Talk of The Villages Florida - View Single Post - Rentals not allowed in newer areas?
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Old 03-12-2022, 03:41 PM
jmaccallum jmaccallum is offline
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Quote:
Originally Posted by Speedie View Post
1. Yes it is true
2 as of last fall restrictions were put in place on specific neighborhoods
3 i asked the sales team and was told that once a neighborhood has exceeded a number of new owners that are immediately leasing, then the developer triggers this clause. Intent to maintain TV as a retirement home community vs a transient rental community

The restriction is for 1 year from purchase date. Much like the similar 1 year resale restriction to minimize house flipping
It also protects the ability to get a mortgage on a home. As the % of rentals increases in a community, mortgage companies are less likely to lend. They worry they will lose their 80% Loan- to- Value advantage that protects them in case of default. Rentals properties tend to decrease all property values.

Some buyers in TV do pay cash, but many get a mortgage, whether to maintain cash reserves or investment, or they don’t have the cash but do have qualifying retirement income.