If you are thinking about purchasing a condo for rental income there are some things you will need to look at before you can make any conclusions. We are using condos at Singer Island as the inspiration for this conversation but these considerations will work on any rental property investment.
Is There Demand for Rental Property?
This is the most important question to answer. You need to establish demand for your rental property before you can look at purchasing a condo or any other type of investment property. Demand is not merely the desire to live in the property but the capacity to pay the rental amount being charged. You could speak with a reputable real estate agent who can provide you with an analysis letting you know what the local rental market looks like and whether it makes sense to purchase a rental property. Provided the report comes back favorably you could start looking at condos in the area that are for sale.
Benefits and Costs Linked to Renting a Condo
A condo has a monthly maintenance fee which must be paid regardless of whether the unit is rented or not. This fee will take a bit out of the rental income you would derive from the property, there may be bylaws inside the condo ownership agreement which restrict whether you can rent out your unit so that is another consideration. Aside from those two items using a condo to generate rental income has some benefits, typically there is no maintenance for you to worry about so that gives you more free time to enjoy life. Prospective tenants also prefer condos because it usually comes with facilities like a pool, gym, and sauna which are highly sought after. What you need to do is find a condo that is going to give you the best amenities at a price that can be easily recouped by renting out the unit. If you are proactive you should be able to turn a profit with your condo rental unit.