The Negative Impact of Subleasing in Condo Buildings

Subleasing, through platforms like Airbnb and VRBO, has become increasingly prevalent in condo buildings. Travelers have found themselves drawn to the stunning high-rise views and unique living style. Add to this, exciting amenities like a pool, on-site gym, and shopping centers nearby, for most travelers, condo living takes on a whole new level of luxury. But the constant turnover of short-term stays can be challenging for long-term residents.

As a condo association board member, you have a responsibility to ensure that your community remains a safe and peaceful place to live for all residents. In this article, we’ll discuss the downside subleasing has on your condo building, whether a condo association can ban short-term rentals, and what to do if a tenant is subleasing.

“..the constant turnover of short-term stays can be challenging for long-term residents.”

The Downsides to Subleasing in Your Condo Building

Subleasing can cause some serious headaches for tenants and property owners alike. You may find yourself dealing with a decrease in available parking spaces and lots of new noise to bear with. Additionally, subleasing can result in safety and liability concerns, as subtenants may not be familiar with the building’s rules and regulations. Subleasing can also result in excessive use of common areas, leading to increased wear and tear that requires costly repairs.


Property Damage and Over-used Common Areas


The potential damage caused by subtenants can negatively impact the overall condition of the property, resulting in a decline in its market value. If the common areas are used more than normal and not maintained frequently, it can dissuade potential tenants from choosing to live in the building. Therefore, property owners should closely monitor subleasing activities and establish clear guidelines to mitigate any potential risks to their investment.

Can Condo Associations Ban Subleasing?

The good news for condo association boards is that they usually have the legal authority to regulate short-term rentals in the building. COAs can take several steps to enforce rental restrictions, including amending the CC&Rs, issuing fines or other penalties, and taking legal action if necessary. However, the specific steps available to condo association will depend on the governing documents and state laws.

What to Do if a Tenant is Subleasing?

If you discover that a tenant is subleasing their unit in violation of the association rules, there are several steps that you can take:


  • Contact the Tenant

First, communicate clearly with the tenant about the community’s expectations and the consequences of violating the rules.


  • Issue a Fine

If the tenant continues to sublease, you may need to escalate the issue by issuing fines or other penalties like taking legal action if necessary.


  • Amend the CC&Rs

Amending the Covenants, Conditions, and Restrictions to explicitly and clearly prohibit short-term rentals. Preventing subleasing from happening is the best approach.

By implementing an effective subleasing policy and addressing potential issues proactively, condo boards can help to foster a safe, tranquil, and prosperous living environment for all residents. Staying informed of applicable laws and regulations as well as having the right approaches in place are key to tackling any issues associated with subleases. Take action today to ensure the long-term success of your community. If you need support putting together a solution for subleasing for your condo association, contact us today to receive a proposal. We’re here to help you keep your community running smoothly and create a prosperous environment for everyone.