If you are in the market for a vacation condo for your family to use and to rent out for additional income, then there are many things you need to consider before buying, including each of the following:
The Condo Association's Regulations About Subletting Your Condo for Income
When you own your own single-family home, then you are free to rent it out at your will. You can rent out a single room or the whole house whenever you want. However, when you own a condo that is part of a condominium association, this is not always the case. Many condo associations limit your ability to rent out your condo or even a single room. Some disallow renting at all, while others limit the number of days you can rent each year. Before you purchase a condo, first you need to determine if you will be able to rent it out. That last thing you want is to buy a great condo only to discover that you cannot rent it out at all.
The Condominium Association's Limitations for Pets
If you have pets that typically travel with you on vacation, then you need to verify that the condo association does not have any restrictions to prevent you from doing so. Most condo associations limit the size and number of dogs and cats you can have in your space.
Rather than taking someone's word on the topic, make sure you get a copy of the CC&Rs for the condo association and read through them to see what they say about subletting and pets.
The Policy on Splitting the Cost of Exterior and Structural Repairs
One of the major differences between buying a single-family home and a condo is that you are only partially responsible for all of the repair costs to all of the association's properties. For example, if your condo is in a high-rise building, then you will pay a portion of the bill to replace its roof when it needs a new one.
Generally, you pay a monthly condo fee and the association uses those fees to pay for repairs. However, if the condo association is not in good financial shape or has many unforeseen expenses in a short timeframe, then you will be sent an additional bill known as a special assessment. For this reason, it is important that you check out the financial stability of the condo association before buying.