Rental condos are a great investment and can be enjoyed by the owner as well as any renters when the owner isn't using it. It serves as a great vacation option and generates income for the owner as well.
Vacation rental condos are usually located in popular tourist locations. The standard usually includes a swimming pool and possibly a fitness center, and ideally is close to a beach as well. Higher end condos may have tennis courts and laundry facilities. Also nearby shopping and restaurants is an asset. In larger cities, urban condos are popular as they place the renter right in the center of city activities and offer many inexpensive transportation options. If a renter likes the nightlife, a downtown condo would be very appealing.
Oftentimes these condos are managed by professional management companies. This removes a lot of the headaches to the owner of having to function as a landlord. Generally, these management companies charge a percentage of the rent for their services, which include not only collecting rents, but cleaning and maintenance of the properties. Speaking of rents, they often more than cover the owner's mortgage payments and possibly even the condo association fees, especially if the condo is in a tourist area.
A well-chosen condo can be a good investment as it provides all the tax break benefits of home ownership. This is because it is considered a second home, with all the tax advantages that entails. For this reason, it is important to keep good records of the periods in which your condo is rented out.
Renting to long-term tenants opens the door to even greater tax benefits as owner of a rental property as opposed to vacation property. You would be wise to consult a qualified CPA to help you understand the tax ramifications of owning a vacation condo and how to get the best possible benefits for your money.
Another reason a condo is a good investment is, if it is in a good location and well-managed, it can often appreciate in value. If and when the owner is ready to sell, the fact that there is a tenant living in the condo will not be a hindrance. They would be free to put it on the market at any time they see fit.
There are both pleasures and benefits to owning your own vacation condo. It's just recommended that you do your homework before buying.
Comments(0)