What You Need to Know about Renting Out Your Condo
PRLog – June 26, 2015 – KEY WEST, Fla. — Per Fred Mullins, Top Producing Member of Team Mullins at Coldwell Banker Schmitt, “When you’ve finished deep cleaning every square inch of your condo, you won’t yet be totally ready to start advertising its availability to rent.
These are some things you need to know about renting out your condo before taking tenant applications:
● Know the homeowner’s association rules. In most cases, you’ll be allowed by the HOA to rent out your unit. The reason for this, in general, is that associations understand that its best a property stayed occupied so owners stay current with their HOA fees
● Learn about local rental rates. There are a few factors which go into rental rates. You’ll need to find similar properties with the same number of bedrooms and baths, nearly the same square footage, and in similar condition.
● Have a professional lease for tenants. You need a professional lease in order to have all the protections you need to limit your exposure. Be sure to give the tenant a copy and strongly suggest they get renter’s insurance to protect their possessions.
● Be ready to make repairs and replacements. Being a landlord means having to address problems, like making repairs and replacing appliances when they stop working. If you don’t do these in a timely manner, you’ll face a slew of problems and probably be in violation of your own lease terms.
● Understand that you’ll have vacancy periods. One thing that many investment property owners underestimate is the amount of vacancies. These can range from a few weeks to many months, and, you need to have some savings for these periods.
Another thing you should do is consult a tax professional. When you rent property, you’ll have certain tax benefits available to you. In addition, you should have an experienced real estate attorney to turn to if you need to evict a tenant. Even non-paying tenants have rights and you don’t want to put yourself in a position of being sued for breaking the law.
Fred Mullins, P.A. holds an MBA, B.S., real estate license United States Coast Guard Master Captain’s license and commercial pilot’s license. With over 20 years of cross functional experience in real estate, international asset management and construction management, Fred’s experience places him as one of the top real estate professionals in the Florida Keys.