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Rental condos in Quebec—how to rent your condominium
Popular
with first-time buyers, a condo has many advantages and can be a great earner as a rental. According to the Canada Mortgage and Housing Corporation (CMHC), nearly 20% of condominiums in Greater Montreal
are in the secondary rental market.[1]
Interested in renting your condo? Read on for some tips that will help you rent
your condo worry-free
What is a rental condo?
A rental condo is a condominium for rent. Each co-owner has a private portion that is leased, while the common areas are shared in accordance with the by-laws of the building’s syndicate.
What are the benefits of renting a condo?
1. Return on investment
Condo renting is becoming increasingly popular, especially since selling a condo purchased less than five years ago is not really profitable.[2] And with rent prices rising across Quebec, renting a condo is an attractive option.
2. Maintenance and renovations
Compared to a duplex or triplex, building maintenance is generally managed by the condominium syndicate. A new condo will require very little renovation expenses in the short to medium term, thus maximizing rental income.[3]
3. Rental income
Due to their popularity, modern rental condos are generally easy to rent. According to Logis Québec, the monthly rent for a condominium in Montreal could be as high as $1,124, compared to $708 for an apartment.[4] This is mainly due to the building’s amenities, including a gym, swimming pool, terrace, co-working spaces, etc.
Challenges of renting a condo
1. Declaration of co-ownership restrictions
When it comes to renting their condo, some co-owners are subject to various restrictions impacting the conditions and duration of the lease.[5] Pay close attention to the clauses in the declaration of co-ownership concerning animals, smoke, use of parking lots and common areas.
2. Budget and financial expenses
Before renting your condo, prepare a detailed budget that takes into account the mortgage, condo fees—including the contingency fund—and property taxes so you can set a rent that will get the desired returns.[6] The building’s location will always play a key role since geographical location as well as proximity to public transport and services are at the top of renters’ wish lists.
3. Property damage
After renting your condo, you may wonder what kind of property damage is acceptable. To minimize unpleasant surprises, choose your tenants carefully—in the event of damage to common areas, the landlord remains responsible.[7]
Ready to rent your condo? Get a real estate broker to do it for you. In addition to listing your condo for rent on Centris.ca, they will help you prepare a detailed lease specifying each party’s responsibilities.
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See also:
Demystifying short-term rentals and divided co-ownership
Condominium living: Are you keeping up with the new legislations?
