4 Considerations to Make when Renting Your Montreal Condo

modern house 2668333 1280

When you originally searched for condos and made a purchase, you may not have realized that it was really the beginning of your real estate investing career. While you may have planned to have it rented out for a few months while you were vacationing, you likely never considered the lucrative investment property it could turn into. However, renting out a condo, no matter where it is located, may not be as easy as you originally thought.

Before you begin advertising that your condo is for rent, you should consider the following:

  1. Could the renting of your condo be hindered by rental caps?

A rental cap, which is able to be imposed at any time, will limit the total number of condo owners that are allowed to rent out their condo at the same time. The rental cap is designed to help and keep the demand for purchasing a unit in the building up, which means that you may be unable to rent out your condo if there are already a number of other owners that are renting. Additionally, if you are a fairly new condo owner, then you may be put at the very end of the waiting list for owners that desire to rent out their property.

  1. Will it be difficult to rent your condo due to the building’s rent restrictions?

There are a number of buildings in more up-scale neighborhoods that will require condo owners that rent out their property to set the rent above a particular amount in order to maintain an exclusive clientele. It may take extra time to find tenants that are willing to pay this additional rent.

Before you begin the process of renting your condo, you will have to find out all of the details about your rent restrictions. Failing to have this issue at the ready can lead to a variety of problems and may deter potential renters from working with you. Usually, you can talk to the manager of your building to get a breakdown of your rent restrictions and whether or not there are any loopholes you can use to your benefit.

Are FHA policies going to be an issue?

There are many buyers that utilize FHA loans since they only require an initial down payment of 3.5 percent. However, in order to use these loans to purchase a condo, the building has to be FHA certified, which means that the building must meet a certain number of requirements, which include:

  • At least 50 percent of the residential units in the building are owner occupied.
  • The units are not rented for fewer than 30 days.

When you take the time to find out about any rental restrictions that are imposed on your condo early on, it will likely save you some headaches and frustration down the line.

If you are unsure about these policies, be sure to check out this Home Buyers Guide to FHA. In this guide, you will be able to find a lot of useful information that can help you figure out what you need to do to make this rental process easy.

Getting the Condo Ready to Rent

Once you have all of paperwork read to rent your condo, you will need to make sure it is in tip top shape. If there are any repair issues present, then it is a good idea to have them fixed immediately. Condos that are filled with problems will be extremely hard to rent out. Even if you have to pay a professional to make these repairs, it will be worth it due to the appeal it can add.

Contacting a professional in the industryis the best course of action for a prospective buyer. The professionals will be able to lead a person in the right direction and get them the condo they need.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.