Our mission at Cobalt Creek Property Management is to help Colorado landlords get the most out of their rentals, so we’ve put together a list of four things to consider before renting out your Denver condo. Renting out a condo is an excellent way to earn extra income, but it can be a very different process than renting out your typical apartment.
Condo Rental Challenges
Conventional wisdom is set against condos working well as rentals, mostly because of all of the extra fees: association fees, agency costs, management fees, etc. Dues will eat away at your cash flow, but in a well-run association, you’ll get a variety of benefits in return, such as utilities, insurance, and trash collection. You can also pool resources with other condo owners for more extensive repairs and capital projects.
For some landlords, a condo association is a trade-off for fewer maintenance responsibilities in exchange for dealing with a bureaucratic entity. Associations function like small-scale democracies, and its politics can range from mild to boiling. One condominium board can be generally cooperative, while another may have active lawsuits between its members.
4 Condo Rental Considerations
The first thing we advise prospective condo landlords to do is read through your association’s CC&Rs (covenants, conditions, and restrictions). Each condo has its own rules, and the letter and spirit of these rules will determine your ability to rent, under what conditions you can lease, and how profitable your rental can be.
These documents will have most of the answers you’re looking for as you research your condo’s potential as a rental.
- Learn about renting and lease restrictions, especially any conditions you must meet as the owner and restrictions that will limit your pool of potential tenants, like age requirements in a senior housing community.
- Find out if your condo is warrantable or non-warrantable. This will influence what kind of mortgage you can get, your interest rate, and how much you will need for a deposit.
- Does your condo association have monetary reserves? If not, you’ll need to set aside funds in case of special assessments.
- Research what property taxes you’ll be expected to pay.
Get Advice Before You Buy
If you want your condo to be a successful rental, you’ll need to do your homework before buying. A key factor will be finding the right condo and a strong association. Another factor will be hiring a knowledgeable and experienced property manager. Before making an investment condominium purchase, ask us about our Real Estate services.
How Condo Property Management Can Help
When you partner with a property management company, like Cobalt Creek Property Management, you can leverage their professional knowledge of local and neighborhood-specific laws to make the renting process more straightforward.
Your property manager also has a toolbox of strategies that will help you get the most out of your condo, even when you have association frees to offset. If your condo is in a senior housing community, for example, there are unique variables you’ll need to evaluate during the income verification stage; our property managers have experience screening renters of all ages.
Get Started Today
As your experienced Denver property management company, we do more than market your condo and screen tenants. At Cobalt Creek Property Management, we handle rent collection, maintenance requests, and (should the need arise) evictions for all types of properties, including condos. We can even help you buy your next investment property. Contact us today to learn more or schedule your consultation.