What to Consider when Renting Your Condo
When you originally searched for Condos For Sale in Soho NYC and made a purchase, you may not have realized that it was really the beginning of your real estate investing career. While you may have planned to have it rented out for a few months while you were vacationing, you likely never considered the lucrative investment property it could turn into. However, renting out a condo, no matter where it is located, may not be as easy as you originally thought.
Before you begin advertising that your condo is for rent, you should consider the following:
Could the renting of your condo be hindered by rental caps?
A rental cap, which is able to be imposed at any time, will limit the total number of condo owners that are allowed to rent out their condo at the same time. The rental cap is designed to help and keep the demand for purchasing a unit in the building up, which means that you may be unable to rent out your condo if there are already a number of other owners that are renting. Additionally, if you are a fairly new condo owner, then you may be put at the very end of the waiting list for owners that desire to rent out their property.
Will it be difficult to rent your condo due to the building’s rent restrictions?
There are a number of buildings in more up-scale neighborhoods that will require condo owners that rent out their property to set the rent above a particular amount in order to maintain an exclusive clientele. It may take extra time to find tenants that are willing to pay this additional rent.
Are FHA policies going to be an issue?
There are many buyers that utilize FHA loans since they only require an initial down payment of 3.5 percent. However, in order to use these loans to purchase a condo, the building has to be FHA certified, which means that the building must meet a certain number of requirements, which include:
- At least 50 percent of the residential units in the building are owner occupied.
- The units are not rented for fewer than 30 days.
When you take the time to find out about any rental restrictions that are imposed on your condo early on, it will likely save you some headaches and frustration down the line.
If you are looking for Condos For Sale Soho NYC, consider the information that can be found at the One Vandam website.