Now, more than ever, people are looking for creative ways to earn extra cash. This has led many condo owners to consider putting their spaces up for rent. However, there’s a lot that goes into renting out your condo.
Before you make the leap, there are some important things you need to know. Start out by reviewing these five critical tips.
1. Learn the Rules Before Renting Out Your Condo
Before you spend any time worrying about how to rent your condo, ask this important question – can you rent your condo out? Many condo associations have rules against renting units or, at a minimum, have restrictions.
Make sure you check your paperwork carefully and consider reaching out to the condo board to make sure what you’re considering is allowed.
2. Decide How Much You Should Charge
Next, you’ll want to decide how much to charge for your condo. Start by taking a look at what similar units are going for in your area.
Don’t forget to add up all your expenses – including HOA fees – and ensure the price you set will cover it. Otherwise, you could end up in a situation that costs you money or isn’t really worth the hassle.
3. Make Sure Your Tenant Is Aware of the Rules
As a landlord, you’re responsible for making sure your tenants are fully aware of all the condo association’s rules and regulations. Make sure you add a clause to your leasing agreement that says the tenant is responsible for understanding and following the tenant and resident obligations.
4. Review Your Insurance Coverage
Before you rent out a condo, you’ll need to make sure you have proper insurance coverage. A good policy will protect you in the event of a lawsuit and limit your liability if there’s an unexpected maintenance problem. It should also cover any damage a tenant does to the property and loss of rental income if the condo becomes uninhabitable.
5. Consider Using a Property Manager
Keeping up with maintenance, collecting rent, and dealing with other issues can become a major hassle. Most landlords find that hiring a property management company is well worth the investment.
However, it’s important to remember that not all companies are the same. Look for a highly award condo association management company that you feel comfortable putting in charge of your affairs. To do this, you’ll want to do some research, read reviews, and ask for personal recommendations whenever possible.
Make Your Real Estate Work for You
Now that you know the basics of renting out your condo, you can decide if it’s the right move for you. Whether you decide to move forward with renting or you choose to move in or sell, we’ve got a ton of valuable advice for you!
Our blog is packed with tips for homeowners, sellers, and landlords. Browse through a few more valuable articles today!