Converting your Condo to an investment property- what you need to know
When you bought your condo, you probably thought that converting your condo into an investment property would be an easy transition if your job took you out of town or you decided to move to a larger property.
No problem, you think — “I’ll just find a tenant to rent my property, figure out a rental rate, sign a lease, done.”
Actually, it’s not quite that easy. In addition to knowing and understanding the Residential Tenancy Act (RTA), you also need to know and follow the condominium bylaws and the Condominium Act, making condos a tad more complicated than converting your house to a rental property.
The condo board requires notification that you, the owner, are vacating the unit and will be converting your property to an investment property. So does your property insurance. In fact, your insurance may not deal with rentals, and you might need to switch insurance company that does.
The condo board also has its own set of criteria for converting your condo to an investment property. Ask the condo property management organization or the condo board directly what forms you and your potential tenants are required to complete, the fees, and how to pay the fees.
Some of the forms required by condo boards include:
· Absentee owner information form
· Tenant undertaking form
· Move in/move out checklist
· Vehicle identification form
· Intercom request form
· Elevator booking form/fee
· Elevator key booking form/fee
· Move in/move out fees
· Security deposit (from the owner of the condo)
· Pet application form
· Pet rules and guidelines
In addition to the forms, be aware that you have 20 days to notify the condo board/condo management company about the new person occupying the unit.