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Top Reasons to Rent Out Your Condo Unit
High Demand, Low Costs
Because properties appreciate over time, they are considered as good investments. When it comes to renting your property, the demands are always sky high.
Rental demands on condominium units in Canada’s biggest cities and downtown areas are on a surge over the past years. This will also save you from paying the ludicrous amount of condo fees, condo association dues, and other additional fees by having your tenants pay to cover costs.
Better Management & Security
If you’re worried about the upkeep, there’s no need to sweat. Compared to townhouses, condominium units are easier and cheaper to maintain, with less area to cover.
Maintenance costs, repairs cost, property taxes, mortgage, insurance, and other costs & expenses to pay are considerably lesser.
Not to mention, property developers provide better management and security for residents. Amenities, water, and electricity are well maintained to keep up with standards.
Future Value
When it comes to the resale demand of real estate properties, condominiums are more liquid than your suburban home. If you get the feeling that being a landlord isn’t for you, easily sell it off to many investors.
Because it’s easier to price a condominium unit, they attract more buyers along the way, especially if the location is great.
How to Generate Income From Condo Rentals
You can not only double, but also triple your earnings in 5 ways. Here’s how to make money with renting condos.
#1: Rent It Out to Students and Urban Professionals
A condominium property located near top universities and busy business districts is proven to be highly profitable.
Students and working professionals are transient urban dwellers who are always on the lookout for a temporary home. As such, the demand is high, so you can haggle for a better price.
#2: Sign Up on Airbnb
Another great way to earn from your condominium is by signing it up on Airbnb—while there aren’t any tenants. You get extra cash, it helps travellers, and encourages tourism in the city.
#3: Prioritize Long-Term Tenants
A surefire way to ensure you have a steady stream of revenue is to find a tenant who’s in it for the long haul. With long-term renters, you won’t have to worry about finding a new one every few months. This way, you will save yourself time and effort.
Typically, a long-term lease lasts for at least one year.
#4: Keep a Spreadsheet
Always keep a spreadsheet! While condos are easy, they’re certainly not free from troubles.
Being a condo landlord can be strenuous, so it pays to keep an account of everything. Whether it’s late payment condo fee or remodelling costs, it’s a good idea to keep track of your profits & losses and do the math [1]. This way, you can make smart decisions.
Tips on Purchasing Condos for Rental
Tip #1: Understand Housing Trends
It’s a universally known fact that the housing market is unpredictable, which is why it’s important to do market research before investing. A bad housing investment can easily result in losing money.
Tip #2: Know Your Worth
One of the reasons why homeowners find it difficult to find renters is because they either price their rents too high or too low.
Renting your condominium for less than others means missing out on extra earnings. Whereas, a price too high may lead to longer periods of vacancy.
Tip #3: Buy Early
Developers often do condo pre-selling where unit/s are offered a massively discounted price. If you want to invest, keep an eye out for open house events.
(Looking for ways to manage your real estate? Well, you can check these apps intended for real estate investors)
FAQ
Is it worth it renting out a condo?
Yes, it is worth renting out a condo. One thing we learned as homeowners is that condominiums are easy! Although there are downsides, rental condos are advantageous as they result in a positive cash flow. Instead of letting your property go to waste, you can earn more.
How much can you make on a rental condo?
You can earn as much as $400 extra every month, which can total toat least $4,800 per year. This factors in the interest on mortgage, insurance, property tax, and all the ways on how to make money with renting condos our team discussed above.
Conclusion
Apart from the stock market, investing in real estate and rental condominiums is one of the most lucrative financial decisions you make in your lifetime. Our team of housing professionals can attest to the positive returns when you rent out properties, especially condos.
