New Landlord: Why Should You Consider Investing In A Condo

Buying and renting a piece of property can be an excellent investment, but owning an expensive home isn’t always an ideal option. Not only do larger homes require much more capital to buy initially, but the maintenance costs can also be quite prohibitive. Those are just a few of the reasons why many landlords are now investing in condominiums as an alternative to high-end residential property.

Additional Amenities

One of the biggest benefits of purchasing a condo is the fact that they often already have many of the most desirable facilities. Instead of installing a new pool or adding an additional room for a home gym, condo communities generally have at least some of those amenities already. Those upgrades will continue to increase the value of your property, but you will only pay a fraction of the price for them.

A Smaller Initial Investment

Depending on the local market, most condominiums cost thousands less than homes of comparable sizes. While their value does tend to increase at a slower rate, they can easily be turned into rental units. The community might already have stacks of applications from single individuals, couples, and smaller families who aren’t quite ready to purchase a home. Condos are the perfect blend of affordability and value for landlords.

Lower HOA Management Fees

Hiring an HOA management company, like J & N Realty, Inc., for a larger piece of property or a multi-family home can be prohibitively expensive. Many potential buyers must work with huge investment firms in order to continue paying the fees until they are making money back from their investment. HOA management companies often offer very affordable rates for condos, and they will help with the countless tasks that landlords must think about such as finding the right insurance, enforcing tenant rules, property inspections, and drafting new contractors.

Improved Security

The importance of security in a rental unit can never be overstated. Even if you take every precaution imaginable, accidents and crimes can happen in the blink of an eye. The vast majority of condo complexes have at least some security features such as guards and locked entries. A rental unit that is extremely safe is also going to have much lower insurance premiums and be more appealing to renters.

Buying a condo is a great stepping stone for those who are looking to invest in real estate. These properties are much easier to buy, maintain, and sell in practically any market, and they are the perfect option for any investor who would like to start building wealth.