There’s nothing quite like the feeling of renting out your condo for the first time. The sense of pride at having achieved such a financial milestone; the excitement of additional income making its way to your bank account; and of course, the nervousness and trepidation that goes along with finding the right tenant to trust your investment with!
Without a doubt, renting out your condo unit (and handing the keys to one of the biggest purchases you’ve made in your life to someone who’s likely a near-stranger) can come with its fair share of anxieties and even pitfalls – but if you do things right, the rewards well outweigh the associated risks and concerns. Follow along with these five key pointers, and you’ll be well on your way toward condo leasing success before you can say, “Rent is due on the first of the month!”
Five Key Tips to Follow When Renting Out Your Condo Keys
1. Find the Right Tenant
When it comes to finding the ideal tenant for your condo rental, it’s often a matter of using your best judgement and common sense to bring on someone who’s a good fit. Consider the same factors that you might have been asked about as a tenant or that realistically might impact the success of your rental. Does he or she have a steady job? If not, it might make paying rent difficult! Is there a history of financial responsibility? Find out by running a credit check on your potential tenant’s financial history – a move you’re well within your rights to take as a renter, and one that we always wholeheartedly encourage.
It’s also never a bad idea to enlist the help of a property management-type service to keep things moving along smoothly. If you decide to go this route, we’d encourage you to seek out a smaller, locally-based business. Smaller companies with slimmer portfolios tend to be able to offer better services for a lower price point while taking an inherent pride in what they do that you just don’t often see from bigger outfits. Plus, it’ll be easier on your wallet as a renter, which is always a nice bonus!
2. Get a Lease Signed
We know, we know. We can hear you groaning from here. Getting a lease…what a hassle! We’ve heard all the reasons that people feel like they can forego the “formality” of having a tenant sign a lease: we know the person, they seem really nice, they’re a friend of a friend, they made a great first impression, we got a good feeling about them, etc. etc. No matter the connection you have with a tenant or the “gut feeling” you get from them, though, not having formal leasing paperwork signed up-front almost always leads to trouble.
By having your tenant sign a lease, you have recourse if things start to go sideways. If rent comes late, the property incurs damage, or any other agreements are broken, the next steps forward are all there, in black-and-white. Not only that, but signing a lease is in a tenant’s best interest, too, as it stipulates crucial details like rent payments and due dates, maintenance and repair responsibilities, additional fee structures (late rent, pet deposit, key deposit), subletting information, damage deposit particulars, and more. A fair and proper lease allows both renter and tenant to hold one another accountable to each other and is the foundation of communication between these two parties. Don’t skip out on the important step – get a lease!
3. Update Your Tenant Undertaking
As part of getting your new tenant properly settled into the condo community, one of the first things you’ll want to do is update your tenant undertaking. This essentially informs your condo corporation that you, the owner, will be living offsite, and that the unit will be occupied by your vetted tenant. Be sure to take care of this all-important step so that your tenant doesn’t get a knock on the door from the condo board in your absence – an experience that definitely wouldn’t be a good look for you as a responsible renter in the eyes of your new tenant!
4. Catch Your Tenant Up on Condo Community Policies
Once you’ve got your tenant settled and your condo board informed, you maintain a responsibility to catch your tenant up on the policies and rules of the building. This is an important and critical step in the renting process.
Not only does having your tenant be in-the-know keep stress levels down for owners and occupants alike, but it will keep your tenant from unknowingly incurring condo board-levied fines – fines that you, as the condo owner, will ultimately be responsible for paying.
5. Don’t Rush Through Any of It
At the end of the day, one of the biggest key takeaways we’d like to leave you with here is this: take your time when going through this whole process, from choosing a tenant to making things official to getting your new lessee settled in. Don’t rush into anything just because you need the money or are looking to make some quick cash. Trust us – it’ll end up costing you far more in the long run if you bring in somebody who isn’t the right fit. Do your research, understand your condo’s bylaws around tenancy, and bring in the right occupant – follow these steps, and you’ll be able to sleep soundly knowing you’ve set yourself up for renter success!
Do you have questions or concerns about renting out your condo unit? Feeling stressed at the idea of potentially letting the wrong person into your home? Contact us at Catalyst Condo Management today and we’ll walk you through everything you need to know to rent your condo out with confidence!