If you want your condominium complex to truly prosper, there are two main groups of people to appeal to: those seeking to live in the condo, and those looking to rent them out as an investment. While short-term rentals (like Airbnb) are an unfortunate reality of condo communities, there are special considerations that should be taken into account when deciding if they should be allowed and to what degree. However, at the end of the day the groups that you need to appeal to most are long-term residents and investors, who could be renting out to short-term or long-term tenants. While both essentially want the same positive aspects of a community, investors tend to look more closely between the lines.
In this article, we go over several aspects of the community that potential tenants and investors consider before purchasing a condo. One of the best ways to ensure that your condominium complex is always presentation ready is to hire a Tampa condo management company, such as Wise Property Management, Inc. We keep our communities running smoothly, so you can focus on the important things.
Condition of the Property
The overall condition of the surrounding landscape and outside amenities will make up the first major impression for potential buyers. Overgrown shrubbery, cracked sidewalks, and amenities left unchecked (a dirty pool or an exercise room with no functioning equipment) can immediately turn off the desire to buy. Essential services like working elevators and clean common areas are also basic but important necessities that buyers expect. Like previously mentioned, short-term rentals can often cause issues, but Wise can ensure that all laws are followed, prevent permanent residents from being disturbed, and prevent the property from being damaged by short-term guests.
One Percent Rule
An important correlation with the condition of the property for investors is its ability to abide by the one percent rule. This rule of thumb states that the monthly rent they are able to charge should be at least equal to one percent of the total purchase price of an investment property. If the surrounding area and amenities don’t meet proper standards, it is unlikely that they will be able to do so. If your community’s property has become too much of a hassle to keep up with, Wise can easily help restore it to its former glory.
Even though the Federal Housing Administration (FHA) requires a minimum of 50 percent of the condominium units to be occupied by owners, this is still an important balance to keep in mind. Ideally, you’ll want the majority to be permanent residents. This balance ensures that the majority of the residents can form a communal bond, while renting out condos is a widely accepted practice. Avoiding community friction is important for resident satisfaction. If you’re currently unsure of the current ratio in your community and want to improve in the future, Wise offers a meticulous tenant screening process to ensure that this balance is established.
Are you ready to work with one of the top Tampa condominium management companies that makes life easier for you and your board members and improves the value of your property? If so, submit our proposal request form today!