupied by the unit owner?

Many condo associations prohibit or limit the ability of condo unit owners to rent the unit to tenants.  The primary reason associations place restrictions on rental is to preserve the value of the development and the surrounding properties.  The reasoning being, that tenants have less of an incentive to maintain the property as compared to owners, who must maintain the property in good condition to ensure that it will appreciate (or as is often the case in the current market, depreciate as little as possible) for when they ultimately sell the property.  A prohibition on renting a condominium unit is just that, a prohibition.  The prohibition alone does not dictate what a condo owners must do in the affirmative.  In other words, a condo unit owner could elect to move out of his/her condo unit and leave it vacant even if there is a restriction against renting. Another thing to keep in mind is that just because a rental payment isn't exchanged or a written lease isn't signed by the parties, does not mean that the property isn't being rented for purposes of the prohibition.  Most residential mortgage documents include a representation by the mortgagor that the property is intended for use as a primary residence within 60 days.  Further, to maintain a homestead exemption on the unit for property tax purposes, the owner is supposed to occupy the property as his/her principal residence.  This is general advice not commencing the attorney client relationship, nor is it protected under attorney client privilege.  Randy Green is an attorney at Meyer Capel, a Professional Corporation E-mail: rgreen@meyercapel.com Phone: (217)352-1800