Condo Rentals Tips

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What Is the Best Way to Market My Condo Rental for the Price I Want?

How to Market Your Condo Rental for the Price You Want

To market your condo rentals effectively, you should walk in the moccasins of your market, qualified renters. Know what your market is doing. A market analysis will show you what other condos for rent in your area are renting for now. If a similar condo for rent in your geographic area is renting for $1,200 per month, asking for $1,500 or $700 will cause you problems.

Asking for more than current market rent will typically result in a vacancy, which can be very expensive. Offering your condo rental for much less than market will bring numerous potential tenants, some of which you may not want to occupy your property for reasons of which you'll quickly become aware.

Using one or more of the helpful websites like Rentals.com that are available to help you market your home for rent can be very effective. Many, many people use the Internet to conduct their first search for available rentals. So, consider putting your condominium rental on a successful website to get the maximum exposure for your property. Marketing is a combination of exposure, accurate pricing, and convenience for your customers.

By doing your “homework,” including offering your condo for rent at the right price, using the best marketing techniques, and maintaining your property properly, you'll keep your condo rental occupied and profitable.

   
How Should I Set the Rent for My Condo Rentals?

How to Set the Rent for Condo Rentals

It is tempting, as a landlord, to have a wish list for the price you will charge for your condo rentals or to use some figment of your imagination to set a price. Resist these urges. Setting the proper price for condos for rent takes some thought and time. You should always seek a positive return on your investment just as your future tenants will want a positive addition to their quality of life by renting your condo.

There are two commonly recommended methods to determine the optimum rent for your condo.

  1. Return on investment. You should know – or learn – what it costs to own and maintain your property. This number should include your mortgage payment, insurance, taxes, management fees (if applicable), and the profit you hope to make on your rental. The rental income you need, before you enjoy a profit, is typically called your “break even” point. Your ideal is to add the percentage or amount of profit you'd like to make to your break even rental amount.

    Unfortunately, this approach must be used with real world understanding. Should you need to receive $1,100 per month to reach your income goals, but a comparable condo for rent currently commands only around $950 per month, you may have to adjust your expectations.

  2. Market analysis of comparable properties. You must be honest with yourself. Examine what the rental prices are for comparable condominium rental properties in your area. The key word here is “comparable.” For example, if your condo is in a complex that has many water views, but yours provides the view only from a corner of the deck in winter, you should not expect to generate the same income as condos for rent that have water views from living, dining, and bedroom areas.

    Understand that the same tenants that are seeking a condo rental in your neighborhood may view yours and compare the quality, appearance, and amenities offered for the condominium rental price being asked. Always remember, the real estate rule that never changes: The market (the renters and/or buyers) determine the price of purchasing or renting real estate.

Know what the market rate is for condos for rent in your area and set your price in relation to those conditions and in light of the return on investment you want.

   

Number Of Parking Spaces For Condo Unity

If you are considering condo rentals make sure to have the condo owner explain the visitor and parking policy for guests and visitors. Depending on the type of condo complex, there are different security and entrance policies and parking regulations. If you have visitors to your new rental home you want to be able to explain to them how to sign or check in and where they can park there car while they visit and also if they stay overnight.

   
What should I do to keep my condo neighbors happy?

Respect Your Condominium Neighbors

Living in a condominium community is very different from renting an apartment in an apartment complex. Most of your neighbors will be condo owners and will have a lot of time and money invested in their homes. You want to be courteous and respectful of their homes and the entire condo community, especially common areas. You do not want to get labeled as the "€œdisrespectful renter€." Condo owners can be concerns about tenants and other renters to the homeowners association, which can result in eviction in the most extreme circumstances.

   
Is there any additional rules for renting a condo then an apartment?

Covenants, Conditions, And Restrictions (CC&Rs) Of Condo Living

A condominium complex has multiple owners who own separate areas individually, and common areas collectively. Decisions about common areas are made by the homeowner's association (HOA) or it's board of directors. Condos have covenants, conditions and restrictions (CC&Rs), which govern everything from the elections of HOA officers to the allocation of parking spaces. Condominium landlords should give their tenants a copy of the CC&Rs for reference and tenants should take the time to read the CC&Rs and ask for clarification of any rules they don't understand. Condo rental agreements should also have a paragraph stipulating that the tenant has been given the CC&Rs, and agrees to abide by them, and will be financially responsible for any fines levied against the owner as a result of the tenant's actions. If you are renting a condo, make sure you get to read the CC&Rs before signing the lease.

   
Who do I contact for repairs on my rental condo?

Repairs In The Condo Unit

When tenants rent a condo unit one of the biggest problems is often with repairs. Tenants are often left in the dark about what to do if the condominium, they are renting, or the common areas around it, need repairs. The difficulty is often in determining whether the individual owner or the homeowners association is responsible for the particular repair. Generally, if the problem concerns the individual unit, the tenant must contact the owner/landlord to have the problem resolved. How to go about repairs should be discussed with the owner of the unit and they should contact the HOA, unless you both agree to handle it another way.

   
There is a gym in my condo rental unit. Am I allowed to use it?

Use of Condominium Amenities

There are many perks to living in a condo community. Many condominium complexes offer great amenities on location such as use of pool, gym, tennis courts, and community center. If you are considering renting a condo unit, ask if any amenities are included and make sure to have them included in the lease. It is a nice treat to have access to additional services in your own complex and this can also save you some money.
Be sure to ask the owner/landlord the specific about extra amenities and the rules and restrictions with them including laundry facilities, gym memberships or tennis court fees. You will also want to find out if any special passes are required to access the services and find out the visitors policy, so you will know if you can invite friends.

   
Do they rent condos weekly or monthly?

Renting A Condo On Vacation

Consider renting a condo while on vacation instead of staying at a hotel. Often when families go on vacation or holiday for a week or more, having a kitchen and your own space is very beneficial. It is worth looking into prices and locations of possible condominiums to rent while on vacation. You can also save a lot of money having a kitchen in the unit by making a lot of your meals in the condo rather then spending the money on restaurants and dining out.

   
If I Offer My Condo Rentals to a Family Member, Can I Still Deduct My Expenses?

Deductible Expenses When You Rent to a Family Member

People often ask if they still can deduct their operating expenses if one or more of their condos for rent are offered to family members. The simple answer is “Yes.” In reality, the more correct answer is “Probably.” Here are some questions you might want to ask yourself.

  • Am I charging a “market” price for my home for rent? For example, if other comparable rentals in your area rent for $1,000 per month and you're giving your nephew the property for $300 per month, the IRS may ask for clarification.
  • Is this an “arm's length” transaction? Would you complete this condominium rental with similar terms for a person who was not a family member? That is the question that may be asked by your tax advisor or the IRS. Simply put, if you rent for a lower than market price, you may become subject to vacation home rules and not landlord-related rules. It could be assumed you are “giving” the occupancy of your condo for rent to your family member. There are a few cases that provide a precedent that if you rent to a family at a discount (often up to 20%), you'll still qualify as operating a business, which allows you to legally deduct associated expenses.
The real concern is that there are often multiple components to this issue. You, obviously, have the right to charge whatever you want for your condo rentals. Always consult with your tax advisor before assuming any issues, for better or worse.

The above-listed tip is for informational use only. Always read entire specific documents and language before executing any contract or agreement.

   

Respect Your Condominium Neighbors

Make sure you consider the rights of your neighbors. As a tenant you are required by the law not to interfere with the reasonable peace, comfort or privacy of your neighbors. Because you are living in a home for rent, make sure you and your visitors are aware of your noise level and try and keep in mind the proximity of your neighbors. Do your best to keep the noise level down.

   
Should I rent out my condo?

Renting Your Condo

If you have purchased a condo and are planning on moving out, but are having a hard time selling the condominium, consider renting your condo unit. Make sure you take into consideration utilities fees and maintenance when negotiating a price with a possible tenant. Try evaluating the advantages of your condo and the attractions in the area and consider renting it out to tenants or a corporate office who rents units to employees. Be sure to carefully evaluate all the costs and scenarios before choosing a tenant and signing the lease.

   
What should I watch for when renting a condo?

Association Dues And Assessments

One of the greatest areas of concern for condominium tenants arises when the owner/landlord fails to pay the association dues or assessments. Current tenants may not have any idea that the owner is late or has missed payment(s).

In some cases, the Homeowner's Association (HOA) can be taking action against the owner without the tenant knowing. Depending on the situation, it is possible the condo may be in foreclosure and the tenant may not be aware until a notice is placed on the front door. This can be very confusing and unfair for the rental tenant of the condo unit. It is best to pay your rent when due and have an open relationship with the owner and keep your eyes open for signs of an irresponsible or troubled landlord.

   
How many parking spots do I get with my rental?

Number Of Parking Spaces For Condo Unity

Before you sign a lease make sure you know how many parking spots come with the condo unit. Condominium complexes usually have a set amount of parking places for each unit, sometime more can be purchased, but it is important to know how many spots you have access to and also where to have your visitors park. Not clarifying these upfront can cost either the tenant or condo owner a lot of money and hassles. You also want to be sure to rent a home with the amount of spaces needed for the number of cars you own.

   
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