Turning Primary Condo into Rental - Newbie Investor

[Anthony Blackmon]

Hi BP Family,

I've purchased a condo as my primary residence May 2019 and after getting bit by the bug for RE Investing of early December 2019, my goal is to do small renovations and turn it into a rental property. I've read my condo bylaws and lucky for me, I can turn it into a rental after staying in the property for 1 year. I've analyzed the property several times and I came to the conclusion on the lowest, median and highest rental income I'll take which range from $1375-1500. After my analyzing, I am wonder when renting out a condo do the renter pay the HOA fee($185) or the Landlord? This is something I didn't factor into since my assumption will be the renter will cover HOA fee on top of rental rate. I'm open to hearing your suggestions.

[Josh Castellanos]

@Anthony Blackmon Hey Anthony,

2 of my properties are condos and I would never trust or allow my tenants to pay the HOA dues.

You as the owner will always be responsible for the HOA dues. If you put the responsibility of the HOA dues on your tenant and they don't pay them, or pays them late every month the HOA will come after you not the tenant since you are the owner.

It's always best practice to factor your projected rent with all housing expenses including the HOA.

You should re-calculate your projected rental amount and do some further research to see ideally how much you can get for the rent and see where you are after all the monthly expenses (mortgage, taxes, insurance, HOA, etc). Also keep in mind there will be things that break from time to time in the property that will cost to fix / replace you should factor that in as well.

Best of luck!