Offering your first property to the market as a rental is not a new trend. Most people intend to purchase a property to offer it as a rental. If you have a condo unit and wish to offer it to the market for rent, then you must prepare before you look for tenants. You must make a few changes to become a landlord and learn a few things to become successful.
Look no further as this is your short guide to transforming your condo to a rental.
1. Ensure that everything is working
Remember, you are not only providing shelter to your tenants. You are also ensuring them of their safety and making them feel comfortable when in your property. You must check if all appliances are safe to use and are working properly. If not, replace them or get them fixed. The doors should be well-oiled and it locks must be working. The entire house must be clean and furnished. There are no broken or damaged furniture or fixture.
But if you aren’t providing pieces of furniture and appliances, then you should be clear about it to prospective tenants. You shouldn’t give them false hopes about the rental.
2. Get insurance
Protect yourself and your property by getting insurance. You never know when disaster strikes or something goes wrong. Your insurance covers your losses from fire or damage from weather. It also takes care of the items you lost or have been stolen.
3. Hire a property manager
You must decide if you will shoulder maintenance or someone can address them on your behalf. In this case, you need a property manager. A property manager can cost you, but it takes the burden of serving your tenants whenever they need some assistance.
4. Create rules and regulations
Part of turning a property into a rental is specifying the terms of contract, rules, and regulations. These allow you to set boundaries and maintain the order of your property. First, you must determine the rental due date and penalties for late or missed payments. Next, you must be clear of your policies on noise, pets, home renovation, and smoking. You should also clarify who shoulders home association dues and consequences of damages to the property. Lastly, you must be clear about eviction terms. Don’t leave any detail behind to avoid discrepancies.
5. Decide between short-term and long-term renting
The type of rental you’ll offer on the market depends on the type of property you’ll have as well as other factors like location and amenities. You have to consider these things to know if you should go for short-term or long-term renting. Both types of renting have pros and cons that can be a challenge for you. Thus, it’s best to assess your capacity as well as that of your property to find out which is the best for you in the long run.
These are some of the tips you must know in transforming your first property into a rental. Whether it’s a condo or a house and lot, the rules for setting up an apartment are almost the same. Of course, there are a few tips you should take note of because each property has different characteristics. But in essence, you are safe with these five tips.