Renting Out Your Condo to Make Money? Read This Guide
A classic way to make money in real estate is to purchase a property and rent it out to an ideal tenant. Renting out a condo, however, offers more perks than other types of property.
Condominiums, for instance, have property managers who take care of most maintenance jobs. Tenants won’t have to worry about shoveling snow off the main entrance or keeping the grass looking beautiful – the property maintenance staff has that covered. But property owners have to follow rules and processes when they rent out their units.
Take note of these suggestions before you put a “for rent” sign on your property:
Before you have your unit rented out, read the rules and regulations provided by the homeowners association (HOA) board. If your HOA does allow you to rent out your unit, take note of the restrictions. Some HOAs, for instance, only permit a specific number of individuals to live in your unit. Others do not allow pets. Be familiar with what you can and cannot do with unit rentals.
When you rent out your unit, you need to be realistic about how much you can charge people from living in your property. Do your homework by determining the rental prices charged by other condo unit owners. The condominiums you’re checking should be comparable to yours.
If you’re unsure exactly where to begin, get in touch with an experienced and skilled real estate agent. They can come up with a comprehensive market analysis report describing the current state of the rental market in your area.
You and your tenant should get an insurance policy. As a landlord and condo owner, you’ll want coverage that safeguards you against a variety of potential risks. A couple of policies you should get are the standard condo insurance and special assessment insurance.
As for your tenant, they should have a policy that covers theft and damage to their belongings. When making the lease agreement, add a clause stating that the tenants must take out an insurance policy.
You don’t rent out your condo unit to just anyone. You have to screen all interested applicants before letting people live in your property.
Here are some strategies to help you screen tenants effectively:
Once you have selected the tenants who will live in your property, the next step is to draw up the lease. The tenant agreement should contain specific details, such as:
The lease you make has to be airtight. A solid lease will protect you from legal issues that may arise. Consult an attorney if you need further assistance in making this document.
The tenant you’ll bring into your condo unit should fully understand the rules and regulations stipulated by your HOA. Make sure the lease agreement contains a statement that discusses the importance of adhering to the rules. Encourage your tenants to raise questions before they move into your property.
Take note of this guide when you decide to rent out your condo unit. When you’re able to get a trustworthy tenant for your property, you can enjoy receiving income that will help pay for your household expenses.