Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
One of the most common issues that New York condo owners face is whether they should rent out their property. Whether using an Airbnb or renting out your entire condo for a yearly lease doesn’t matter; it will still be a significant move. The truth is, renting a condo isn’t something to be taken lightly. What you get out of renting depends on what you put into it. Contrary to popular belief, renting a condo can quickly turn your life upside-down if you’re not doing it smartly. It can be a great source of income if done correctly. Before considering a “for rent” ad, ask yourself if you have considered the following issues…
Before considering renting your condo, you must check your HOA’s rulebook. Many New Yorkers make the mistake of thinking that their HOA will be okay with it, only to discover that they were wrong.
If they don’t allow it, you may be forced to evict the renter, pay fees, and deal with significant levies against your property.
If your HOA allows it, find their exact policies because there may be protocols to rent a condo.
Technically, condo associations can’t evict you as a homeowner. However, they will make a point of making your life hell. It’s often not worth getting caught, even if you think it can skate under the radar.
Renters can be respectful to your properties but also be a nightmare. If you pick the wrong renter, you may have an uphill battle removing them from your home. Worse, they may cause severe damage to your home! At the very least, you should ask for references, proof of income, and a credit check.
Vetting remains one of the most significant issues new landlords face. It’s expensive to do through traditional means, but it’s the only way to help reduce the risk of having a bad renter.
Realizing that the rental terms can also make a considerable difference is essential. Like on Airbnb, many people find it easier and safer to rent out their condos for short-term stays.
This reduces the chances of forcibly evicting someone and the need to deal with legal disputes.
Another common way to make money with a condo is to rent a room rather than the whole condo.
This gives many landlords or condo owners a little peace of mind. After all, they can immediately shut down a party their renter holds without permission if they live there, too.
We all hope for a great renter; in most cases, we’ll get it. However, not all renters are going to do well.
Some will be downright awful, and the owner will deal with eviction. Sometimes, it may even result in a lawsuit, and it’s not something someone who already works 60 hours a week is willing to handle.
This is always a risk if you rent your condo to someone. Even if you think you know the person, you don’t. Are you willing to take that risk? More importantly, are you financially capable of handling a lawsuit or an eviction? Are you ready to deal with the damage done to your home by a disgruntled renter?
Landlords are expected to handle repairs and ensure that they rent out a livable property.
Therefore, repairs can be needed at any time of day, and some can’t wait. Before you rent, ask yourself how you will handle this and what you need to do. It may shock you to discover how much of a burden this can be.
Sometimes, it can be hard to figure out whether or not renting a condo or a co-op is a good move.
Therefore, contact a NestApple broker to find your options or help find your first renter. We are here to help you determine your best course of action.e