Regardless of whether you live in a house or condo, owning an income producing condo can prove to be a very savvy real estate investment.
Condos can be attractive investments because they usually require very little maintenance by the owner. However, managing an income property is not as easy as offering a short-term rental on your principal or vacation property.
In many cases, legal agreements, bylaw compliance and condo rules and regulations come into play. Also, you will need to decide whether to be a hands-on landlord, or to hire a property management firm to handle a variety of services, including dealing with tenants.
Property managers can relieve you of handling most of the time-consuming aspects of landlord/tenant relations, including interviewing prospective tenants, collecting rent and managing routine repairs. They may even handle tax compliance and deduction eligibilities, property and liability insurance, and even basic legal requirements. However, hiring a property manager will not exempt you from your obligations as the condo owner, and your requirement to comply with condo corporation rules. It is also important to note that management fees added to condo fees will affect your monthly net income.