How to do Rental Arbitrage in Your Condo

Do you have a condo? Do you own it? Maybe you are renting it? Do you live in your condo full time? Or is your condo simply for vacation purposes? Regardless if you own or rent your condo, regardless if you live in it full time or just certain parts of the year, your condo could actually be making you money. Of course, if you own your condo you know you can rent it out. But maybe you don’t want to rent the entire condo out. Or maybe you feel like because you do not own the condo you cannot rent it out entirely.

Renting out your entire condo, or a room in the condo and renting out a condo you are renting from someone is possible and legal. It is called rental arbitrage. Rental arbitrage is a growing way people are making extra income and some are making a massive five figure a month salary from renting out their entire apartment, condo or home. Some people choose to only rent a single room in their home. This is still rental arbitrage. Many people have chosen to do rental arbitrage because it helps them pay the rent or mortgage. Some choose to do renal arbitrage because it allows them to have supplemental income. Some are participating in rental arbitrage because this is how they are getting their feet wet with real estate.

You may be curious with how you will rent out a condo that you are renting from someone else. You may question the ethics or legalities of renting a piece of property that is not yours. It is legal. It can be done. It is called subletting. Subletting is simply renting out a space that you are renting. You would sign a sublease with the person who would rent from you. You would still be responsible for the property since the master lease in your name. But you would be a mini landlord over the person who subleases from you. People choose to sublease because they may want a temporary place to stay. They may be seeking month to month leases. Subletting offers people the opportunities of living in someone’s home for a temporary amount of time without signing a long-term lease.

For example, you could have a Single family condos Bankers Hill CA and you may be renting these condos. You can then list your home on a subletting website to find someone interested in temporary living there. Usually, you will want to sublet for at least fifteen days out of the month. You want to sublet enough days so you can make enough money to pay your rent and make some profit. Get a sublease and sign the sublease with the person. Charge them a daily rate. Daily rate calculators are available for your market. This is how you conduct rental arbitrage.

Rental arbitrage is becoming more popular and easier to do than what you may think. Rental arbitrage puts you in a position to start your very own real estate empire for less money than going out and purchasing properties. Research rental arbitrage to learn more about how you can get started.

Get a Move On With Real Estate

When it’s time to make a big change, life may offer a subtle sign, like a spouse’s note on your pillow that reads, “I never want to see you again”. But how do you know when to nail that “For Sale” sign in the front yard of your real estate?

As life-changing decisions go, selling your home is right up there. Whether it’s to take a promotion, care for aging parents or something more personal, only you can say if it’s the right move for you. But if the choice to sell real estate has been made and the only thing left to decide is the timing, a few pointed questions should tell you if that time is now.

Can We Afford it?

It sounds like an obvious question. Yet given that household total credit-market debt – mortgages, consumer credit and non-mortgage loans – rose to 162.6 per cent of disposable income last year (how is that even possible?), it’s not. Maybe you got in over your head with your first home, but now that you’re slightly older and much wiser, take a close look at your finances before making a move with real estate:

• Is all of your non-mortgage debt paid off?

• Do you have an emergency fund with 3-6 months of expenses put aside?

• Has your home recovered enough value to give you at least 20% equity for your purchase? This will enable you to make a 20% down payment on your next home, saving you thousands of dollars in mortgage insurance costs. If you don’t know the answer, ask an experienced realtor for a free comparative market analysis that will indicate the approximate market value of your real estate.

If you answered “yes” to all three, you may be ready to take the plunge in selling real estate. If you’re not sure what an emergency fund is, you still have work to do.

Are We Still Emotionally Attached to our Current Home?

Do you tear up when you see the notches in the wall where you measured your child’s growth, or do you just think “they must have an app for that now”?

On the other hand, you may have recently experienced a divorce or other loss that necessitates a fresh start.

Usually the reality is somewhere between those two extremes. Whereas the question about finance was directed at the head, this one is clearly for the heart. If you’re quiet for a moment, it will tell you what to do. You just have to listen.

Remember, an expert realtor can offer a wealth of advice on the sale of your real estate. If you’re not ready to take it, however, you’re not ready to sell.

Does our Home Still Fit our Lifestyle?

In most cases, moving out of real estate is more than just moving over. It’s moving up or down. If you have a new addition or one on the way, it might be time for another bedroom or two to keep the “happy” in “one big happy family”. Conversely, when the kids (finally) leave the nest, downsizing can mean less upkeep and more time to enjoy the peace and quiet. After all, you’ve earned it.

With so much at stake and so many factors to weigh, the decision to sell your real estate is rarely a simple one. Nevertheless, taking stock of your finances, emotions and lifestyle can go a long way to giving you clarity. And if you should get that nasty note on your pillow, look on the bright side. Your moving decision just got a whole lot easier.