What is a condo?
Condos are a little different from apartments and therefore the process of renting them out is also slightly different, so what exactly is a condo? In terms of structure, condos and apartments are essentially the same and this is where the confusion lies. The main difference between the two can be defined in terms of the ownership. Condos are available to own, while (usually) apartments are only available to rent.
What are the benefits of renting out your condo?
The most obvious benefit is the income you’ll gain from renting out your condo. As property values tend to rise over time, it’s likely that your condo will be a great investment to make money. With any luck, you’ll earn a good return if you choose to sell it in a few years. What’s more, if you upgrade or make renovations, you can then take this expense off your income (and end up reducing what you owe in tax). Some people choose to rent out their condo because they are not currently living in it; however, they are not prepared to sell. Others choose to because they need money to cover the mortgage on the property they are currently living in. Whatever the reason you would like to rent out your condo, there are a few important steps and considerations to make.
What is the process of renting out your condo?
The very first thing you need to do is to look over your condo documents, to ensure that you are permitted to rent it out. Your condo may have certain lease restrictions; for example, sometimes the owner must live in the condo for a set amount of time before renting it out. Another type of restriction involves limitations on the number of condos that can be rented out in the same development.
Check with HOA
As part of the above process, you’ll need to go through the Homeowners Association
(HOA) to check if there are any restrictions which apply to you. The HOA create and enforce guidelines and rules for property owners. When you buy a condo, you then become a part HOA automatically. On purchasing your condo, the rental restrictions will be made aware to you. If restrictions are put in place after you have already purchased your condo, then you will not be required to adhere to these.
Advertise your condo
Once you know that you are allowed to rent out your condo, you need to advertise it to prospective tenants. Be sure that you write a detailed description, including as much information as you can. From the proposed rental costs to the deposit or the type of tenants, for example will you rent to couples, or are pets allowed etc. The more specific you are in your description, the more likely you will be to attract candidates who are right for your condo.
You’ll need to run background checks on your prospective tenants to ensure that you protect yourself. For instance, ask for their proof of residency, their income, and references from previous rental properties. Failing to screen applications properly could land you in some financial trouble later down the line.
Prep the lease
When you are preparing the lease between yourself and the tenant, you must be thorough. Outline all of the appropriate rules in terms of looking after the property, the house rules and the deposit. When entering into a legally binding contract, it’s important to pay attention to detail. With so much to do, it can be easier to hire condo management services to complete all of these steps for you.
Consider a condo management service
These services can be useful to help you with a variety of time consuming and essential steps. There are many tasks associated with condo and rental management, and failing to adhere to them all may leave you with problems in the near future.
An excellent condo management service can streamline the process of paying association fees and property management bookkeeping. These services will often offer inspections and reports, obtain quotes for repairs, or perform landscaping if required. You can even access rental services including marketing, tenant background checks, condo viewings and resolving tenant conflicts. You likely want the benefits of renting out your condo, without a lot of paperwork and technicalities to deal with! A condo management service can prep the lease, arrange apartment clean-outs and provide useful software portals. For a simple way to rent out your condo, a professional service is just what you need.