Do I need to notify my lender if I rent out my new apartment?

Question

I recently bought a 1 bedroom apartment with the hope of upgrading from the studio I live in now. It's been very hard however to sell my studio for anything reasonable and I am considering staying in my studio and renting out the new 1 bedroom until I'm able to sell the studio at a reasonable price. Do I need to notify my lender if I rent out my new apartment?

I've also been reading about some of the tax advantages of an investment property. Will my lender find out if I classify the 1 bedroom as an investment property on my taxes to take advantage of depreciation, taxes and interest deductions?

Answer 1

There is no need to notify your lender with the current mortgage. And yes there are tax benefits, but advise from a professional would serve you best because they take into account your whole financial picture.  

Answer 2

laws are different in each state and lots of cities........a coop or a condo?

usually you can rent a condo, a coop usually requires the permission of the coop........

you need a real eatate lawyer.......

Answer 3

Do not notify your lender you are going to rent you apartment.  It could cause you problems.

Lenders to do not get a look at your tax returns.

Answer 4

No.  Your lender is only interested in wether or not you are making the payments on the mortgage.

Answer 5

If you bought the apartment as owner occupied and then do not occupy it you need to let them know.   You are committing fraud otherwise.

You also need to redo your homeowners insurance, unless you originally purchased insurance for tenant occupied property you are not going to be covered as your information was falsified.