If you are an investor or condo owner, you might find yourself in a position where you need to lease your property. It’s not always simple to decide whether it makes sense for you to hand over your property or be more profitable for you to sell. Before making the decision and signing any documents, there are some things that we recommend taking into consideration first.
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Go over these key points to consider before leasing your condo.
- Make sure you have an insurance policy
If you’re going to lease your condo, you’ll need to have a renter’s insurance policy that will cover your unit. This type of policy can be purchased from an independent company or through your existing home insurance provider. You can scout around for policies that have inclusions or additional clauses that fit your needs.
If you’re wondering what an ho6 or renter’s insurance is, it is specific to what is inside your condo unit. This can be very important because it covers damage to your team and the contents that make the condo unit feel like a home. Naturally, you’ll want your tenants to have all of the essential items for a comfortable living arrangement, including but not limited to furniture, cabinets, appliances, clothes, decor, and more.
- Research the tenant and run a credit check
Make sure you create a profile for the type of tenant that you’re looking to attract. You’ll want to screen them and run a credit check before signing any official documents.
If they don’t have good credit, you might consider asking for more than the first month’s payment as well as a damage deposit. Others require security deposits or postdated checks issued for the whole term of the lease.
- Create a rental agreement
Make sure you cover all of the basics, including how much rent is due and when it needs to be paid, what happens if there is damage to the property, etc.
Some landlords might expect their tenants to pay for electricity or heating, which is entirely up to you. You may want to include clauses in the agreement that allow you to take care of minor maintenance in-house.
Additionally, there are several options you can choose from when handling the clean-up process for your condo unit, but you must find an agreement with your tenant before moving in. Make sure they understand what is expected of them and vice versa.
- How long are they planning to rent your place?
If it is just a short-term rental agreement, you can enjoy some tax benefits when the tenant moves out. If you’re looking for something more long-term, then make sure that all of your paperwork is in order and up to date so you don’t run into any problems down the road.
- Make sure you inspect before they move in
You must have a formal meeting to go over the rental agreement, key terms, and other critical information. You also need to document the state of the condo unit and its contents before turning it over to the tenant.
You will also need to do safety evaluations for appliances such as stoves and dryers. This will give you a good idea of what needs to be replaced or updated. This way, both parties are on the same page when it comes to being accountable for damage, loss, or repair.
- Be prepared with an emergency contact number if anything goes wrong
This can include fire alarms going off at 3 AM or pipes leaking water into every room of your condo. In the case of a significant issue, you’ll want to have someone that can take care of things without having to wait for hours or even days. This will allow you to be proactive and not leave your tenant hanging while you’re off enjoying a warm-weather destination.
- When showing potential renters around, don’t forget about safety precautions
This includes making sure all windows are closed tightly and securely locked shut before leaving them alone inside – this includes sliding glass doors.
If there are balconies, make sure to remind them that the rails can be loose, and they should avoid leaning on them. Since you’ll be showing them around, you can at least feel confident that they are aware of the precautions.
As long as you take all necessary precautions, you should have nothing to worry about when renting out your condo unit. However, if something goes wrong, know that renters’ insurance policies are designed to cover anything and everything that can happen.