Condominium, well-known as Condo, is an apartment building in which each apartment is owned separately by the people living in it and also containing shared areas. Today majority of people are investing in purchasing condos and renting them out. It has become as their side business and a source of extra income. This market segment has thickened in the past years with the increasing inclination of tourists towards cheaper alternatives for staying rather than at expensive hotels.
Converting the residential condominiums into a new business has become a trend these days and is a smart way of utilizing your idle property. But you cannot dive into this business without having desired knowledge and awareness of the risk factors attached to it. Let us discuss some tips to help you in getting the most out of renting your condo-
Get it on the right location
While choosing to buy a condo unit, its location plays the primary role. You have to ensure that you are located in the preferred areas of your target customer base. People always prefer their living places that have all basic facilities and services nearby or consider taking a place on rent near their workplace to reduce commuting time. Also, make sure that your property is located in a safe and clean area as the surrounding locality also becomes a deciding factor for some people.
Looks and Aesthetics
As it is said- ‘The first impression is the last impression’, people are always willing to pay a higher rent for a well-furnished unit. But their choices and requirements may differ, so giving a make-over to the property as per the customer needs gets critical. Get your unit designed according to the market you want to target. Furnish your property in a way that it has an edge among other condos in the nearby localities. You also have to check if electrical wiring and water fixtures is safely incorporated in the unit.
Researching about the market is very crucial. Gather information about the other condos on rent in the nearby areas and charge a reasonable price. Never charge a price that is too high or too low. To decide on the pricing factor, you can consider the amount of costs paid for buying and furnishing the property and other additional costs borne by you for hiring property managers, real estate agents etc.
Spread the word
Buying a property and then putting an “On rent” Board will never derive satisfactory results. It will not attract enough people. To reach your target audience, you have to resort to smart marketing tactics. You can collaborate with your property manager or a professional real estate agent to help you to spread the word by referring your property to the potential clients. Also, while advertising about your property, always mention the USPs of the place and the amenities available to your tenants once they have chosen to rent your unit.
Choose the right tenant
Finding the right tenant for the unit is probably the hardest part. As a landlord, you are responsible for your tenant’s behavior. The one you choose would have to be someone who would respect your property like it is his own. So, speak to your property manager and tell them your specific requirements with regards to the kind of tenants you are looking for. Talk about the rules and regulations that come with renting the unit so that they can avoid being evicted.
With owning and renting a condo property, you can have a good cash flow and with a great presentation of that property, you can ensure your customers are satisfied.