How to Make Your Condo Available for Rent

Condominiums are generally apartment-style homes that you can buy. Condo community members own the apartment interior and share the common areas with other members. Condo owners have a right to rent the properties as long as renting the condo does not conflict with the terms of the owner's mortgage loan. As a condo owner, you must follow federal fair housing guidelines, whether you rent the property out yourself or with the help of a real estate agent.

Instructions

By Yourself

1. Prepare your condo to show. Condos that show well rent faster than messy condos. Tidy up the living space and organize your belongings, especially the closets, so that prospective renters can see how much interior storage they have to work with. Have walls, floors and windows professionally cleaned, and get broken appliances fixed. You can also renovate the condo by painting the walls, and by adding new appliances and fixtures, if you purchased it as a fixer-upper investment property.

2. Write an advertisement. Include in the ad most, or all, of the following information: location, price, number of bedrooms and bathrooms, kitchen size, presence of laundry facilities and your contact information. You can write more information about your condo in the ads you place online. Although not required, you can take photographs of your condo for inclusion in online ads to encourage interest.

3. Place your "condo for rent" ads online and in local newspaper classified sections. Open an account on the websites of free online classified ad providers. Follow the directions provided by the websites to place your advertisement, which vary by provider. Contact your local newspaper's classified ad sales department to place your ad. Some newspapers charge users one fee to list ads in the print and online editions simultaneously. Prices vary based on newspaper ad rates, your ad length and ad running time.

4. Notify your condominium management office. Condominiums communities allow owners to rent out their condos, but make distinctions between owners and tenants. Tenants, for example, may have limited parking options and may have restricted access to owner benefits such as on-site recreational facilities. Condo owners are generally held responsible for providing tenants with condo rules and other information pertinent to living in the community.

With an Agent

1. Contact a real estate agent to list your condo for rent. You can ask the agent who sold you the condo to list it, or ask the agent for a referral if he does not handle rentals. The real estate agent will preview your home before drawing up a listing agreement.

2. Sign the rental listing agreement. The agent will fill out a boilerplate, legally binding agreement -- created by the area real estate board -- that allows her to list your condo for rent in the multiple listing service, or MLS. The listing agreement also allows your agent to show the property along with other licensed agents in the area. The agreement contains data about your condo, the price and other general terms, such as the minimum qualifications to rent the condo. The listing agreement also specifies the commission you agree to pay your agent, and any other agent, for finding a qualified tenant. Once you sign the agreement, you generally can no longer look for a tenant yourself.

3. Sign a property management agreement. You can hire a property management company to find a tenant, collect rent and communicate with that tenant if you no longer live in the area, or if you prefer a "hands-off" approach when dealing with rental properties. The property management company uses the same listing agreement that real estate agents use, if your state requires property managers to be licensed members of the real estate board, and thus, the same terms regarding listing in the MLS, commission and finding a tenant apply. Non-licensed property management listing agreements vary.

Tips & Warnings

• Although you can have your tenant sign generic lease forms, you should use forms tailored specifically for your state, which you can search for and purchase online or at an office supply store.

• Condo owners are responsible for paying the mortgage, property taxes and condo fees, even in absentia. Your tenant could be the unintended recipient of late notices and other collection attempts, which could cause you additional legal problems, if you fail to keep up with payments.

References

• Hud.gov: Fair Housing -- It's Your Right
• Realtor.com; What Buyers Should Know about Condominiums
• Realtor.com; Understanding FHA Loans; Rick Hazeltine
• Lowes Commercial Services; Staging Tips and Tricks to Rent Empty Units; Elizabeth Cotner; January 2010
• American Apartment Owners Association; How to Write a Killer Rental Ad; Dan Page
• Move.com; The Rules of Renting a Condo; Marcie Geffner

Resources

• MSN Real Estate; How to Rent Out Your House; Marilyn Lewis
• Keller Willians Oceanside: Rental Listing Policies
• Bureau of Labor Statistics: Property, Real Estate, and Community Association Managers