If you’re thinking of purchasing a condo as a source of income, you’re in good company. There’s no shortage of savvy investors looking to capitalize on the demand for units in and around Toronto. While these properties tend to be highly marketable, selecting the right living space is often the key to achieving the best possible returns.
Of course, part of finding the ideal investment condo is identifying a target renter and aligning your purchase with their needs. That said, seeking out in-demand features and amenities can help ensure that the property you choose is attractive to most potential tenants.
If you’re looking to make a wise condo market investment, here are five things you should look for in a unit…
1) Space
When it comes to rental units, square footage matters. Having said that, it’s a mistake for investors to assume that bigger is always better. While larger condos are ideal for some renters—such as growing families—they’re not right for every demographic. In fact, there’s currently a strong demand for studio units in Toronto’s rental market, which are perfect for students and young professionals. To generate as much interest as possible, ensure that the amount of space you’re offering meets the needs of the renters you’re targeting.
2) Well-maintained common areas
Carefully-maintained common spaces will instill potential tenants with confidence before they even set foot in your unit. For this reason, it pays to look closely at the lobby, hallways, and amenities in any building you’re considering. If they’re unclean or in poor general condition, it will be a red flag for renters—and it should be for you, too. In contrast, cleanliness and ongoing upkeep efforts are signs of a healthy condo board, which could mean fewer headaches for you as a unit owner.
3) Parking
If you get the opportunity to purchase a parking space with your condo, it’s worth considering. Having a space to offer can expand your pool of potential tenants and boost the value of your unit. Even if you end up renting to someone who doesn’t own a car, you may still be able to capitalize on the high demand for parking in Toronto. That’s because may buildings allow owners to rent their spots out separately—just be sure to check with management before factoring in this potential source of income.
Accurate information is essential whether buying, selling, or investing in real estate. A few of our latest posts will help you stay up to date:
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4) Security
Safety is a major consideration for most renters, which is why security features can be a significant selling point. Entry keycards, cameras, and motion detectors can all provide tenants with peace of mind—which is worth remembering when you’re selecting your investment unit. If you choose a building that doesn’t offer these measures, make sure that its existing safety features are in good working order. There should be no broken locks or doors that don’t close properly.
5) New appliances
Clean, modern appliances can up the convenience factor associated with condo living—and make a unit appear more polished than it otherwise would. Stainless steel fridges and dishwashers are incredibly popular, as are newer-model washing machines and dryers. These items can provide the “wow” factor that could encourage renters to pay a little bit more in monthly rent for your condo.
Investment units in Toronto have the potential to provide high returns on investment. By knowing what to look for and thinking carefully about your target renter, you can set yourself up for success before you make a purchase.
Looking for the perfect investment condo in Toronto? Reach out today to learn more about what renters are looking for—and what’s available on the market right now!