So you’ve decided to rent out your condo. You get to earn income while paying off your mortgages and monthly rental fees. You also provide housing for those who need to live in the city. But while the rental property market offers opportunities for you to make some profit from your condo unit, you might be overwhelmed by the laws, regulations, and necessary measures of being a landlord. You need to be committed and ready to take risks, know how to find the right tenant, and learn the ropes of legal papers and inclusions.
Here are six tips you should consider before you rent out your condo unit.
Reach Out to the Right Market
Who is your ideal tenant? Students? Young professionals? Or growing families? Determining the right market will help you reach out to the right people. It is also helpful to know your condo unit, from its nooks and crannies to its ceiling.
Also, take note of where your condo is located. This will make it easier for you to determine which market will most likely occupy your unit. Doing so helps you simplify your pricing, marketing strategies, and furnishings to suit your future tenant.
Prepare Your Unit
Now that you know who to rent your condo out to, it’s time to dress up the unit to be presentable to future tenants. Check for any damages that need repairs. Inspect the sink, toilet, shower, drains, and electric sockets to see if they are working correctly. If you’re renting out a remodeled foreclosed condo unit, thoroughly check for any hazards that may lead to accidents. You don’t want to market a condo full of hidden killers.
When thinking of furniture, decide which are suitable for your tenant. For example, a well-lit working area with a desk and shelves is ideal for working professionals’ productivity and comfort.
After preparing your condo unit, it’s time to take photos of your unit to upload to property platforms. Take clear pictures of all parts of your unit, so interested renters will see what the condo looks like.
Conduct a Background Check
So, you already received messages and inquiries from potential renters. It’s time to do a background check to streamline the good tenants from the toxic ones. Conducting a background check helps you learn more about your future renters’ rental history, occupation, and how they are as neighbors. As a landlord, you wouldn’t want to risk your condo unit being damaged and becoming a hub of illegal activity, or facing complaints and lawsuits from neighbors and the condominium manager.
Learn More Through Your Unit Tour
Giving a tour of your condo unit and the amenities that come with it will show your future renter the bigger picture of renting your condo. A unit tour is also the perfect way to know more about your tenant and how they live every day. You might also negotiate terms such as whether they can bring pets or if they can bring their furniture into the unit.
Giving a tour of your condo unit also helps build rapport with your tenants. It also enables you to determine if they are the right tenant for your condo.
Get Your Papers Ready
Now that you have your tenant, it’s time to bust out the documents to rent out your condo fully. These papers include, but are not limited to, the title of the lease, the Official Receipt and Tax Registration, and a list of house rules and inclusions as an annex to the contract.
Preparing the necessary documents may be a tedious and tiresome process, but this ensures both parties’ interests. Doing so also prevents your tenant from reneging any agreement you’ve had during the tour.
Establish a Healthy Tenant-Landlord Relationship
Lastly, nurture the relationship you have with your tenant by asking how they are doing. You can also talk about any negotiations in the contract and payment terms. Doing so helps you be firm on landlord and tenant boundaries while creating a homey and comfortable atmosphere.
Overall, renting out a condo unit isn’t easy as pie. But with the right planning and the commitment to present your condo unit as an attractive property, you’ll be able to find the right tenants and make your condo unit a great source of passive income.