But first, a few facts:
TAXES - As an owner occupant of your present residence, you are privileged to a tax rate which is 30 percent lower than that of a non-owner occupant. Typically, you can only claim one residence as your principal residence, and you must live in it.
RENT - Your condo will only rent for true market value – not what you “want” to get in rent. Consider what you will be paying in principal, interest, taxes, insurance and your monthly association fee and decide if that amount will be covered by your rental rate.
DAMAGES – You can only collect 1.5 times the monthly rental rate for a security deposit.
ASSOCIATION – Ask your condo association if they permit rentals. You will also be responsible for making sure that your tenant abides by the association rules and by-laws.
MANAGEMENT – if you will be relocating out of state, you will want a professional to manage your rental. The typical cost is 10% of the monthly rent. Edward Surovell Realtors offers the following professional services, and I can help you with this:
- Inspect the property and consult with the owner.
- Recommend a rental rate, security deposit and lease terms.
- Advertise and seek tenants.
- Briefly interview all prospects prior to touring the property. Conduct showings of property to prospective tenants.
- Verify prospective tenant credit history and reference.
- Prepare and execute the lease with specifications to the individual property owner.
- Collect all rents and enforce collection of rents.
- Collection of security and other deposits.
- Move-ins and move-out inspections.
- Take legal action on your behalf if necessary to collect past due rents or evict tenants.
- Pay mortgage, insurance, taxes and utilities if requested.
- Lease renewals
- Maintenance requests, including emergency maintenance.
- Code work to meet governmental requirements for Certificates of Occupancy.
- Supervise maintenance repairs.
- Provide monthly and year-end statements of income and expenses.Contracting by bid and supervision of major improvements and repairs to the property.
WHAT DOES A REALTOR DO? –
- Lists your condo on the Multiple Listing System (MLS )
- Lists your condo on so many websites that they are too numerous to list here
- Screens and qualifies potential tenants. Most of the time, the showing will be by a Realtor who sees your condo rental listing on the MLS. Your Realtor will verify their license to assure that they are an active, licensed Realtor, as well as pre-qualify the prospective tenant.
- I hold my rental listings open on a regular rotational basis. I have had good luck with this.
- Once a tenant is found, prepares all necessary paperwork to bring the lease to closing, interfacing between all parties and consulting you every step of the way.
- Stays with you after the sale/rental to assure that all of your needs are met.
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