Posted on: 8 September 2015
Owning a condominium in a popular vacation destination is great for several reasons. The first reason is it gives you a place to stay when you travel. The second reason is it gives you a way to make money. If you are concerned that you cannot afford to purchase a condo, you could consider using it to make money while you are not there. If you can do this, you might be able to afford to buy one after all. Here are the steps you would need to take if you decide to purchase a condo and rent it out to travelers.
Research The Legalities First
Before you rush out and purchase a condo for sale under the assumption you will rent it out, you may want to research this first. While renting a property is typically fine, you should check with the local housing department first. They can tell you if you will need a license or permit to do this, and they can give you instructions to help you properly protect yourself if you decide to do this.
Take The Right Steps For Protection
The second step you will need to do is come up with ways to protect yourself in this endeavor. You could hire a real estate attorney to help you with this step, and here are some of the issues you will need to address:
- Insurance – When you rent your vacation home to other people, you must have the right type of insurance on the home. This type of insurance is typically called landlord insurance, and it will cover normal damages, and it may also cover damages caused by renters.
- Contract – You must also create a contract you will use with your renters. This contract should state the rules renters must follow, their obligations, and the costs. It should also clearly state your policies regarding deposits made on the property and how damages to the unit will be addressed.
- Rental charges – Coming up with an amount to charge for your vacation home will also be necessary. You may want to come up with a schedule for nightly rentals, weekend rentals, weekly rentals, and monthly rentals.
Determine How Payments Will Be Accepted And How You Will Find Renters
Another step to take is coming up with a way to accept payments from renters. There are a number of options, but keep in mind that most people will want to pay with a credit card. You could purchase a card reader to use with your phone or laptop. You could also choose to accept payments by mail, such as checks or money orders.
If you want to make this process easier, you may want to create a website to use to advertise your property. If you do this, you could accept credit card payments online too.
In addition, you will have to come up with methods for advertising. If you cannot find people to rent this home, you will not make any additional money. You could consider advertising on social media sites and classified ad sites, or you could hire a local real estate agent to help you find renters. Another option is to hire a property management company to find people for you.
Hire A Property Management Company
Finally, you must consider how you will maintain the property and the renters if you do not live near this vacation home. Property management firms can handle all the duties needed for you, and this includes the following:
- Lawn work – The yard at this condo will need to be mowed and watered. Someone will also need to trim the weeds and bushes and maintain the flowers.
- Cleaning – After a renter leaves the condo, it must be thoroughly cleaned before the next person can stay there. Cleaning duties also involve washing the towels and linens and replacing them after each stay.
- Repairs and maintenance – Condos will need repairs and maintenance from time to time. This can include replacing light bulbs, fixing broken plumbing issues, and cleaning the gutters.
- Meeting with renters – Someone will have to meet with renters to exchange keys when they arrive and leave, and a property management company can do this for you.
Buying a condo for sale is a great idea if you want to have a place to go on vacations, but it can be a great way to make extra money too. If you are interested in buying one, you can begin looking at condos for sale in the location you would like to vacation at. For more information, see a website such as citycreekliving.com.Share