What types of condos rent out quickly?
Investing in condominiums for rental income is a popular way to generate passive income. In the long term, you can profit from the appreciation of the condo's value, or, if you stop renting it out, the condo can become a second home you own without having to pay a mortgage. However, the key to successful condo rental investment is choosing a condo that is easy and quick to rent out, ensuring a consistent tenant base so you don't have to make mortgage payments yourself. Here are some guidelines for choosing a suitable condo for rental:
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1. Quality Location and Convenient Living
When choosing a condo for rental, you must put yourself in the shoes of the "renter." Those needing temporary housing are often people who have relocated for work or study. Therefore, choosing a condo in a convenient location – on a main road, in the city center with easy access to workplaces or leading educational institutions – is more likely to attract interest. If not in the city center, a location near a public transportation system with easy access to the surrounding area is a strong selling point. The advantage of condos outside the city is that they are quieter and less crowded. Being near a public transportation line makes commuting into the city much easier.
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2. The Size and Layout of the Room Must Be Appealing
A condo that's too small isn't a great option, even if it's intended for a single tenant. A mid-sized unit with partitioned rooms is a better choice, accommodating 2-3 people, even when guests visit. Conversely, overly large condos carry the risk of high rental costs and difficulty finding a suitable tenant. While tenants of large, high-priced condos tend to stay longer, if you can't consistently find new tenants, you may face excessively high expenses. Therefore, a mid-sized unit (32-45 square meters) is the most suitable for renting – the rental rate isn't too high, and there's a large market for tenants.
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3. The Room's Location Must Conducive to Good Living
A good floor plan and suitable room size are important, but if the location isn't conducive to comfortable living, it will be difficult to rent. For example, a unit next to the elevator, fire escape, or garbage disposal area will be difficult to rent. Or rooms located in directions where airflow is blocked, receiving excessive sunlight and accumulating excessive heat, etc. Details regarding the room's location are small details that should be considered from the outset, as they can sometimes be the deciding factor, leading tenants to choose a room with a better location and resulting in a missed rental opportunity. In addition to avoiding poorly located rooms, choosing a room with a beautiful view is a bonus that can significantly increase the chances of renting it out.
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4. Complete Amenities, Ready to Move In Immediately
Between a condo with no furniture and a condo that requires no additional furnishings and is ready to move into, the latter will likely win over the former, even with a higher rental price. This is because convenience is the most important factor in influencing tenant decisions. Therefore, condos that are easy to rent out must be fully furnished and decorated, ready for move-in with just a suitcase. The condo's common areas must also cater to the lifestyles of most people, including co-working spaces, swimming pools, fitness centers, and, importantly, sufficient parking. Even if the condo is near a public transport station, remember that cars remain the primary mode of transportation for most people. Therefore, if the condo lacks parking or has insufficient parking spaces, it will negatively impact rental income. This would be a major blind spot that could cause us to miss out on many opportunities.
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To be honest, finding a condo with all the aforementioned qualities isn't easy. Even if all the elements are present, it's possible that our capital may not be sufficient. Therefore, the starting point for considering investing in a condo for rental purposes should be based on your available budget. After that, gradually search for the best condo that fits your budget. The final crucial element, besides choosing a quality condo, is taking attractive photos of the condo and effectively promoting it to your target audience. Because no matter how good your condo is, if the photos aren't appealing and you don't do effective marketing, the chances of consistently renting it out as you hope will be significantly reduced.
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Thank you for the valuable information from REIC.
