If you decide to buy a condominium as an investment, and you plan to rent it out there is a lot to think about.
This is your property so you have to be very careful who you rent to. Make sure you check all references including their employment status. You have to ensure that they can pay the rent. Do you prefer a male or female, smoker or non-smoker, a couple or single person? Will you allow them to have a pet? All of these things need to be considered.
Also, you need to know that it is very difficult to get rid of a tenant. You can’t just tell them to get out even if they are in arrears with their rent. There is a process to evicting a tenant and it can be costly and very time consuming. Make sure that they sign a lease, and in my opinion, make it a one year lease. You may find that you are not happy with your tenant so after a year you can find someone else, and that is if you can get them to leave.
Be prepared to be a landlord. All concerns regarding your suite will be directed to you either by the builder or your tenant. You are responsible for your unit and your builder will usually want to deal directly with you. If you would prefer that the builder deal directly with your tenant, you will have let them know in writing. They will need to know that your tenant has permission to deal with all issues regarding your suite.
I have witnessed and heard many horror stories regarding tenants. Some who caused problems in the building, some who didn’t take care of the unit, and some who didn’t pay the rent on time and kept making excuses. You have to be totally prepared to deal with these kinds of things.
I have also witnessed wonderful tenants, who treated the suites as if they were their own. They were pleasant to deal with, very respectful, and never had any problems paying their rent.
It really is a crap-shoot when choosing a tenant. The best scenerio would be if someone referred a tenant to you, at least you know they come highly recommended. The bottom line is DO YOUR RESEARCH, when choosing your tenant, and chances are, you will be just fine.