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5 Benefits Of Acquiring Condominium Apartments For Rental
When compared side-by-side with a landed single family house, a condominium can stand out in many ways for an investor.
A stand-alone house might be able to display it’s individuality and uniqueness from the exterior. That is almost as much extras as it can offer when compared against a condo apartment.
If you are standing on the sidelines on this one, maybe the following benefits of condominiums as rental property will convince you:
1) Less maintenance required
It’s not that condominium apartments break down less often than landed homes. It’s just that a lot of fixtures problems and maintenance issues will be handled by the homeowners association.
This factor is so significant alone that many investors might be leaning towards a condo just from the extra free time they would have.
You would of course have to pay management fees for these services.
But these charges are low compared to a professional management company. The association might not be able to take responsibility over every problem you tenants face. But they’d pretty much cover all issues that are the more troublesome.
2) More affordable
A condominium or townhouse is usually more affordable compared to a single-family house with a similar floor area in the same vicinity.
This is not always the case. But most of the time, the above mentioned is true.
A low priced studio apartment or shoebox apartment for example, offers a new real estate investor an easier entry into the industry. This in turn will allow them to learn the trade and get familiar with landlording before jumping head-first into a bigger purchase in future.
New condominiums often conduct sales launch events with a lot of fanfare. And this is bring banks and lenders into the picture to offer attractive mortgages with discounts and freebies to buyers.
So if lady luck is on your side, you might end up with a less expensive house with cheaper financing.
3) Access to facilities and amenities
You don’t need to build a pool in the backyard or set up a gym in an extra room to attract tenants.
Most condominiums come with large swimming pools, gyms, tennis courts, event rooms, etc. Some even have their own karaoke lounges and dog pools.
These are great selling points that can help you close a deal with a prospective tenant.
And we haven’t even mentioned the extra security.
It sure offers peace of mind when you know that outsiders will not get free access into the property. They will at least have to get past sleeping security guards to intrude the grounds.
4) Have the community manage tenants’ behavior
Sure, you will have your own set of rules for occupants in your apartment.
But other than that, your tenants will also have to abide by the rules of the community in the condominium.
This can do wonders in enticing good behavior.
A tenant might go up against you when they don’t like your own rules. But they would seldom go up against the whole community just to challenge the standards of the place.
This is also a great excuse for you to implement and enforce rules.
You might only have to say “It’s what the people here expects…” and get your tenants to behave appropriately.
5) Easier to scale your business
If you have somehow acquired a great condominium that’s bringing you good profits, the smart thing to do is to double-up or triple-up on your stake.
Since you already know the place inside-out and made friends with people in the condominium, getting an extra unit or two to scale up your business could be an easy decision to make.
With a higher stake in the development, you might even be able to have more say in how the condominium is run.
If you somehow work you way up to a respected position in community groups, your tenants might also think twice before double-crossing you in future.
Other than that, your “friends” in the condominium could be your eyes and ears.
There are of course… also drawbacks with condominiums. And it really depends on your investing preferences to learn whether they are the right fit with your philosophies. However, they are sure a great start for new investors.