Montreal is a great city in which to buy an investment condo. The Montreal real estate market offers many options for prospective investors in all prices ranges. A good investment condo in Montreal can be purchased for as little as $200,000.
When looking for a great investment condo in the Montreal real estate market, it is important to try to stay centrally located as much as possible. This will make it easier to rent the unit and for good income. If possible, always try to buy a unit that has parking included as this will increase the rental value and make it once again easier to rent.
There are different approaches that can be taken when renting out Montreal condos. It is important to decide what type of rental you are willing to offer prior to purchasing an investment condo. There are basically two options for renting out an investment condo. It can be rented fully furnished for short or long term or it can be rented out semi-furnished for long term. Different buildings have different rules when it comes to renting out private portions so it is important to verify those rules prior to making a purchase. Some building will not allow leases of less than 1 year.
There are advantages and disadvantages to both types of rental approaches. When renting out a condo in the Montreal real estate market as semi-furnished (includes appliances only) the term of the lease will normally be for 1 year or more. This approach is somewhat less work as the tenant will stay for long term and the owner will not have to look for prospective tenants too often. However, the rental income will be substantially less than if the Montreal condo is rented as a furnished short term rental. A fully furnished condo will come fully equipped and will normally include heat, electricity, cable, and internet. The income generated by a short term and fully furnished rental in the Montreal real estate market will be superior to that of a traditional rental. However, the owner will have to look for prospective tenants more often and risk having vacancies for certain periods out of the year.