Renting out my condo while out of of the country. Where to start?

[UNiON]

I'm planning on being out of the county for two years. I presently own a 2 bedroom, 2 bathroom condo downtown. I'm interested in renting it out while being away. I'm just uncertain for how to mange this?

Where do I start? Is getting a property management company the easiest/best option? What is the typical cost per month for this type of service? Anyone from past expericne have thoughts, opinions, ideas or recommendations?

Appreciate any feedback!

[Travis Munroe]

Hey,

I work closely with a property manager that carries a large portfolio. They have different options for you to choose when it comes to leasing out. If you are going to be out of the country, I strongly suggest you take this route. Although you will be paying around 10% of the monthly rent in fees, it will point any/all the headaches towards them.
If you rent the place out furnished then prices will jump to around 15% as they need to do inventory and check on the condition of everything. They also have a option which is around 30% where they will furnish the unit for you. Its simply about numbers at that point - does the additional rent having it furnished offset the additional expense.

Feel free to contact me if you would like further information.

Handling investment properties while still in the city can be a headache. I couldnt imagine doing it from abroad.

[Kavvy]

Never been a landlord, so take my advice with a grain of salt... but for the sake of ease, I couldn't imagine myself not using a property manager while I was out of country.....

I would just meet a couple and get a good understanding of how much $$ they can instantly fix without prior approval and all those details.

Your trusting your biggest asset (or one of) to a for profit organization. Which isn't a bad thing, you just need to ensure it is a good fit.

[Calgary14]

Check out my website for a full discussion on the tax implications of your situation

[fulham]

Did something similar in Vancouver when i left to move here temporarily, Leave it in the hands of the professionals, the peace of mind is easily worth the around 10% fee

[Bigtime]

Anyone else have the annoying Hopestreet radio adverts in their heads now?

[YYC in LAX]

Correct me if I'm wrong, but if utilities are included in the monthly rental rate, then the property management companies won't apply commission to that amount?

[Property Manager DB]

Originally Posted by YYC in LAX

Correct me if I'm wrong, but if utilities are included in the monthly rental rate, then the property management companies won't apply commission to that amount?

I'm not sure about other companies but this is how we operate at Unison;

Unfurnished - Tenant is responsible for utilities.
Sometimes some utilities are included in the condo fees such as heat and water in which case the tenant would only have to pay for electricity.

Furnished - Owner is responsible for utilities.
No, the property management company takes commission for the overall amount because if the tenant reports any problems related to the utilities, such as a leaky faucet or a furnace issue, the property manager handles the issue himself or coordinates the repairs.

[bizaro86]

Originally Posted by Property Manager DB

I'm not sure about other companies but this is how we operate at Unison;

Unfurnished - Tenant is responsible for utilities.
Sometimes some utilities are included in the condo fees such as heat and water in which case the tenant would only have to pay for electricity.

Furnished - Owner is responsible for utilities.
No, the property management company takes commission for the overall amount because if the tenant reports any problems related to the utilities, such as a leaky faucet or a furnace issue, the property manager handles the issue himself or coordinates the repairs.

If there were issues with a leaky faucet or the furnace in an unfurnished rental would you not deal with them or would that then be the owners responsibility to handle?

[Property Manager DB]

Originally Posted by bizaro86

If there were issues with a leaky faucet or the furnace in an unfurnished rental would you not deal with them or would that then be the owners responsibility to handle?

Yes, I would be responsible for coordinating repairs on an unfurnished property as well.

I should have been more clear in regards to the Furnished option with Utilities included...
I usually write in the management agreement that the management fee is only on the rental amount minus the monthly cost of utilities.

Example; $2500 rent minus the Utilities (let's say $140) is $2360.

The owner's take home would be $2006 (15% of the $2360).

In the past Unison has taken the management fee of the overall rental price, but this is something we are changing as it's not fair to charge a fee on a bill which goes straight to the owner.