If you are looking to split your time in different locales, renting out your condominium unit may help you cover payments in your absence. Particularly if you live in a very desirable area, renting out your condominium could even make you some profit.
However, it is vital to examine the pros and cons to such a move. According to Zillow, the pros to renting out your condominium include profit and reduced taxes, and the cons involve spending money on repairs and dealing with difficult tenants.
The pros to renting out your condo
The most obvious positive is getting supplemental income. If you are able to rent out your condominium for $1,500 a month, that’s an $18,000 net gain in income. Additionally, renting out your condominium rather than selling it provides you an opportunity to benefit from property value increases over time. The longer you hold on to your condominium unit, the more it will sell for.
Additionally, you may enjoy some tax benefits owing to deductions. If you are a landlord and must make repairs or upgrades, you can deduct the expenses from your income. This will in turn lower your tax burden.
The cons to renting out your condo
Keep in mind that you might end up making less money than you anticipated, particularly if your condominium unit stays vacant for a long period of time. In the event that demand for housing in your area drops, you might find it more difficult to sell your condominium unit. While repairs are tax deductions, they are still expenses and it takes up time and money. Finally, if your tenants are less than reliable you might have to manage late payments or damage to your property.