Condo buyers who are seeking mortgages are facing some stringent requirements from banks. Two areas that banks are reviewing are the number of rentals in the association (see post from 4/3/12 on this topic) and the number of owners delinquent on their assessments.
We are finding that associations facing delinquency rates higher than 15% may encounter problems when a prospective buyer applies for a mortgage. Units in associations showing owner occupancy rates of less than 75% may also prove difficult to finance.
The bottom line? To improve your odds of selling, aim to get delinquencies down below 15%, and cap rentals at 25% or less.