We all are aware that investing in a rental property is one of the safest and quickest ways to generate income. But purchasing a single-family home to rent can be really expensive, especially if you are a beginner. When compared, condos are relatively cheaper, but do they make a good entry point investment?
What Is a Condo?
A condo is a privately owned residence within a large community or building. It can be a multi-story building or a single unit in a high rise with condo units above and below.
A condo can be rented out to tenants and can be used as an investment property. The concept of a condo is similar to an apartment, but the major difference is ownership. Individuals own a condo, whereas the apartments are rented out by someone who owns the entire building.
The owner of the condo has to pay the monthly maintenance fee. This fee covers all the maintenance and upkeep of common areas that are shared by all the owners of the community.
Should you buy a condo as an investment property?
It depends on many factors such as financials, location, amenities, and more. No matter what, the location of a condo is the most important factor. This is why it is important to choose a desirable location.
In addition, the ROI (return on investment) of the property needs to match your investment goals.
The best way to determine whether condos are a good investment or not is by understanding the benefits offered by each condo to the owner.
Less maintenance to worry about
One of the key benefits of owning a condo is that you don’t have to worry about exterior maintenance. There are people who will take of that on your behalf. Neither you nor your tenants have to bear any responsibility to remove any snow or mow the lawn.
As the owner, you don’t have to worry about big expenditures. You own the space inside the condo, not the outer structure. All you have to take care of are the things inside your property.
The association is created that takes care of all the expenses and the hassle of building maintenance. But this is not a rule. Each association has the right to decide which condo owner is responsible for what. So, it is best to talk to a representative before making any investment.
Condos are less expensive capered to a single-family home or a townhouse. However, you have to pay a monthly maintenance fee that keeps the community in its best condition. So, when you rent out a unit, you should also cover the monthly fee. The purchase price of the condo is low because the monthly fee is also considered by many home buyers.
Another major factor that people consider is the amenities people get to enjoy when they live in a condo. Condo owners have access to clubs, swimming pools, gym, sports areas, and more. These perks attract a lot of tenants which helps you in keeping your unit rented. A condo with attractive amenities is always in high demand. This means, a quick turnover when your old tenants move out. Short term vacancies are the best when it comes to managing cash flow.
Pride of ownership
Condos are usually occupied by the owners. The bylaws often state that only a few percentages of owners rent out their condo unit. This translates into the pride of owning a high-class property that encourages community. Owners take better care of their property than the renters.
Condos are known for their enhanced security. For example Fort Myers Condo Rentals, you usually need a key card to access the building before getting to your front door. Each unit is equipped with an intercom that can be used by the residents to buzz in any visitors and guests. This added security gives peace of mind to the residence and makes them feel safe. Good security attracts a lot of people and they are willing to pay a premium price if they are getting good security.
There is no right or wrong answer when it comes to investing in a condo. If you think the value of a unit and market is on the upswing, then you should consider investing. With a condo, you need to understand what you need and what you will get before you invest your money in a condo. As a real estate agent, you should study the market to understand its resale value. Also, you need to understand the rules and regulations of the property before many a decision. The more information you have, the more confident you will feel when it comes to investing in a condo