Can you rent out a condo? This may seem like a simple question, but if you own a condominium, you probably know it’s rather complicated to rent it out. Yes, you can - but there are rules landlords must adhere to in order to generate potential rental income.
Condos have their own additional rules landlords must follow to maintain property values and serve the community's best interests. Before you consider renting out a property in a condominium, there are a few important things you need to know first.
- Does Your HomeOwner’s 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 HomeOwner’s Association Allow Rentals?
One of the biggest differences between renting out a condo and a typical apartment or property is the presence of a HomeOwner’s Association (HOA). Condos are governed by an HOA that ensures each homeowner follows a specific set of rules and regulations in the community.
These rules exist to maintain the standard of the condominium and protect the property values of the units within the association.
In most condominium developments, the HOA doesn't permit vacation or short-term rentals. If you’re yet to purchase a condo and want to rent it out while you’re not in residence, carefully review the HOA documents to make sure there’s no rule against it.
2. Is Renting Easy to Do on Your Own?
If you’re allowed to rent your property, Do-It-Yourself rental sounds easy enough, but there are a lot of things to consider. From screening tenants to handling any legal fees, it’s a challenge to handle everything yourself, especially if you’re a working professional.
Here are just a few of the responsibilities you can expect.
- Constant marketing to find tenants.
- Time spent screening tenants.
- Creating and signing leases (if long-term).
- Turning around your property quickly for the next resident.
- Collecting rent and fees.
- Keeping track of finances.
- Scheduling maintenance repairs.
- Issuing legal notices.
- Filing evictions and paying any legal fees associated with them.
Alternatively, you might opt to market it via a platform like Airbnb to make it a little easier. That way, you can at least manage the marketing of your property through the platform.
Even though Airbnb has been successful, it’s not always the right choice for an owner looking to rent out a property.
It’s important to do your research to find the right option for you. Luckily, there are alternatives you can take advantage of.
Condo hotels are appealing because of their convenience and low-maintenance approach to rental. To make it even easier, an on-site management company is responsible for everything from renting out to operating and maintaining your property when you’re away.
That’s why condo hotels are sometimes referred to as the Done-For-You vacation home and are quickly becoming must-have purchases.
3. Is Your Condo Rental-Ready?
Whether you need someplace to store your belongings while on vacation or it’s a family abode, your condo might serve you well. However, when renting out your condo, some interior reshuffling is usually needed to optimize it for stays.
Everything should be perfect and new because you want to fill your occupancy. You’re competing with not only other landlords but also Airbnb hosts in your local area too. There's basic equipment you need to invest in, such as:
- A digital keyless entry system.
- Reliable WiFi.
- A smartTV.
- Extra bedding, pillows and towels.
- Toiletries such as toilet paper and soap.
- Pantry essentials such as sugar, salt, pepper and condiments.
This is the bare minimum. If you aren’t in a popular vacation destination, you might even have to invest in upscale amenities like pools, but be prepared for the maintenance that comes with them.
Condo hotel resorts often have fantastic amenities built right in, from infinity pools to bars. The best part? You don’t have to maintain them and they entice potential guests so much more than a property without these perks.
4. Is There a Rental Program Available?
As we mentioned earlier, Airbnb might be the route you take. But have you considered the benefits of buying a condo in a resort branded under one of the big hotel names such as Hilton? This way, you get to take advantage of the brand's worldwide reservation system and can access its loyal members.
Their focused marketing strategy, 100 million-member Hilton Honors loyalty program and global 24:7 reservations system all boost demand, keeping your condo occupied and at a better room rate. When there are lots of guests flocking to stay at your condo, the operating company's job is to handle the bookings for you when they come - from check-in at the front desk to repairing and maintaining the amenities and handling housekeeping.
If this more convenient style of ownership sounds perfect for renting your condo, we’ve created a visual guide for everything you need to know about the advantages you can gain through purchasing a condo this way.
5. Can a Non-Bermudian rent the property they own in Bermuda?
Permission will seldom, if ever, be granted for a period in excess of twelve months and renewal of permission will be considered on its merits at the time.
A non-Bermudian who owns a condo-hotel residence (like the ones at Bermudiana Beach) is exempt and can rent property they own to Bermudians and to non-Bermudians with a work permit, residential certificate or to any non-Bermudian staying for less than 180 days in Bermuda providing it is rented through the hotel inventory.
Learn More About Purchasing & Renting at a Condo Hotel
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 potentially make great rental properties, you can find it all in this guide.
Click below to get access and start your journey.