Buying a condo for your home is a great investment and provides you with shelter and protection. But when you need to move elsewhere selling your condo may not be the best option for you based on the current real estate market values and your equity in the property. However, you can rent out your property to help cover its costs to buy you time until the real estate market warms up. Here are some tips to help you as you prepare to rent out your condo to tenants as an income property.
Look at All Your Expenses
When you own a condominium you already know all the main expenses for the property, such as your mortgage payment, homeowner's insurance, and property taxes, but don't forget to consider all the costs as you calculate the property's cash flow. It is important you consider all your expenses to make sure the accurate market rent you charge is sufficient to cover your costs. A professional real estate agent can help you calculate the market rent for your condo, which will help you improve your chance of renting it.
If your property is managed by a homeowner's association, don't forget to calculate the HOA fee into your cash flow and expenses. Also, if you need to arrange for a property management for the condo you may consider hiring your realtor for this task as well. This type of cost is usually a small percentage of your rental income, and is essential for calculating your cash flow.
Advertise and Market Your Rental
To find the right tenant, you need to get the word out in the community and area that your property is for rent. The more you can spread the word about your new property as a rental, the more tenants will view it and increase your odds of finding the right tenant.
List your property for rent on social media, local discount newspaper ads, with a local real estate rental office, and any online sale listing service, such as a local news website. You can also place a rental sign in the window or in the front yard of your property. If your property is managed by an HOA, make sure you are following all the rules to place rent signs in or on the property.
Screen Every Tenant
It is also important to make sure you screen any tenant before you allow them to move in. Once you give your property's keys over to the new tenants, it can be difficult to evict them on terms of a lease violation. So, be sure you screen any applicants with a background check, credit check, and rental history verification.