5 Important Things to Consider Before Renting Out Your Condo

Buying and renting out a condo is worthwhile because it allows you to produce a regular stream of income. But when you rent out your condo for the first time, you have to do so much more than just snap pictures and advertise them online. You need to do more than just collect rent every month. If you’re really into it, you should be able to learn the ropes — adapting and learning new things is as important as learning to be successful as a landlord.

Here are some helpful tips for first time landlords:

Know Who You Are Selling to and Who You Are Selling to

Ideally, you should determine your target market before you decide on the price, furnishings, or design of your condo. Will you cater to students, or professionals? Know your market and adjust accordingly.

Avoid Tenants who are toxic at all costs.

It’s very important that you follow your instinct when it comes to making certain decisions. It’s critical that you meet with all potential tenants face-to-face before you decide to rent to anyone. Always keep in mind that you are ultimately responsible for what your tenant does. If you don’t like dealing with stress, it may be prudent to not work with someone who demands too much of you or who appears toxic.

It’s wise to run a background check on the potential tenant, just to be on the safe side.

Maintain the condition of your condo unit.

It’s important that your condo apartment is comfortable to live in before you put it on the rental market. Check for leaks, broken windows, and faulty electrical wires before allowing tenants to live in the unit.

If you rent out your condo, decide if you want to furnish it or if you just want to make it available as is. Renting bare condos is less expensive than renting more expensive condos because unfurnished condos cost less to rent and are rented out more quickly than expensive condos that are furnished in some cases particularly if you are hoping for a long term renter.

But this entirely depends on the current market of your particular condo and location.

Smaller families may choose to furnish the condo themselves. If you want your rental condo to be a good place for students to live and learn, install bunk beds, study tables, and built-in storage units.

Price your unit accordingly

Pricing is critical for every business. If you set your rent too low, you’ll end up becoming bankrupt. If you set your rent too high, you’ll lose prospective tenants. Renters expect you to charge them a reasonable price, but you want to make a nice profit from renting out their property.

When deciding what price to charge for a rental condo, you must take several factors into account. You should compare rents for similar apartments in your neighborhood to see where you stand. Price will also depend on how much you spend on furnishing your condo, the amenities, and privileges that you provide, and the costs that a property manager charges.

Prepare all the necessary paperwork.

Preparing your rental contract: If you rent out your condo, you must prepare all the necessary documents. Your contract will include the terms on paying rent, the obligations that the tenant has, and the responsibilities that the landlord has. There are some laws that govern the renting of residential property. Some areas have restrictions on the renting of houses to people who are over 18 years old or are under 65. Be sure to explain things thoroughly to your tenants. In order to avoid misunderstandings in the future, it’s important to explain everything clearly to them.

Check with the building administrators if you need to apply for a building permit before renting out your condo. It’s also a good idea to take care of outstanding tax obligations.