A downtown condo in Toronto can be an excellent investment that grows in value over time. But it needn’t be a “lazy” investment that doesn’t bring you income. If you use your condo yourself at certain times during the year, and are away at others, you may have thought that renting it out was off the cards. Airbnb horror stories and being out of town may have made you think that short-term rentals are impractical too. But that’s not necessarily true.
Besides this, there’s the option of leasing your condo for more extended periods – especially if you’re unlikely to need it yourself during that time. Should you consider this option? That depends on your circumstances and whether you’d prefer not to leave a furnished apartment in the hands of tenants. Read on to find out how to realise income from your condo with hardly any effort.
Longer vs Shorter-Term Rentals
Professional condominium property management companies in Toronto are in your area and won’t just keep an eye on things. That, in itself, is valuable. But property management companies are open to helping you find short-term tenants willing to pay premium prices for a furnished apartment.
In general, they’ll be people travelling on business and expect to stay from a few weeks to a few months. Your downtown address will appeal to them; most are model tenants. With your property managers supervising the whole process, you’re left with nothing to worry about, plus you get an additional source of income.
Should you opt for longer-term leases, the property management company will handle that too, and once again, you won’t have to do much in exchange for the income your property earns. But do be aware that your prospective tenants probably want an unfurnished apartment. If you’re planning to move out with your furniture, or it isn’t your primary residence, and you’d instead not go to the expense of furnishing it, longer-term tenants are the best solution.
There’s an additional advantage to longer-term tenants. When you go the short-term route, you need to refresh and maintain everything regularly, which has costs. If you rent to tenants who will stay for several years, you’ll only be responsible for major repairs, and the little touch-ups will be their responsibility.
Long-Term vs Short-Term Tenants: Your Needs and Your Potential Earnings
There are several reasons why short-term tenants bring you more income and are easier to deal with. As mentioned, longer-term tenants usually want to bring their own furniture. That means yours has to go into storage, and that cost is offset against the lower rentals you get from tenants entering into deals like this.
Longer-term tenants also develop a sense of “ownership” and can be much more demanding, besides wanting to change things to suit their preferences – which may not match yours. On the other hand, if you’re confident that your property managers can find the right tenant and don’t plan to use your condo anytime soon, you might decide that knowing your property is in good hands justifies this choice.
And although shorter-term rentals usually earn more when occupancy rates are high, there will be some downtime when your apartment has no tenants. Longer-term tenants ensure a constant income stream, and the property remains occupied. A sense of “ownership” doesn’t necessarily have to be wrong with the right tenants. After all, if they see it as their home, they’ll take better care of it!
Fortunately, your property managers can handle routine maintenance requests, rent collections, etc. So, once again, the problem of managing the property remotely is solved in advance.
However, if you plan to use your apartment at certain times of the year, moving all your furniture in and out every time you’re in town is far from ideal. Short-term rentals could be more to your liking. As an extra plus, you’ll earn more income than you would from a longer-term rental if your property managers achieve reasonable occupancy rates for your furnished pied-a-terre.
Still Worried? Here’s Why You Shouldn’t Be
Renting out your apartment, whether short or long-term, can be a massive headache when you don’t have professional help. But the best property managers handle all the work that goes into it: marketing your property, screening tenants, attending to maintenance needs, collecting rents, ensuring you’re adequately insured, and dealing with legalities or disputes are all off your plate. You sit back and collect your income.
Is your condo working for you, or are you working for it? Maximise your income and cut the worry and hard work out of the equation. With the right property managers on your side, it’s a breeze!
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