Should I convert my existing rental property into a condominium?
Purchasing a condominium has become an attractive alternative for many home buyers who have been priced out of traditional single-family housing. To meet the needs of buyers, developers often seek to convert existing rental properties into condominiums.
Developers should be aware that laws governing condominium conversions include stringent consumer protections. For example, the conversion process typically requires building enclosure and water penetration resistance testing, which can be intrusive and expensive. Additional, current occupants must receive notice of the conversion, have the opportunity to review condominium association documents, and be given the option to purchase their unit. If they decline, developers might be required to pay tenant relocation assistance fees.
Each property and project come with unique considerations. For tailored advice on whether a condominium conversion is right for you, contact Lukins & Annis.
