subject: Time To Get Into The Condo Rentals Market? - Preparing To Rent Your Unit [print this page] Leasing out your condominium is not always the simplest thing in the world to do. When you decide to rent out a vacant unit, you then become a landlord. Condo rentals are something that you must do your homework on. There is a process to renting to other people. As a landlord, you will have legal and moral responsibilities to your tenants.
Before you rent out your condo, you need to place a call to the homeowners association. Most complexes allow for condo rentals, but some do not. Some places require that the owner obtain board approval. You may have to work with a rental cap or impose specific terms upon your tenants. Before you make the leap to becoming a landlord yourself, talk with the association that runs your complex to find out what the rules are.
You need to research your market before you get involved with condo rentals. Find out what other places similar to yours rent for on a monthly basis. Consider what your place has to offer in comparison to others in your area. Think about amenities, services, conveniences and location. Before you put your unit on the rental market, learn the 3 P's. These include the following:
- The product you have to offer
- The placement in the market
- The price you are offering
You also need to find out what other incentives other landlords are offering their renters that are attracting them. Some examples include a month's free rent, free cable and Internet, a gym membership, free parking or even in some cases, gift cards. You want to offer enough to draw people in, but not so much that it won't be worth it to you financially!
Condo rentals are best run like any other type of business. The people who rent from you are not your friends, but instead are tenants of yours. Consider the amount of money that you need to pay on the condo every month. Figure in mortgage payments, taxes and dues. You also need to add up other potential expenses that will arise if you rent out your unit. These include painting, cleaning the carpets, updating your insurance policy, repairs, commission for a rental agent and so on. If you have a tenant who damages your condo, you might even need to think about legal fees.
Getting acquainted with the rent laws in the municipality you reside in is an aspect of becoming a well-informed landlord. All areas have tenancy laws, and you need to know what they are where you live BEFORE you rent.
In some jurisdictions, it may be necessary to obtain a business license to rent. Others may require that you register the property. In cities where rent control can be found, it is a requirement that a rental registration is done, even if you discover that your unit is exempt from the laws that govern rent control. Failing to comply with these laws can land you in hot water and will lead to you having to pay fines.
