Property ownership brings you a good number of benefits, including tax deductions and the chance for capital gains. And when you own your own piece of real estate you have the opportunity to rent it out as an income property and make some positive cash flow. Here are some tips to get your condo ready to rent as an income property.
Establish a Competitive Rent Rate
When you own a property that you plan to rent out, you want to calculate how much you can charge in rent. This step is especially important because the amount of rent you can charge needs to be just enough that it is within line of the market demands, but also not be too low that you are losing out on cash flow. If you charge too much for your property, renters will know this and you will have a difficult to impossible time trying to get a renter.
Do some research in your area to find out the rental rates for your type of property. Search around online and with property management companies to find similar properties and their rental rates. For example, if your rental is a condominium in a multi-family property, look at other properties in the same location that are being rented out and find out for how much they are rented. A nearly exact condo in the next building over from yours that is being rented for $1,200 each month will let you know you can charge around the same amount for your property.
Consider the Property Costs
When you are considering a property as a rental, it is also important that you look at all the property's costs to make sure it can sustain itself with positive cash flow. When you set up a property as a rental, you don't want to have to put into your own money to cover the expenses on the property. Therefore, as you look at the property cash flow and its potential, calculate all the property's expenses to ensure the rent will cover everything.
A property that is in a condominium community will provide you a great environment to use it as a rental property. A condominium can provide lifestyle benefits that a renter will be looking for, such as a home with little to no yard care and snow removal taken care of for them, as many condos handle these within the HOA's (homeowners association) agreement. Just be sure you calculate the HOA costs into the property's rental expenses, and any other maintenance you need to handle for your tenant while they are renting from you. After you calculate a good rent rate, make sure it will cover all the property's needs and costs.
For more information, reach out to companies like Wynmoor Village Condos.