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Renting out Your Condo: Here’s What You Need to Know

Planning to rent your condo? Knowing the market value of your rental condo and pricing it right aren’t the only things you need to do to make a profitable deal. There’s a lot you need to know before you sign the deal with a tenant. Here’s a complete landlord’s guide for you that you must read before you rent out your condominium.

Make Your Condo Better

One thing you must know is that rental condos need to be in a top-notch condition for higher rent amount. Rental condos that don’t look great at first sight generally have a lower value than those condos that have everything in place. Hence, undergo all the necessary repairs and spruce up your condominium. If you see any visible flaws such as cracks and mould growths, address them before you start looking for tenants.

Screen Potential Renters

Once you receive several duly filled rental application forms for your rental condo, it’s time to screen each tenant. Go through each application thoroughly and pay attention to the contact details of previous landlords they have provided. Call all the previous landlords to understand what kind of tenant each one of them was. Did these applicants have disputes with their landlords or neighbours? Did they pay their rents on time? What were the good and bad habits of these applicants? Find out everything and jot down all the details.

Likewise, call employers of these applicants to confirm their employment status and details provided by the applicants. Shortlist applicants that seem to be genuine overall.

Find the Right Tenant

Nobody wants to end up with an annoying neighbour. Therefore, conducting background and reference checks isn’t enough. You must meet and talk to every potential tenant to understand them better. Of course, you can take cues from their background checks as well. Look for someone who can pay rent on time, doesn’t lie about anything, will follow all the rules, and meet your expectations. If you identify any sign of the tenant being a liar, nosy, nuisance-creator, or simply irritating, skip them.

Write a Lease

The last thing to know before giving away your rental condo is how to write a lease agreement. A written lease or the contract will ensure that you and your tenant agree with every legal term mentioned by both the parties and defined by the local governing body. A good lease complies with landlord and tenant rules, and insurance laws in your local real estate market. This tenant lease or contract includes information such as

  • Lease term,
  • Security deposit amount,
  • Rental due date and late penalties,
  • Who will be responsible for which repairs and maintenance tasks and expenses,
  • Rules of behaviour (allowance of smoking or alcohol consumption on the property),
  • Pet policies,
  • Association rules which the tenant needs to follow, and
  • Eviction terms (such as damaging the property or not paying the rent).

If you can’t prepare this lease agreement on your own, you can ask your real estate agent to do it for you.

There are several other steps to prepare your rental condo for renting it out. Make sure you talk to your real estate agent and keep the pros by your side throughout the process so that they can help you do all the necessary things.