Investing in a rental property such as a condo can be a great investment strategy. You can earn good returns and that allows you to scale things up and invest in more property. However, you need to be well prepared to make it work, particularly if you are investing in a foreign property. One way to prepare is to hire a property management company.
A good management company can take care of everything, from finding tenants to handling repairs, saving you time and reducing stress. They have the skills and resources to manage day-to-day tasks, ensuring your property stays in great shape and your tenants are happy. In this article, we will give you a checklist to get familiar with that will help you hire the right company.
Do Your Research
Before buying a condo, it’s important to think through several key points to make sure you’re making a smart investment.
Look at current trends and future predictions as market research is one of the most important steps to take before buying. Understand the growth potential and appeal of the neighborhood. For example, if you’re thinking about condo rental property management in Etobicoke, check out the area’s development plans, amenities, and overall attractiveness to renters.
See if the investment makes financial sense by calculating potential rental income against costs like mortgage payments, property taxes, maintenance, and condo fees. Look at different financing options and interest rates to find the best deal. Make sure your budget matches the investment, thinking about both short-term and long-term expenses.
Inspect the Property
When buying a condo, it’s essential to inspect the property carefully to avoid unexpected issues later.
Start with the building condition. Look closely at the common areas and the exterior and check for any maintenance issues like peeling paint, cracked walls, or worn-out flooring. If things look worn, then there might be some maintenance issues that you don’t see that will require repairs. This will surely raise your condo fees and impact your profit margins.
The individual unit should also be in good shape to prevent unexpected repairs later. Focus on expensive potential repairs, such as plumbing, electrical systems, and heating and cooling (HVAC). Also, check the quality of appliances and fixtures. Ensure items like the refrigerator, stove, and lighting fixtures are in good working condition.
Review the Condo Association
Checking the condo association is very important before you buy. The association manages the entire building, and how well they do this can affect your investment.
First, look at the condo association’s finances. Check their financial statements and budgets to see if they manage money well. Look for any debts or special fees they might charge. Good finances mean they can handle repairs and maintenance without surprising you with extra costs.
Then, understand the condo association’s rules and regulations. These rules can affect what you can do with your property. For example, there might be rules about renting out your unit, making changes to it, or even about having pets.
