Renting out your condo can be an excellent way to earn some extra income, but there are a few things you should know before making the leap! Here are a few things to consider before getting started:
Make sure you can afford it
When you rent out your condo, you will be responsible for paying all of the associated expenses, including the mortgage, insurance, taxes, condo fees and repairs. Make sure you have a clear understanding of all of the costs involved before making the decision to rent out your condo.
Choose the right insurance policy
You will need to purchase insurance that covers you in case of damage or accidents. It will protect your personal belongings in the event that your tenant causes damage to the unit and help to cover the costs of any repairs that may be needed. It will also give you peace of mind in knowing that you are protected in the event that something goes wrong with your rental unit.
Be familiar with the legalities involved
Make sure you have an understanding of the local laws regarding rental properties. In Alberta this is called the Residential Tenancy Act. There are a number of your condo bylaws that come into play when renting out your condo, so it is important that you understand all of the condo bylaws and rules before making the decision to do so. This includes knowing how to evict a tenant if necessary.
Consider the location
The location of your condo is important when you are renting it out because it can impact the rental price, the type of tenants you attract, and the level of interest you receive. If your condo is in a desirable location, you can charge a higher rent and gain more interest from prospective tenants.
Setting a price
It’s important to research rental prices in your area before renting out your condo because you want to make sure you’re getting a fair price for your rental. You don’t want to undercharge and end up losing money, but you also don’t want to overcharge and price yourself out of the market. By doing some research on other rental prices in your area, you can make sure you’re pricing your rental fairly and competitively.
Dealing with tenants
You will also be responsible for maintaining the unit and dealing with any issues that come up. This includes repairing any damage that is caused by the tenant or settling any disputes. Are you prepared to deal with issues like late rent, damage to the property, or noisy tenants?
Do you have the time to manage a rental property?
Managing a rental condo can take a lot of time and effort! If you do not have the time or energy to dedicate to this task, you should hire a property manager to help you save time and effort by handling all of the paperwork and marketing for you. They can also help you screen tenants and handle all the day-to-day tasks associated with managing the property.
Renting out your condo can be very financially rewarding, but it’s important to be prepared for the responsibility and duties. If you are looking for a reputable property management company in Calgary to help you manage your condo to the highest standards, contact our team today!