Renting Out a Condominium Unit – What You Need to Know and Prepare For

There are at least two reasons why people purchase a condominium unit. One is to have a place to stay (obviously), and the other as a source of profit by renting it out. There are some companies like Airbnb that looks for such units to lease out to travelers given that some travelers find hotels too costly. However, there have been several stories circulating that make condo unit owners wary of renting out to Airbnb and other similar companies.

First of all, be aware of the condominium’s policy on renting out. Some may not allow it. To do so could get you evicted. It would be a good idea to ask this while you are prospecting. Be aware of this as well when you are about to sign the contract.

On a larger scale, this will also depend on any existing laws or ordinances that prohibit the practice of renting out condo units in the city you are residing (if there is any). While this is the case in some countries, it would be a good idea to consult or look up any local laws that may prohibit this practice lest you pay a hefty fine.

Then there is also the character of the renter. Condo units are not only a financial investment, but an emotional one too. Owners put a lot of time, effort and money to turn the unit into a home. The problem here is Aibnb does not appear to screen prospective renters and unit owners have no control over it.

It is a given unit owners would like to have someone who would take good care of their unit and everything inside it (and not steal or pilfer anything by the time they leave), to treat it with the utmost respect.

It was not until recently (2014), that Airbnb has finally addressed it by implementing the Host Guarantee policy. This guarantees protection of unit owners from damage or theft amounting to $1,000,000.

On the brighter side, there are also advantages of renting out your unit. One is you get to meet new people. This also allows you to expand your horizons, especially if they are foreigners. Your unit would become a center of cultural exchange.

 

Featured Image Source: Urban Toronto

 

 

Aaron Ronquillo

Quizzer, Practical Shooter, Martial Artist, Movie Buff, Avid Reader, Amateur Foodie and Photographer, Cat Lover; Someone with a wanderlust; got a keen eye for detail, trivia; enthusiastic but cautious; patient, calculating