subject: Choosing To Rent Your Condo [print this page] Whether you are buying a condo with the purpose of selling it or you are ready to move out and you want to keep the property, renting the property is a great opportunity. There are always people out looking for somewhere to live and if done correctly, this move can benefit you financially. However, there are several things that must be taken into consideration before the new person moves in and takes over. Before anything else, make sure that you check with the company that runs the area to see if it is possible to rent out the unit. In some cases, there are limits to the number of rentals in any given community.
How Much Will You Charge?
Your first step should be to determine how much you are going to charge each month. If possible, spend some time researching what others in the community are charging and look into the cost of any apartments or homes nearby. You want to be sure that your rent is falling somewhere within that range. Think about how much you are paying each month for the mortgage (if applicable) and the maintenance fees. The goal is to charge rent that will cover these two expenses at the very least. Then, in order to make money or save money for future repairs or times when the unit is vacant, add a little bit more to the rent to come up with the final number.
Will You Handle the Property On Your Own?
You can choose to handle the condo rental on your own or you can turn it over to a professional management team. It will cost a portion of the monthly rent to have someone else handle the property but you will not need to worry about collecting payments, checking on things, or handling any repairs or issues. You will still be responsible for the costs but the management company will make all of the arrangements. Many people start out on their own and then decide that they want someone else to take over.
How Will You Find Renters?
The ability to find renters tends to be based on several different factors. The economy often determines how many people are out looking for rental housing. Also, the area of town that the property is located in as well as the overall condition of the condo will be taken into consideration. It is possible to pay a realtor to find someone to rent your condo. While there is often a cost associated with the service, it does provide many more potential renters than you may be able to find on your own.
Can You Afford the Payments in Between Renters and Other Expenses?
It is always a good idea to have a cushion when it comes to the expenses surrounding renting your condo. There may be a month or two when you do not have anyone living there and paying rent. If you have a mortgage, those payments are still going to be due. If something goes wrong or an appliance needs to be replaced, it might be a good idea to have enough money saved up to handle the cost.
