Whether you’re a first-time landlord or an experienced investor, renting out your condo can be a bit tricky. If you’re in a popular neighborhood and have a condo for rent, finding a tenant is the easy part.
Navigating the rules might be a bit tougher.
If you’re thinking about renting out your condo, our guide will help you understand what that entails and how to prepare the condo for potential renters.
Make Sure Your Condo Association Allows It
Like homeowner’s associations, every condo association has its own rules and regulations. Some may not allow owners to rent out their condos, while others may have stipulations regarding who can rent in the building. There may be rules about pets that you need to make certain your tenants follow. Make certain you understand all of the regulations your condo association has regarding renting before you list your condo. Don’t let the list overwhelm or deter you from listing it; it’s setting you up for success to know what regulations exist before renting out the condo.
Look at Insurance and Tax Regulations
Check with your insurance company to learn how your homeowner’s policy works in terms of renting. Most carriers have a landlord policy but usually have some nuances to the coverage you have to look out for. Will they cover your condo if it sits vacant? If an accident occurs, you want to make certain you’re protected.
Also talk to a CPA or other tax specialist to learn about the different taxes you will need to pay. You’ll need to keep track of any expenses you have that are directly related to your condo and preparing it for rent. You may be able to write some of those expenses off. However, be prepared for your taxes to go up since you will have to pay taxes on the rental income you make.
Preparing Tenant Paperwork
It is absolutely vital that every tenant you have signs a lease. This document should clearly outline the landlord/tenant relationship between the two of you and list all rules that apply to your condo for rent in Chicago. There are a lot of examples and templates out there, but you want to make certain the lease you use covers everything related to your condo. It’s a good idea to work with a lawyer when writing your lease or at least have one review it. You could alternatively take the easy road and just hire professionals, like Brixbid.
Find a Background Check Partner
You’re going to want to do background checks on every potential tenant to make certain they don’t have a criminal record or history of unpaid rent. There are a number of companies out there that will perform this service, but they do charge. You will want to compare what they offer with their cost before selecting one to work with.
Decide How Tenants Will Pay You
If you don’t live in Chicago or simply don’t want the hassle of meeting your tenants monthly to collect their rent, you need to determine how they will pay. Many people prefer to pay online rather than by check, so you will want to look into various options for that. Decide which services you will accept and learn about those services, including what fees they will charge you. You may even want to consider using special software designed for landlords.
Prepare Your Condo
Finally, you will want to make sure your condo is ready for tenants. You will want to perform any necessary repairs and perhaps update a few things. You want everything to be perfect when showing the condo to potential tenants. No one wants to move in somewhere and worry about plumbing issues or appliances that aren’t working. Save yourself the headache of working around a tenant and get these issues resolved before are living in the condo.
Sign up with Brixbid
Finally, if you want to rent out your condo with no hassle, let us help you! Brixbid is a new way of attracting potential tenants. You upload all of your information to our website, and potential tenants bid what they’re willing to pay in rent. If you accept the winner’s proposed monthly rent, you have yourself a new tenant! Contact us to learn more about how Brixbid works and why it’s the perfect way of renting out your Chicago condo!