Condo living is for those who want to enjoy a wide range of amenities, such as a swimming pool, a fitness center, and other recreational areas, without the need to maintain them. Individual condos can be rented or owned by tenants in most communities.
condominiums are subject to the maintenance and upkeep of exterior structures and facilities. This is done by a condo owners association (COA), or property management companies that charge tenants or owners a monthly fee. This is a great way to save time and money, as opposed to living in a single-family house.
Tenants are responsible for maintaining the interiors and taking responsibility for major repairs. Owners usually assume this responsibility. Which is the best choice? Find out which option is best for you.
Renting vs. Owning Your Home Renting vs. Owning
Many people wonder what the difference is between renting and owning a condo. Condos are more affordable than renting or buying a house, which makes them an attractive option for many looking to make a home. Both tenants and investors will know what monthly payments they must make. When the agreement is short-term, it is important to determine which party will pay for COA fees and utilities.
Condos are a great investment because they allow owners to save substantial money on exterior expenses such as painting, pressure washing, siding replacements and other major maintenance. The same amenities are available to renters. This makes a condo rental affordable while also avoiding the hassles associated with maintaining a traditional home such as trimming trees and lawn maintenance. Both options will likely fall within the same price range.
If the owner is a homeowner, they may be eligible for interest and mortgage tax deductions. The structure of a home mortgage may determine whether owners rent an investment condominium long-term. If so, they may not be eligible for tax deductions. If the property is claimed as their primary residence, they can deduct any out-of-pocket expenses and mortgage interest from their taxes.
Owners Can Rent a Condo for Passive Income
If the COA and community bylaws allow it, buyers who do not intend to live in the property full-time or part-time can rent it out. Renting a condo can be a great way of making passive income, particularly if you have the budget for professional management. Long-term rentals are typically half the price of short-term rentals, which can be as high as 25%.
Short-term rentals can be rented by the week, for 30 days or less. These rentals are more popular in tourist areas, so owners may be able to make more by renting their property out on a shorter-term basis. Even slow seasons can be balanced by higher rates during off-season tenancies.
Long-term rentals can be rented for 3, 6, or 12 months. They offer a steady source of income and almost all the security you would expect. Owners can also save money on utilities, which long-term tenants usually have to pay.
This post was written by a real estate expert from the Dotoli group. Josh Dotoli is Paramount Residences #1 Selling Realtor with nine sales in 2021, 3x more sales than any other Realtor selling in the building. The Paramount Residences enjoys a prime beach area location. It is a Ft. Lauderdale oceanfront condo located across from the beach. Looking for a condo at Paramount Fort Lauderdale For Sale? Contact us today!