As a result of the housing market downturn, and with many owners owing more on their mortgages than their properties are currently worth, rentals are becoming very common. In a sort of Catch-22, the increase in rentals is making it difficult for other owners to sell their units.
Many banks are requiring higher owner occupancy percentages for new buyers. Too many rentals in an association may mean that a prospective buyer cannot obtain a mortgage. Many associations are putting caps on the number of allowable rentals in order to protect owners' ability to sell.
An amendment to the association's bylaws is required to put a rental restriction in place, which means at least 2/3 of the owners must vote in favor of the change. If your association is concerned about increasing rentals, the time to act is now. Consult a knowledgeable condo law attorney for help with an amendment.