How To Rent Out a Single Unit at an Apartment or Condo
While many rental property owners manage entire apartment complexes, you may just be interested in buying a single apartment or condo unit to rent out. This can provide some extra monthly income and serve as a stepping stone on your way to larger real estate investments in the future.
Getting started can feel overwhelming, but with our advice, you can successfully rent out a single unit at an apartment or condo in Maryland, Virginia, or Washington, DC.
In the meantime, consider these tips for renting out a single apartment or condo unit.
Learn About Any Restrictions
Before you buy a condo or apartment to rent out, contact the condo owner association (COA) to learn about rental policies and restrictions. For instance, some associations put a cap on the number of units that can be rented out at once.
If the complex is already at its rental limit — many require owner-occupied condos to comprise 70% to 75% of all units — you may need to look elsewhere.
You should also know that COAs can decide to eliminate owner rentals at any time. If this happens, your tenants would be ordered to vacate when their lease ends, and you would either need to sell your condo or move in.
Also, if an extensive repair is required, the COA board of directors could increase your fees without your consent, draining much of the extra cash you hoped to make from renting out a condo unit.
Learning about these restrictions and stipulations will tell you whether you want to become involved with one COA over another.
Take All Expenses into Account
If you find a high-quality condo rental to purchase, you’ll need to set a rental rate that covers all of your monthly expenses. These include:
- The mortgage payment
- Condo owner association fees
- Property taxes
- Maintenance and repair costs
- Potential legal fees if eviction is ever required
Then, add about 10% to 20% to your monthly costs so the rental rate doesn’t merely break even with your expenses. After all, the goal is to have money left over so you make a profit for your efforts.
Hire a Property Management Company
You can still benefit from renting out an apartment or condo without acting as the landlord.
Hand over responsibilities such as marketing your rental unit, screening tenants, collecting rent, handling tenant complaints and maintenance requests, serving eviction notices, and more — all while remaining the owner and benefiting from a boosted monthly income.
Apartment & Condo Property Management in MD, DC & VA
Whether you own one or 100 rental properties, acting as the landlord can be stressful and time-consuming. Coakley Realty is here to take the burden from you, so you can free up your time to pursue other investment ventures in the future.
If you’re still in the process of purchasing a single unit at an apartment or condo, contact our professional team to assist you every step of the way. We can help you buy the property, draft a lease, and get your first tenant locked in.
Apartment Rental FAQs
Can I rent an apartment I own?
Condo owner associations often limit the number of apartments or condos that can be rented in a building in order to maintain a high proportion of owner-occupied units. Some COAs may not allow apartment rentals at all. Always check the bylaws and restrictions of your COA before you consider renting out your apartment.
Can I buy an apartment for rental income?
Yes, you can buy an apartment specifically for rental purposes. But it’s important to check with the building’s COA before buying to ensure that rentals are allowed and determine what restrictions apply. If the organization’s requirements are too restrictive, you can always opt for an apartment in a building with a more reasonable COA.
Do I need a property manager for my rental condo?
Not necessarily. You can do all the work yourself to keep the apartment occupied and the tenants happy, but it can become almost like a full-time job. By letting a property manager do all the apartment advertising, tenant screening, lease management, maintenance, repairs, rent collection, and more, you can simply enjoy the extra income.
And because of the professional upkeep and more consistent occupancy, you can earn a higher rental fee that offsets much of the cost for the property management firm.
Do I need a Realtor to rent out my apartment?
It’s best to work with a Realtor to rent out your apartment. Realtors will have a thorough understanding of the rental market, and they can connect you with the right tenants to fill your apartment faster. Many common rental issues can be avoided by choosing quality tenants.