8 Tips On How To Rent Your Investment Condo For Top Dollar
If you are a landlord and want to maintain top tier rental income as well as continuously improving your investment, and maximizing your appreciation, read this!
Here we will focus on real life experiences with our own investments, as well as successes that we’ve seen from clients who year after year receive the highest rental income in their properties.
1 || USE A REALTOR
No seriously, it’s imperative to treat your investment as a business and have your interests protected at all costs. Typically homes and condos that are rented through realtor services are more thoroughly vetted (background checks, credit verification, etc.) as well as properly documented with all up to date forms and paperwork required by the Landlord and Tenant Board.
2 || PAINTING THE SUITE
Painting goes a long way & is very cost effective if you don’t have an enormous property. Lets face it, tenants don’t really care about the walls as long as they aren’t creating holes. Paint will cover the everyday damage and marks left behind, as well as freshen the home up while reverting the walls back to a neutral color (think grey or white).
3 || APPLIANCES MATTER
Maintain your appliances as if they were your own. If something breaks, make sure to fix it properly! Time and time again we see band-aid attempts to fix a leaky faucet, toilet, or hide damage done to cabinets or closets. Replacing and presenting a new product to a prospective tenant will show that you’re serious about your property and demand respect for the utilities provided! If you don’t care, neither will someone else!
Location! Of course general location is important, but more specifically, if you’re looking to become a landlord and are selecting a unit to invest in, location in the building is very important. Is it next to the elevator or garbage? Are there amenities on the same floor (causes more foot traffic), is it a corner unit? Many decisions must go into the purchase of an investment property, make sure to use an area expert from condomapper.ca who will treat your investment as if it was their own.
4 || PERFORM MOVE IN / MOVE OUT INSPECTIONS
This will keep not only yourself, but your tenant accountable. Maintenance is the main thing with investment condo’s. As we’ve seen cash flow margins shrink over the years, many condo investors now have a goal to just break even after all their expenses are paid for. The last thing you want to happen are unexpected failures from your appliances, or mechanical systems. Ensure before each new tenant moves in that everything is working properly, as well as prior to their last month before leaving. This will extend the life of your appliances and allow you to get another tenant in there with no hiccups.
5 || RENT YOUR PARKING OUT SEPARATELY
Although not usually advised, in some instances it can be worked out ahead of time if the prospective tenant will require parking or not. If you own a parking spot (always recommended) and your tenant does not require it, you don’t need to include it in the monthly rent. Post your parking spot for sale in your building's mailroom and try to get another $100-$200/monthly income.
6 || WHEN IT'S TIME, HIRE A CONTRACTOR
If you aren’t capable of performing renovation work yourself, hire a contractor to update your unit every 4-5 years. Again, remember this is your business, you don’t want it falling apart or deteriorating to a point where you need to shut down business for 3+ months. By renovating in between clients you will keep the value of your investment at top dollar. Some clients prefer letting the unit deteriorate before performing a total overhaul, where others enjoy small updates here and there to ensure the unit remains modern and relatively new year after year. Either way, this is an investment that pays its dividends back to you one way or the other. Renovations with quality material and appliances always will pay itself back in the short, and long term of your investment.
7 || SELL WHEN YOU'RE ON TOP!
Although this doesn’t necessarily generate you rental income, selling your investment at its peak should always be the goal. Whether you’re day trading stocks, or playing the long game with real estate, taking profits at its peak has to be the goal. Stay on top of your market and when things are going really well, consider selling! Secure your investment and yield all the gains when you feel the time is right & you’re ready to re-invest where you can make the similar gain as this property did!
8 || TIMING YOUR SALE
The art of timing the sale of your condo will pay off. Waiting for a segment of time when there is a thin supply of what you are selling will yield the most traffic to your unit, and in turn likely the highest possible sale. If the market has an oversupply of your style of unit, best to hold off selling. If suddenly inventory thins out, this is a prime opportunity to