Does a Rental Cap Matter? A 1-Bedroom Loft at 2510 N. Wayne in Lincoln Park
This 1-bedroom top floor loft in the Wheelworks Lofts at 2510 N. Wayne in Lincoln Park came on the market in April 2015.
The Wheelworks is a former Schwinn factory.
This loft has exposed brick and 16-foot timber ceilings
with a skylight.
This is 2-units that have been combined into one larger unit so it is a rare 1-bedroom with 2 bathrooms.
It also has 2 wood-burning fireplaces.
The kitchen has white cabinets and some appliances are stainless steel.
It has central air, washer/dryer in the unit and deeded, gated secured parking which is included in the price.
The listing says this building has no rental cap but a great owner occupancy which makes this home a “great investment.”
This unit has been reduced $25,000 since April 2015.
If you’re an owner occupier, is it good or bad that there isn’t a rental cap in place?
Thomas Youngblood at @Properties has the listing. See the pictures here.
Or see it in person at the Open House on Sunday, Oct 4 from 12-2:00 pm
Unit #305: 1 bedroom, 2 bath, 1100 square feet
- Sold in January 1994 for $217,500
- Bank owned in October 1998
- Sold in November 1998 for $175,000
- Sold in June 2005 for $275,500 (included the parking)
- Originally listed in April 2015 for $324,900
- Reduced
- Currently listed at $299,900 (includes the parking)
- Assessments of $324 a month (includes water, snow removal, exterior maintenance, scavenger)
- Taxes of $3622
- Central Air
- Washer/dryer in the unit
- 2 wood burning fireplaces
- Bedroom: 13×13
That was once two units per the plans? Wow, Those would have been some really small units.
This place is fantastic. Sometimes I think about moving back to the north side and this is exactly what I would want. The bathrooms could use updating, but I think I could bring them up to my standards with $20,000.
I would prefer to live in a place with a rental cap, but that can be difficult to find.
Hope the building has a good roof. Penthouses are great but the first units to be damaged when the roof leaks.
In my experience, buildings with rental restrictions/100% owner occupied are less appealing to potential buyers. Historically, and especially with the last downturn in the economy, people would like to know they have an option of renting out the unit if necessary. I know of far too many example where condo owners had to foreclose on their units since they were laid off/reassigned at work/etc., could not resell their unit and could not rent it out.
A rental cap doesn’t make a difference. It is beneficial. If the house borrower decides to move or can’t sell the place then they can rent it out for a kingly sum.
“That was once two units per the plans? Wow, Those would have been some really small units.”
Studios aren’t big.
Definitely prefer a rental cap to be in place, especially if self-managed. Most condo buildings have more than enough disengaged owners and a bunch of renters just exacerbates the problem. 80% owner-occupied is probably sufficient.
Newbie here… Can someone tell me how rental caps work? If a building is 80% occupied, that means there is a 20% rent cap? Help me out…
Caps come in several forms, they can contain elements that are time-based, board approval-based and/or number of concurrent allowed rental units based. For example if you have a twenty unit building and you wanted to ensure 80% owner-occupancy then cap it at four concurrent rentals max. I’ve seen caps that say nobody can rent for more than three years in a row and even nobody rents without board approval with no other provisions specified, which is way too arbitrary since in theory it could lead to no rentals or all rentals, and a buyer ought to know if they are investing a building that is biased toward owner occupancy or a free for all.
There are also caps where if you bought before the cap was instituted you can rent out your unit however if you bought after you can’t and various permutations of that (which seems borderline illegal to me).
We have been thrust into the “sharing economy”, like it, or not.
If you’re looking to buy, the presence of a *very strict* rental cap, backed with tremendous HOA fines, is probably a good idea. Otherwise, what’s stopping the rest of your building from becoming an AirBnB hive of transient activity…?
building I used to live in had a ban on airbnb’s but not rentals
My building requires a year long lease, so airbnb is out.
I wish we could get more of the renters out, but the declarations were written by the developer, so we’re stuck. There’s no way to get 75% of residents to agree with a rental cap.
Why all of the hate towards renters? If you need to make a mortgage payment then you are not a home owner but a home renter too. You don’t “own” shit. If you pay 100% cash or in thirty years once your house or condo is paid off then you own that place.
In my building, renters tend to be younger, louder, and messier than owners.
Too many investors and renters in a building means a lot of maintenance gets skipped or done cheaper than with long term owners (though not always of course, some very long term owners are not concerned about resale and want lower costs above all) and the more transient residents don’t take as much care of the unit and common spaces since it isn’t “theirs.” And of course, too many renters means more difficult financing. It can also causes problems, depending on building policy, since common repairs often have to go through two levels, the renter has to call the landlord who has to call management in many buildings.
“You don’t “own” shit. If you pay 100% cash or in thirty years once your house or condo is paid off then you own that place.”
Do you “rent” or “own”?
“Do you “rent” or “own”?”
So HD isn’t really a lawyer? He’s just renting a degree??
anon (tfo) on September 30th, 2015 at 1:25 pm
“Do you “rent” or “own”?”
So HD isn’t really a lawyer? He’s just renting a degree??
Chuk, I make a mortgage payment. So unlike some delusional people who believe they are “home owners”, I still see reality for what it is. I am still renting and this case I am renting money from the bank.
Your question about someone renting a law degree is so asinine it is not even worth a reply.
I make a decent income. Enough to live comfortably. But unlike some of you, I do not look down on renters, “low income” people or someone who is on section 8. Because I know that God forbid, I am one serious sickness or a life altering calamity away from joining them.
Well given our property tax system, you never really “own” a home even if you are mortgage free since government can confiscate for nonpayment of property taxes.
” I am still renting and this case I am renting money from the bank.”
Yes, renting *money* from the bank.
And “renting” dirt from the City.
And *owning* the improvements you bought with your rented money.
“If you pay 100% cash or in thirty years once your house or condo is paid off then you own that place.”
Not true. You’ll always be making property tax payments – so you’ll always be leasing from Uncle Sam!
Renting ~~ you cant paint etc w/o permission
owning~ you can paint etc
no matter that you are making mortgage payments
“Because I know that God forbid, I am one serious sickness or a life altering calamity away from joining them.”
So, you look down on renters too then.
Nice unit but too small of a loft for my taste. I think rental caps are necessary to some degree, but there should be some exceptions to the rule. I think it’s wrong that someone should have to sell their place (potentially at a loss) because they lost their job and the association won’t let them rent it out.
“Nice unit but too small of a loft for my taste. I think rental caps are necessary to some degree, but there should be some exceptions to the rule. I think it’s wrong that someone should have to sell their place (potentially at a loss) because they lost their job and the association won’t let them rent it out.”
Without rental caps, it’s hard to get financing in the building. Well run buildings have rental caps.
If you lose your job and you have absolutely nothing saved, do you really think renting out your condo while you go live with the parents is the smart thing to do? Maybe you shouldn’t be buying the condo in the first place. If money is that tight, just rent.
Sold this month for $289,900