For modern professionals, investing in condos can make smart sense. Even in some of the worst economic downturns, condos can also make sense as short-term, mid-term, or long-term rentals and make a viable real estate investment. Regardless of the circumstance, there are many advantages of condo rentals that can make them a successful business or side ventures even if it’s not your primary career. However, there are multiple aspects to consider in determining if it’s right for you. Here are a few insights to think about when deciding on a condo investment.
Condo Location Is Key and Can Impact the Rental Success
The location of the condo can make a big difference in determining whether or not it will be successful, and even how successful, in a rental market. For example, even in a popular location, the specific location of the condos can significantly impact how popular they are, how often they are rented out, and what price the rentals can go for. Condo locations within walking distance of major attractions, nightlife, shops, restaurants, or beaches, for example, may be much more popular and garner more rentals and higher rental income than those that require driving to all the hot spots the area offers.
You’ll also want to consider how many months out of the year the condo will thrive for a vacation rental market if you’re looking into short-term rentals. In the winter months, for example, many locations will significantly slow down in terms of their rental business. Whether people are budgeting for a vacation or looking for a long-term rental as a residence, the location can make a big impact.
You Can Estimate Many of the Costs Upfront
While at a glance, investing in a condo can seem fairly straightforward, there are multiple costs to consider in determining whether it’s the right option. Fortunately, you can estimate most of these upfront when investing. Along with the cost of the property itself, you’ll need to consider if renovations are needed and if you’ll need to acquire furnishings. Consider association fees and any other costs that are required to be part of the condo community. Don’t forget about insurance, along with any specialty insurance coverage, such as flood or hurricane insurance.
Add in cleaning and repair fees, as well as any extras that may really make the condo stand out, and you’re looking at a sizable list of expenses to consider. That being said, many successful condo rentals make substantial profits even with the various expenses, so it’s all about looking at the specific costs, the potential, and the bottom line to decide if it’s right for you.
Decide Whether You’ll Manage the Property or Use a Separate Company or Service
You also need to consider whether you’ll handle all the booking and property management aspects, or if you’ll go with a property management company. While a property management company can significantly reduce the time and stress of managing condo rentals, you will also need to consider a portion of any rental income will be reserved for them.
There Are Many Different Types of Condos to Meet Investors’ & Renters’ Needs
Another aspect of condo investment is that there are so many options that make it appealing for investors and renters. There are options for many budget levels and unique spaces that meet different renter’s needs. If you opt for Main Line apartments, for example, you’ll get an offer of larger penthouse apartments with beautiful views alongside affordable efficiencies that make sense for any investor’s budget.
Amenities Make Condos Shining Stars When It Comes to Rentals
Most condos have plenty of amenities to offer, from pools and workout facilities to things like activity centers. With all the many perks that go with owning a condo, they are shining stars to attract potential renters. Compared to a single-family home rental where there are fewer community amenities, the condo has a lot to offer those looking for short-term rentals or vacations.
There’s No External Maintenance to Worry About With a Condo Rental
While with a property like a single home or duplex, there are many external maintenance items to be responsible for, that’s not the case when it comes to a condo. Anything external is usually handled by the condo management. This also extends to landscaping, yard work, green space maintenance, snow removal, and more, so there’s less for condo owners to worry about.
Condos Can Double as Vacation Homes for the Investor
One of the huge strategic advantages of investing in a condo is that the property can double as a vacation home for yourself and/or family members if you so wish. Using the condo rental as a business helps offset the costs greatly, so even if you thought a vacation home was out of your budget, that’s not necessarily the case when you invest in a condo as a rental. Though there may be dates you do not use it for personal use when they command the highest rental rates, there is usually still plenty of opportunity to use it throughout the year.
Offer Discounted Rates to Friends and Family Members
Another aspect that’s beneficial about owning a condo as a rental investment is that you can control the rates. If you’d like to offer discounted rates for friends or family members, then, you are able to do so. This can allow you to extend your generosity to those you care most about but still use your condo rental strategically and make the most of prime rental times throughout the year.
Condos Can Make Smart Investments for Today’s Professionals
Condo ownership can be a smart business investment for today’s professionals. Not only are various rental markets filled with opportunity, but there are numerous benefits and advantages of condo rentals that make this a unique and potentially successful area to get involved in. Once you’ve considered the pros and cons, you can decide if a condo rental investment is right for you.
