In case you have not been paying a lot of attention to the real estate market lately, there are some changes afoot. The huge press on homes that has dominated the industry for several years has definitely cooled off and as a result there is a dramatic turn happening from seller's to buyer's market. However one thing that has not changed is this country's love affair with condos. New developments are still going up everywhere and most developments are selling out in the pre-construction phase. Now, many of these purchases are simply real estate prospecting and will be immediately listed upon completion of the building but those that are doing this know that there is great money to made in the condo sector.
Many are also getting their hands on condos before completion with the idea of renting the units once they are finished. This is a great way to build equity and assure yourself of a nice income once the project is done. One thing that any investor should keep in mind are the proposed regulations and rules for the new condo building. Some buildings will have restrictions on whether or not rentals are permitted and some will have a certain percentage of units that are available for rentals. If you are an owner that gets in on the ground level then you should be at the front of the line when the HOA is formed and should be able to have a say in how the rules are laid out.
One real security in this vein of investing is the fact that in most major cities there is a real need and growth market for clean, quality residences. If the complex is centrally located then all the better. Condos really lend themselves well to the rental market as many have great assets that come as additional bonuses to owners/renters. There is also the fact that typically, condo will be directed towards a higher class of renter as a new condo will fetch a fairly high monthly rate. You can easily target your property to young professionals and families that are looking for a real quality home and are not hesitant to pay an increased rent for the higher quality homes. Condos are just a fantastic investment whether you are looking for a home for yourself or for a rental property. with the reduced maintenance that condos require they are simply ideal.
Creating the right atmosphere in a rental property is one of the most important aspects of the rental game. There are any number of sub-standard rentals available in almost any city, but with questionable properties come some particular problems. If a property is run-down then likely it will be renting for a lower price in terms of the local market. This will, in turn make it available to a lower income bracket. That in itself is not a problem, everyone needs good housing, but lower income tenants are not as permanent as those in the higher income bracket. You may find yourself having to get new tenants fairly often and this can be a time consuming procedure.
Regardless of what price you decide to rent your property for, you still need to make the place nice and livable right? Of course. Nobody, regardless of income or social standing wants to live in a dump. Renters want nice, clean homes just like anyone else. The first thing that any landlord should do is try to identify their target market. If the property is close to a college then aim for the student crowd, likewise with a property that is close to the city center; try to market to the young business crowd. In marketing to a more refined group, you can easily add some perks that will make the home more attractive. Perhaps offer a high-speed internet connection or bundle it with cable television. This is of course assuming that it is not the stated responsibility of the tenant to see to these utilities.
Perhaps the most simple and appreciated thing that you can do to make the rental more attractive is to have the property clean and in perfect working order. Take the time to ensure that all of the appliances work as they should and that there are no sanitary issues regarding the rental. Beyond that, simply upgrade anything that needs replacing and make sure that the property is carefully marketed. Its always a good idea to require and check references for tenants. After all you need to ensure the safety of your property and the security of your investment.
Both Michael Peterson & Michael Peterson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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