HOA & rental rules

Verify rental caps, minimum lease terms, tenant approval procedures, and registration fees during due diligence — some luxury buildings prohibit short-term rentals entirely. A unit you cannot legally lease fails DSCR underwriting regardless of projected rent.

Reserve underfunding and insurance spikes drive assessments that crush pro forma returns on aging towers. New buildings are not immune — developer-controlled boards may defer reserve funding until warranty periods expire.

Request written confirmation of an available rental slot if the building has a cap. Wait lists in Boca and Delray high-rises have blocked leasing for 12–24 months after investor purchase.

Some buildings require board or committee approval of tenants — add 2–4 weeks to lease-up timelines. Factor approval risk into seasonal marketing plans when targeting winter executive rentals.

Annual landlord registration and re-inspection fees recur every lease cycle. Buildings with concierge-heavy amenities pass higher fees to investors — include them in trailing-twelve-month expense analysis.