Let's start with rental restriction regulations, commonly referred to as rental caps. There may be cases where the homeowners association sets a limit on the percentage of units in the building that can be rented out, and some places may require a minimum rental period of over one year. In the past, many people made decisions based solely on the listing price and location without paying much attention to these clauses, but the situation has changed now.

The reason is tied to loan assessments. Buildings with an excessively high percentage of rental (investor-owned) units are classified as non-warrantable condos according to Fannie Mae standards, making conventional loans difficult to obtain, leaving only higher-interest loans available (Fannie Mae Selling Guide). Having rental restriction regulations is not necessarily a bad thing; it can actually be a measure by the homeowners association to maintain warrantable status.

There are three main items to check in order. First is the current rental unit percentage of the entire building, second is the rental cap specified in the homeowners association regulations, and third is the minimum rental period requirement. If you plan to generate income through renting, it is advisable to directly request these three items in writing from the homeowners association or management company before signing the purchase agreement.

The Rochester condo market itself has shown clear trends recently. As of 2026, the condo price is around $234,950, and the median home price in Rochester has risen to $230,000, up 17.95% from the previous year. Realtor.com has ranked Rochester as the second hottest housing market for 2026, with a median listing price of $256,900, which is significantly lower than the national median price of about $415,000.

In the past, Rochester was often viewed merely as an affordable market, but it has now transformed into a market characterized by low inventory and fast transaction speeds. Looking at rental demand, the median rent has increased by $150 to $1,400 per month, supported steadily by student demand from the University of Rochester and the Rochester Institute of Technology (RIT).

While New York State does not yet have a statewide law mandating full reserve fund accumulation or structural inspections like Florida, it is worth noting that related bills (A8945/S7600) are pending in the state legislature. It is safer to check what standards the homeowners association has applied, especially for older buildings.

To summarize the items to check before signing a lease:

• Rental cap and minimum rental period according to the homeowners association regulations
• Current rental unit percentage of the building
• Financial statements and reserve fund accumulation rate for the past 2-3 years
• Any planned special assessments
• History of lawsuits or disputes in the homeowners association meeting minutes

If you are moving to Rochester from another state, it is important to check how much winter snow removal and roof maintenance costs are reflected in the management fees, unlike in the southern or western regions. These costs are often included in reserve fund expenditures, so reviewing the budget to see how much is allocated for winter maintenance can be helpful. If your family places importance on school districts, be sure to check the assigned schools using GreatSchools ratings.

Especially when moving from a state with low property tax rates, the overall property tax burden in New York may feel significantly higher than expected. Simply calculating monthly expected expenses based on the listing price can lead to discrepancies with actual holding costs, so it is safer to add management fees and property taxes together to calculate the total cost.

The National Association of Realtors (NAR) also lists recent financial statements, reserve studies, special assessments, lawsuit history, and rental restriction regulations as items to check before signing a lease. In a market like Rochester, which is clearly on the rise, it is safer to gather these documents first rather than rushing into a decision.

Rather than judging solely based on rental restriction regulations, it is appropriate to also check the financial status of the homeowners association and whether it is warrantable. This article is intended to provide general information, and it is advisable to consult with a real estate professional and a loan officer before finalizing any agreements.