Rent Your Condo
If you are interested in renting out a condominium, there’s a host of things which you must do first. Whether you are an investor interested in buying a condo as a rental property, or a homeowner looking to rent a condo rather than sell it, it’s worth looking at this guide to renting out your condominium.
The first stop should be to check your condo association documents. Some condominium association rules prevent more than 10-20 percent of condo units to be occupied by renters. For those that seek tenants after the limit has been reached, they are placed on a waiting list. Steep penalties await those that have their unit rented without permission. Other condo rules instead assess fees to unit owners who rent their condo.
Then, you should look to your mortgage and insurance policy to ensure that renters are permitted and your insurance coverage will continue. After looking at these documents, you’ll also want to consider the tax consequences of renting out the condominium and any special rules or regulations of your local government. For example, some areas require that landlords take an educational course. If you plan to rent out the condo on your own, you’ll also want to look at the state laws governing the rental agreement and renter’s deposits. You’ll need to have a written contract for a renter to sign.
After you have waded through all the rules, regulations, and contracts, it will be time to find yourself a renter. For some, it will be easier to turn the property over to a management agency or a Realtor to rent the unit.
For those wishing to do it yourself, you’ll still need to set a monthly payment, advertise the condo, show it to potential tenants, check their credit and references, reach an agreement over the lease, collect rent, and handle maintenance.