Everybody wants to own their own slice of paradise and in the 1970s, vacationers first saw the...
Can you rent out a condo? Condominium owners will know it’s usually a complicated process. Yes, you can rent out a condo that you own — but there are strict rules in place that landlords must adhere to so they can generate potential rental income.
Condos have specific rules for homeowners that ensure property values are maintained and that serve the community’s best interests. Before you consider renting out your property in a condominium, here are the crucial insights you need to know first.
- Does Your HomeOwners' Association Allow Rentals?
- Is Your Condo Rental-Ready?
- Is Renting Easy to Do on Your Own?
- Is There a Rental Program Available?
- Can a Non-Bermudian rent the property they own in Bermuda?
1. Does Your HomeOwners' Association Allow Rentals?
A big difference between renting out a condo and a typical apartment or property is the presence of a HomeOwners' Association (HOA). HOAs govern condos to ensure each homeowner follows a specific set of rules and regulations in the community.
These rules exist to maintain high condominium standards and protect property values within the association.
In most condominium developments, HOAs don’t permit short-term rentals or vacations. If you’re purchasing a condo and want to rent it out when you aren't in residence, carefully review the HOA documents to ensure there aren’t any rules against this.
2. Is Renting Easy to Do on Your Own?
A do-it-yourself rental sounds easy if you can rent your property when not in residence. However, there are still factors to consider, from screening tenants and providing access to handling legal fees and laundry for example! For working professionals, this can present many challenges to handle alone.
If you attempt to do this on your own, here are typical responsibilities you can expect to take on:
- Regular marketing to find tenants.
- Screening tenants.
- Creating and signing leases for long-term rentals.
- Quickly turning around your property for the next resident.
- Collecting rent and fees.
- Keeping track of finances.
- Scheduling maintenance repairs.
- Issuing legal notices.
- Filing evictions and paying any associated legal costs.
Another option is to market your condo via a specialist platform to make it easier, such as Airbnb. This method allows you to manage property marketing through the platform, but as valuable as it is, it isn’t always the right choice to rent out a condo you own.
A reliable alternative is a hotel condominium. These are appealing due to their convenience and low-maintenance approach to rental, where an on-site management company takes on most of the burden and responsibility of operating and maintaining your property when you’re away. Some hotels even operate their rental service under a hotel brand such as Hilton. More on this in section 4.
Hotel condominiums are often called a done-for-you vacation home and are quickly becoming must-have purchases.
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3. Is Your Condo Rental-Ready?
Whether you need a place to store your belongings while on vacation or it’s your family getaway, a condo can serve you well. However, you’ll typically need to reshuffle the interior to optimize your condo for stays when renting it out.
You want everything to be new and perfect to optimize your occupancy. You’re competing with other landlords and Airbnb hosts in your local area, so you need to stand out. A good place to begin is investing in basic equipment visitors expect to find, such as:
- A digital keyless entry system.
- Reliable WiFi
- A smartTV.
- Extra bedding, pillows and towels.
- Toiletries such as soap and toilet paper.
- Pantry essentials such as sugar, salt, pepper and condiments.
These are the bare minimum. If you aren’t in a popular vacation destination, you might need to invest even more in upscale amenities such as pools — plus the annual running costs that come with them.
In comparison, hotel condominium resorts often have fantastic amenities built-in, from pools and gyms to bars and restaurants. Plus, you don’t have to maintain or lift a finger when enticing potential guests to rent your condo. These perks make it so much more than an ordinary property.
4. Is There a Rental Program Available?
There’s no denying Airbnb is an option that will be high on many lists. But have you considered buying a condo in a resort branded under one of the biggest hotel names, such as Hilton?
Plus, when many guests want to book your condo, the operating company handles the bookings for you, from check-in at the front desk to housekeeping and maintaining the amenities during the guest’s stay.
This is a more convenient style of ownership. If this sounds perfect for your condo rental needs, our visual guide covers everything you need to know about the advantages of purchasing a condo this way. Get access today using the form below.
Find Out More About Bermudiana Beach Resort
The guide showcases our condominiums and the amazing range of amenities at the resort. Download your own copy to see what makes the resort so special.
5. Can a Non-Bermudian rent the property they own in Bermuda?
Government regulations prevent non-Bermudian homeowners from renting out their homes without express permission from the Government Ministry.
Permission typically isn’t granted for over 12 months, while permission renewal is considered on its merits at the time.
A non-Bermudian who owns a hotel condominium (like the ones at Bermudiana Beach Resort, Tapestry Collection by Hilton) is exempt. They can rent the property they own to Bermudians and non-Bermudians with a work permit, residential certificate, or any non-Bermudians staying for less than 180 days in Bermuda — provided it’s rented through the hotel inventory.
Renting out your condo seems challenging on the surface, but it doesn’t need to be if you select the most convenient and beneficial option. We have more resources available to help make this entire process much more efficient.
Learn More About Purchasing & Renting a Hotel Condominium
Vacation homeownership can be a breeze if you want it to be. Take a look at our guide ‘Why Bermudiana Beach Resort?’ to understand how to make it simple.
From our relationship with prestigious hospitality giant Hilton to how our condos can make excellent rental properties, you can find it all in this guide.
Click below to get access and start your journey.
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