4 Steps to Make Money By Renting Out Your Condo
If you are buying one or more Irvine condos for sale, there is a fine chance you can make money due to the high rental demand in the city. Irvine is a beautiful city to live in, adjusting properly the level of comfort residents look for in lifestyle, which insists on amenities, convenience, pedestrians’ ease of access, and high quality of life. Condominiums are in high demand from potential tenants. With the ongoing demand for condos in 2017, there are chances to encounter several challenges as a landlord. Here are five steps you can still make money by renting out your condo.
1. Get Approved Rentals from Your Condominium Association
When American housing market crashed in 2008, condo boards and associations in the country took up a carefree attitude toward rentals. As now the market has considerably recovered, your condo association may have modified its bylaws and implemented some restrictions like rental caps and percentage of building that tenants can occupy. Review the bylaws carefully before you present the board your proposal in order to ensure your request some basis.
2. Get to Know the Market
Generally, you should consider marketing your condo units to such tenants for whom money cannot be an issue like high-level federal government employees, company executives, and senior UC Irvine researchers. If your condo board allows six months lease contracts, you can offer your unit to seasonal tenants from Europe.
3. Inspect Tenants’ Backgrounds
Landlords are at a high risk of having a tenant who can get to be a neighborhood nuisance or extremely financially irresponsible. In this case, trusting your instincts may not be a solution. You may think that a senior UC Irvine researcher may not trouble you, but his or her family might. Do a research if your potential tenants hold a history of responsibly paying rent or if their family members are known to get in trouble with the law.
4. Review Your Tax Liability
There is a fair chance that taxation can become a new issue in your life once you begin renting out your condo units. You will have to inform the assessor’s office that the subject property is actually generating revenue. You will also have to report your rental income next year before hitting the federal tax reporting deadline. You may be introduced to new sections of Schedule E of Form 1040 and therefore your overall taxes will be higher.
These steps do not include everything you can encounter being a landlord. As California is a complex rental market in terms of legal rights and responsibilities, you may need to get aware of it. Buy an Irvine condo for sale and take help from a reputable real estate agent to make some good money. You must also look for beautiful townhomes and homes for sale in Irvine if you are not very much interested in condo units.