My wife and I were considering buying a townhome or a condo focusing on areas with reputable school districts. So, I decided to dig a little deeper and find out what the stipulations were in terms of renting your home.

Why isn’t your condo renting? One of the biggest factors that can cause your condo not to rent quickly; is the high amount being charged for rent. Home Association dues can increase on a yearly basis, causing you (Landlord) to increase rent above the market rate, discouraging tenants from renting.

High rent is the biggest factor in why a property may not be renting. But there are other reasons that may be contributors to this problem as well. Check out the 5 leading causes of vacancies with your condo.

1. Rent Is to High

The number one reason why a condo won’t rent is the price is set to high. This is the biggest deterrent for prospective tenants, below there’s a list of why your condo may not be renting for your set price.

Market rents for the area

When it comes to rental pricing, every city can be set at different price points. Within those cities there are hyper-local markets, that can vary street by street. My mom’s side of the family resides in Houston Texas, and as I take my morning walks I admire the homes in the area. I find it fascinating how you can walk down one street and there’s a row of boarded-up abandoned homes.

Two blocks over walking down a different street same neighborhood, there’re up-scale homes with a completely different demographic. That goes to show you that setting a price point for your condo requires in-depth research on the area; narrowing down your search to the particular street where your condo is located.

Every metropolitan area has cities, and within those cities are neighborhoods, and within those neighborhoods are streets; researching your rental price down to the nearby area can give you a better chance at renting your condo.

Amenities can justify the price

According to Curbed LA, 65% of Millennials are renting across the nation in comparison to the 30% of baby boomers in the past. Millennials have a different mindset than past generations when it comes to home-ownership. They prefer having the ability to be mobile, not tied down to one location, and having fewer responsibilities.

Although they don’t mind renting, a high priority on their list is amenities. If the condo/home you own has not been updated to today’s standards, then they might turn an eye to potentially renting your place. This could drastically decrease your tenant demographic because millennials account for 25% of the U.S population.

When I mention upgrades, I don’t mean heated tile floors and Italian marble shipped from Italy. The basic upgrades to a modern standard will do just fine; granite countertops, white cabinets, imitation wood laminate flooring etcetera. These amenities typically apply to the bathrooms and the kitchen.

Renting a property that has been remodeled, not only increases your tenant demographic, it can increase the amount you charge for rent as well.

Unit size

Determining what to charge for your condo can be a process. Because not only do you have to research the market rent within your area, you have to pay attention to the unit size that correlates to the price.

We wouldn’t rent a 2-bedroom 1 bath for the same price as a 3-bedroom 2 bath would we? During your search, using the website filters to cater to the options to the same size and layout of your property will give you a better idea of what to charge.

In- experienced property management team

This only applies if you’ve hired a property manager to manage your property. I’ve seen it time and time again. In-experienced property managers not being able to find renters, and mismanaging their tenants.

Sometimes property managers lack the experience and credibility causing them to have an issue filling vacancies. If your property manager is in-experienced then you could assist him/her by double-checking their work or simply hire a new team.

Honestly, you shouldn’t have to go behind your property manager check price points and review the tenant screening process. If there is a problem noticed with your management team it should be addressed quickly before any other issues arise.

2. Poor Marketing

Poor Marketing is the 2nd on my list of why your condo may not be rented as quickly as you would like. Often times condos are owned by individuals/landlords and not companies. The strategy for renting a property could differ heavily between the two.

Where a third-party property management team for an apartment advertises primarily online. A homeowner may focus on more traditional routes like close friends and family, newspaper, and the for-rent sign out that goes in the front yard.

With 93% of homeowners finding their homes through online housing websites, the way in which we search for homes to rent and to purchase has shifted. Sticking to the traditional way of advertising our properties is not effective in these times. Advertising your condo on major platforms can increase your exposure tremendously, giving you a broader range of renters to choose from.

In addition to the major renting platforms like Zillow, craigslist, and redfin, you also have the local classifieds in your city that focus directly on your area.

Sometimes we’re so comfortable with our process it prevents us from trying something different. Venturing out and implementing a different advertising strategy would increase our chances of not only renting the property more quickly but filling our unit with a qualified tenant as well.

3. Strict Rental Terms

Home Associations governing guidelines often set strict rules when it comes to renting your home. To prevent high vacancy and an in-flux of renters in the community, they’ll often regulate a minimum lease term. Short term rentals are prohibited, Airbnb’s and 6-month leases would not be allowed.

Depending on your strategy, your HOA may have regulations on certain practices, reviewing your covenant conditions and restrictions guidelines before renting is vital. The restrictions imposed on your condo may slightly reduce the tenant selection pool, but shouldn’t have a major impact overall.

Rules and Restrictions Related to Renting Out Your Condo

Before renting out your condo make sure you know this

The rules associated with renting a home are much more relaxed then renting out your condo. So, being knowledgeable of the regulations that go into place when renting out your condo is important.

• Read your covenant conditions and restrictions
• Make sure your tenant understands HOA rules
• Make with your insurance provider is aware of your intentions
• Speak with your Home association group about your intentions

Related Questions

Can you rent out your condo?

Yes, you can rent out your condo, but before renting you should always review the deceleration of covenant’s conditions and restrictions. This document will include a list of everything you need to know about your property, as well as the rules and regulations in an HOA environment.

There are many home associations groups that don’t allow homeowners to rent their properties. They may also limit the number of rentals in the community to a first come first served basis.

Final Thoughts

The best route taken when it comes to renting out a condo is educating yourself. Gathering knowledge on the market and your home association community guidelines put you in a better place legally when it comes time to rent.

Certain factors can play a role in why a condo may not be rented as quickly as you’d like. Factors like the price being set too high, poor marketing, and strict regulations could slow the rental process down.