Take Precautions When Renting Out Your Condo
Tags: Condo, Condominium, Leasing, Tenant, Landlord
Condo owners keen to rent their property are effectively becoming a landlord, so there's a few tips to keep in mind before prospective tenants move in.
First check whether your condo allows units to be rented. It should state as much in the bylaws or condo certificate. Some do, some don’t, some put restrictions on the number of units that can be rented or impose a minimum lease term.
In figuring out a monthly rental price, be sure to factor in all of your costs from your monthly mortgage payment to condo fees, taxes, insurance etc.
You’ll also need a lease or rental application form for the tenant to fill out and another credit check form. Or you can ask the prospective tenant to supply a credit report. You should also request a letter from their employer stating their salary and length of employment, to prove they have a stable income. For self-employed applicants, a Notice of Assessment from Revenue Canada will provide that income information. And for your tax records, keep track of all rental income and expenses.
Condo owners will also need to write an ad and be available to show the condo to interested applicants. Or hire a realtor to do the job.
It’s also wise to call your homeowners’ insurance company to tell them you plan to rent your condo so that a rider on your policy can be added. As a landlord, you are more liable to lawsuits.
Hire a lawyer to review the lease agreement and ensure you are complying with landlord-tenant laws. A well-written lease could save you time and money down the road if a dispute arises.
Finally, provide your tenant with a copy of the condo bylaws and urge them to read it thoroughly and then sign that he/she has received and read them.
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