Currently browsing: General

Are Condos a Good Investment for Rental Property?

Condos seem to be all the rage these days. Modern designs, compact living spaces, attractive prices — it all sounds great. But once you break down all things considered, the real question arises: are condos good investment properties?

First, we recommend determining if a condo is a good fit for you. Then, you should thoroughly explore the pros and cons of condo investing. Sounds like a daunting task? We are here to help!

Should I Invest in Condos or Houses?

Determining your objectives, project timeline and budget is vital to the success of your investment property. Additionally, a variety of factors should be considered — including the market, location and your personal preferences before making a decision. All of this combined will help you figure out if a condo or house is a better fit for you.

Understand Your Target Market

The type of renters you will attract with a condo versus a house is quite different.

With a house, you’ll likely find families who have more members and personal property. You should seek renters who are willing to maintain the home to some extent. They will become the property’s primary caregivers.

Condos tend to attract single people or couples who live a more minimal lifestyle. The condo corporation will usually offer building maintenance and other services. This means your renters will not need to assume as much responsibility in that regard.

We highly recommended that you screen all potential tenants, regardless of your property type.

Advantages to Condo Investing

Less Costly

Condos are typically far cheaper investment opportunities than houses. Having said that, every market and location is different — so you should always make sure to do your research. Condos might be a more affordable way to get started in the rental market for many investors.

Less Maintenance and Fewer Bills to Manage

Since condos are smaller in size, they have fewer maintenance tasks and lower costs. It can be more practical and successful to take on a condo rental property, especially for your first experience.

Condo fees generally cover some of the expenses you would normally be charged with. This may include cable, water, snow removal, landscaping, garbage, etc. Although you are still financially responsible for these services, you do not need to worry about managing the monthly bills for them.

Great Locations

Condos tend to be in areas where people want to be — downtown centres, trendy districts and vacation hot spots. These areas usually contain a higher density of condos, which can certainly make your investment property more desirable to renters.

Disadvantages to Condo Investing

Condo Fees

There is usually a condo board that sets a monthly fee that condo owners are required to pay. It is important to understand what exactly this fee includes and to factor this into your operating costs.

Restrictions

If you are hoping to purchase a condo and turn it into a rental property, you’ll want to make sure you are permitted to do so. Some condo corporations have restrictions in place and could even require a deposit.. We suggest doing your legwork on this one — it is well worth the effort. It is extremely important that you read your condominium bylaws and that tenants are also given a copy. Often, you are responsible for your tenant’s actions.

Financing Obstacles

Lenders tend to be more inclined to approve financing for houses rather than condos. With condos, lenders factor in different variables when making these decisions. This may include the occupancy rate of the building, its delinquency rate and possible ongoing litigations.

Need help finding or maintaining a rental property?

Emerald Management & Realty Ltd. has been servicing the Calgary area for more than 40 years. We have experience with condos, apartments, houses and commercial spaces.

We can assist both tenants and property owners and we specialize in catering our services to each customer’s specific needs. If you think we can help, don’t hesitate to contact us today!

July 2020

To Our Loyal Customers –

Thank you for your continued support during this challenging time. Like many essential service providers we are implementing processes and have been working remotely where possible in an effort to do our part to help slow the spread of COVID-19. Our primary goal during this time was to keep you and our team members safe. We began to cautiously working towards returning to work by rotating schedules to meet the requirement set in place by Alberta Health Services stages of the relaunch.

Re-Opening Safely –

With restrictions easing across the province, we have begun to slowly implement return to work protocols and have made access to the office available by appointment. We have installed plexi-glass dividers to protect visitors who are attending the office for payments or other necessary appointments. We are closely following guidelines at the local level, as well as making adjustments and continue to act responsibly and follow all public health measures.

Your Safety –

Safety remains our top priority and we promise that we will remain vigilant. COVID-19 information is fast moving and changing. Based on current recommendations from Alberta Health Services, to protect everyone, we have implemented the following safety measures:

Signage has been placed where possible in visible areas to remind residents, guests and attendees to “Help Prevent the Spread” and promote proper hand hygiene. Additionally, communication such as bulletin boards notices, paper notices and/or signage has been placed in common areas or elevators, and newsletters have been sent out to assist in promoting best practices as recommended by government agencies.
Training of all team members; enhanced cleaning and sanitizing procedures.
Gloves and masks are made available and worn where required by all maintenance or on site team members
Procedures to increase the disinfecting and sanitizing of common areas and high touch locations throughout the office and multi-family dwellings.
Video conferencing to assist with board meetings and communication.
Social Distancing Protocols as recommended by Alberta Health Services
Common amenities in apartment and multi-family buildings, with the exception of laundry facilities or as permitted, have been closed to maintain social distancing.
Where required, buildings have upgraded to high-quality air filters and which will be changed more frequently over the next few weeks.

In addition, we continue to following guidelines at the local level, as well as make adjustments as information and public health protocols change.

We Can’t Wait to See You –

While we still haven’t returned to business “as usual”, we do look forward to the day when we can safely interact without the threat of COVID-19. Until that time comes, we thank you for your cooperation in doing your part in helping each other stay safe and healthy.

Please stay up-to-date on current public health orders by regularly following the daily public health updates from Alberta’s Chief Medical Officer.

There are simple steps you can take to stop the spread of all viruses, including COVID-19, such as:

Wash your hands regularly, using the proper hand washing technique
Practice good housekeeping and personal hygiene
Avoid shaking hands
Maintain 6 feet of physical distance between you and other people, wherever possible
Avoid touching your face
Use an alcohol-based hand sanitizer
Use alcohol-based cleaning wipes on frequently touched surfaces

Alberta Health Services has recently reminded multi-family building residents to keep themselves and others safe by:

Wearing a mask when outside the apartment (in hallways, elevators, lobby, etc)
Limit interactions with other residents, especially in the common areas
Wash hands frequently
Limit the amount of people in the elevator at any time to one or two people (depending on the size of the elevator)
If a sanitation concern is noticed, the building manager must be notified immediately.

If you start to exhibit symptoms of COVID-19, self-isolate and call Health Link (811) for additional precautions. You can also assess your own risk if you are concerned or exhibiting symptoms of COVID-19. If you need to self-isolate, follow the recommended instructions for self-isolation: Self-Isolation Fact Sheet (Government of Alberta).

COVID-19 information is fast moving so please let us know if you have any concerns or notice a sanitation issue so that we can work together to minimize the risk of transmission.

Together we are stronger. Your support and cooperation through all this is making a difference.

Stay well.

While Calgarians continue to work towards flattening the curve for COVID-19, we have prepared a newsletter to help manage through this time with a focus on other areas that we need to remain mindful about, such as the importance of insurance and property maintenance.

The following tips for rental and condominium residents have been prepared to help keep our customers up-to-date on current COVID information as the province moves through its re-opening this summer season:

*2020 Summer Newsletter prepared for Condominium Boards & Residents. Similar newsletter was also delivered to all rental tenants during the month of July 2020.

Emerald Management & Realty Ltd. is a family owned and operated Property Management Company in Calgary with over 40 years of experience. Contact Emerald today to discuss the variety of management and rental property services their team can provide tenants, property owners, homeowner associations, and condominium corporations.

How to Find Rental Homes in Rural Areas

When thinking about investing in a rental property, most people will automatically turn to urban homes. There is a lot of untapped potential in rural settings as well, though this is often overlooked by investors. That small-town charm can be very enticing and the idea of friendly neighbors and a slower pace is appealing to many people.

The trick is knowing how to find rental homes in rural areas and evaluating whether they will be a promising investment for you. In this article, we’ll break down some ways to find rental homes in rural areas and weigh your options accordingly.

Seek the Help of Reliable Property Management

If you want to find your rural investment property efficiently, it may be best to seek the assistance of a licenced property management or real estate company. They will be able to present you with an assortment of options based on your desired location, budget and timeline.

Perhaps you are looking for immediate investment opportunities or are wondering how to find cheap rental homes. In these cases, a licenced team can help. They are knowledgeable about rural legislation and will be able to offer guidance and advice in navigating the purchasing and rental process.

Additionally, if you are looking to have someone manage the rental property for you, they would be able to take care of this. This would be an excellent option to explore if you do not want to search for the property yourself, or if you lack the knowledge to do so.

Or You Can DIY

Alternatively, you can take on the search yourself. This is often a great way to learn more about the specific properties, the community and pertinent legislation. It is highly recommended that you study your targeted rural area and become familiar with the housing market and local economy.

The internet is a great resource for finding this information. You can browse through the properties that are for sale to compare statistics and prices.

It is also a good idea to physically go visit your desired location. Take a drive through the streets, as you may find properties for sale that are not listed online. Or you can stop at the community center or grocery store, as bulletin boards are still often used by people in small towns to advertise.

It can also be a good idea to get to know the people in the town. There are usually a handful of ‘must-know’ individuals who are familiar with everything that is going on.

Insurance for Rental Properties

Many people wonder if you need home insurance for rental properties. The answer is YES — you’ll certainly want to have the proper insurance in place when operating a rental property.

There are a number of landlord policies available that will provide the coverage you need in this situation. This type of insurance often covers the building itself, as well as other structures on the property such as sheds or fences. Landlord insurance also typically provides liability coverage related to renting out the premises.

For example, if a tenant is hurt in the home and you as the landlord are found responsible, this policy may help cover any resulting medical expenses or legal fees. In Alberta, you can also require that your tenants have renter’s insurance to protect their personal belongings and offer them some liability protection.

Understand Yourself and Your Market

Even if you are an experienced investor and landlord, it’s important to remember that rural rental properties are still quite different from urban ones. There are certainly some advantages, but there is also a different assortment of risks. It is especially important to understand the ins and outs of rural investing and truly have a passion for it. This will result in a far greater return from your investment property.

Contact Us Today

If you live in the Calgary area and are looking to acquire a new rural rental property (or require assistance with managing an existing one), our team at Emerald Management & Realty Ltd. can help. We are a family-owned and operated business with over 40 years of experience in the property management industry. We look forward to connecting with you soon.

« Previous 1 … 15 16 17 18 19 … 39 Next »