- January 23, 2020
- Posted by: @dmin
- Category: Uncategorized
There are several reasons to rent out a condominium. Whether you want to hold on to your condo to appreciate before you list it for sale or you’re interested in a long-term investment, renting out your condominium can cover the cost of maintaining your property and leave you with some rental income.
Here are some useful tips on how to rent out a condo without involving a real estate agent in Toronto’s competitive housing market.
#1: Call Your Homeowners Association
The first and the most important step in renting a condo is to contact your homeowners’ association and inquire if their bylaws allow condo rental. Most condo associations permit rentals, but others don’t. Some associations require board approval while others function on a rental cap or even impose specific lease terms. Lately, most condo associations restrict renting until you have lived in the unit for a specified period (mostly 1-2 years). The best way to understand the prevailing rules and regulations is to contact your homeowners’ association.
#2: Look for Tenants Within the Community
The fastest and easiest way to rent out your condo is to tap the existing renters in your condo community. This works well if the complex already has a substantial number of happy renters. A good approach is to ask your management office if there is any interested renter who has approached them about available units. If that doesn’t work, ask for permission to post fliers around the complex to advertise your condo.
#3: List it On Craigslist
The internet provides a lot of options on how to rent a condo from the comfort of your phone or tablet. Many communities across the United States and Canada use Craigslist to list or find property rental opportunities.
You can list your condo unit on the “for rent” section of Craigslist and keep refreshing it to keep it on top of search results. Upload several nice pictures of your condo and include a video link to allow potential renters to take a virtual tour around your property.
#4: Write a Winning Advertisement that Generates Interest
Regardless of the platform you use to advertise your condo, you need to write a powerful ad that generates interest from potential tenants. Remember that you’re not selling a video or book – you’re promoting a home for someone to rent and live in.
So, you need to do more than just indicating the location and rental rates. And since the Toronto real estate market is highly competitive, you need to work harder and smarter to stand out from the competition. Include details like bedrooms, square footage, bathrooms, features and finishes, amenities, transportation, and the neighborhood.
#5: Take High-Quality Photos
Speaking of surprises, many people still make the mistake of posting properties for rental without including photos. Where to post a condo for rent doesn’t matter if you don’t include high-quality photos of your property. For people to gain any sort of interest in your condo, you need to give them a glimpse of what it looks like. Fortunately, today’s smartphones can take crystal clear pictures that will showcase your condominium to the world.
#6: Strategically Book Viewing Appointments
When you think about how to rent out a condo without an agent, you’ll probably worry about handling appointments whenever potential tenants begin to show interest. So, what do you do with all those emails and phone calls? Don’t blindly schedule them in but do some pre-screening. Call them as soon as you can and ask them some questions to determine their likes and dislikes. What exactly are they looking for? It’s surprising that some people could be looking for something completely different from what your condominium offers. Other questions to ask include:
- Who is leasing the unit?
- How long are you planning to lease it?
- What is your occupation?
#7: Screen Your Potential Tenants
Make sure you meet everyone who will be staying in the unit. That means the whole family (husband, wife, boyfriend, girlfriend, and the kids). If the decision-makers don’t come in person, you could be wasting lots of valuable time. Try to learn the characters of your prospective tenants, and if you’re not good at it, ask a friend or colleague who knows how to learn people to accompany you.
#8: Engage Your Insurance Agent
Before you rent out your condo, talk to your insurance agent and inform them of your plans. Don’t skimp on liability insurance. As a landlord, you’ll be more exposed to potential lawsuits should something go wrong in your condo. The cost of insurance is actually nominal compared to the added liability protection it can provide.
#9: Daily, Weekly, Or Corporate Condo Rentals
If you’re still asking how do I rent my condo, you’ll be happy to learn that condo rentals can be either short-term or long-term. If your association allows it, it’s a good idea to rent your condo on a short-term basis. This arrangement works best if your unit is furnished and is situated in a convenient location where tourists or business professional can access. While short-term rentals result in constant turnover, you can charge higher rates and make good returns.
#10: Craft a Professional Lease Contract
Once you get someone willing to rent your condo and make the initial payment, you’ll need to craft a detailed lease contract before they move in. A lease contract will typically include the following:
- The rental price (clarify what the rental price entails and what costs the tenant will pay on top of the rental price, e.g. utility bills).
- The names of people who will be occupying the space
- The length of their lease term
- Lease renewal terms
- Pets or no pets
- Smoking or no smoking
- Terms of subletting
#11. Last, But Not Least: Consider a Property Management Professional
- Local property management professionals can help you get the exposure you need for quick tenancy, and generate enough gross profit to make the expense well worth it. Here are 6 reasons a property management professional can help:
- Are knowledgeable about the local city, state, and federal laws.
- As a marketing pro, your property management specialist or team can minimize vacancies and their length. They know how to maximize your earnings so they – and especially you – see profits. (It’s a win-win.)
- Maintain your property. Routine and emergency repairs will be inexpensive as possible but effective.
- Negotiate rents and track expenses. You’ll receive a statement of earnings every month.
- Screen applicants carefully. Red flags can be invisible; property managers try harder to see them.
- Serve as a buffer between you and your tenants. Many property owners enjoy interacting with their tenants; some don’t. It’s easier to make the best decisions when you’re not personally invested in your renters.
The bottom line is this: You can save time and money when you allow a property management professional or team maximize your investment. What are you waiting for? Remember, time is money.