As real estate prices in Austin increase, that’s a question we have been getting more and more often. Owners who want to keep their units as an investment or investors who are looking for an easily managed investment see condos as an ideal choice. Others looking at starting an AirBnB business and are looking for something you can get off the ground quickly. Condos are convenient in that all you need to worry about is the interior. But, is it possible to rent a condo in Austin?
Can I Rent Out My Austin Condo?
Can I rent out my Austin condo? The short answer is…maybe.
Tip #1: Read the HOA Rules, then Reread them In Case You Missed Something
When buying a condo – to live in or to rent out – it is super important to read the HOA rules carefully. These are enforceable covenants that you agree to abide by as an owner. If you don’t follow the rules, they can take action against you. Don’t assume they are all “standard rules.” They will affect how much you enjoy living in the property.
Some HOA’s Have Rental Restrictions
These rules typically address renting out the units. Some have no restrictions on what you do with your unit, some restrict the length of the lease, some have final approval on tenants, some have limits on how many units can be rented at one time and some require owners to pay fees for the privilege to rent their units. There is no standard. They are all different.
Some HOA’s Forbid Short Term Rentals
There are very few HOA dues, mortgage payment, property taxes and fees for short terms rentals, it usually doesn’t make sense financially.
What if I Want to Rent it When I Move Rather than Selling It?
If your building has a waiting list to convert your unit into a rental (and some do), get on the list immediately. It could take a few years to get approval and this way you are further along in that process, If you are planning on selling a property then make sure that you thoroughly research the estate agents as you may now think that online is so much cheaper but there are lots of high street estate agents that now have online prices like this estate agent in Bristol so make sure you give them a look too.
. Ask if there is a time limit to when you have to find a renter after you are approved. You might have your status revoked if you don’t get a renter in time.
What About a Condo as an Investment Property?
On the surface, condos can be pretty enticing for investors. They are typically in highly desirable areas, like Downtown Austin, where renters are easy to find. And, owners are typically responsible for the walls in, which means exterior maintenance is taken care of. But, it isn’t as easy as buy the unit and find a tenant. And, the rules are subject to change, so what works now might not in a year.
What If I Find a Condo that Allows Rentals?
Great! Use it as a rental, but have a backup plan. HOAs have been known to change their rules at any time. With a rule change, you might have a unit that is no longer rentable. If you aren’t living in it and can’t rent it out, then you either let it sit vacant or sell it. Then, you’re at the mercy of the market. Will you be able to make a profit on the sale? What will you transfer the money to when you sell it? Answer these questions and have a plan if the HOA no longer allows rentals.
Looking to Buy an Austin Condo?
Whether you’re looking to purchase a condo for investment or to live in, we can help find the unit that’s right for you. We have a combined 60+ years of experience in residential real estate and know the Austin area well. Check out our Austin Home Buyers section for more information about how we work. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to schedule a no obligation consultation.
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