I am usually not attracted to condos, when it comes to rental properties. At the moment, I have a portfolio of condos I am interested in buying. The reason for my interest is because the purchase price/numbers make it a good deal. Even with the HOA fees, they cash flow well and are 100% occupied.
I was thinking about ways to cut my costs with the HOA fees. Some landlords say just include it in the rent. That would drive rents up, which is not good for competition with other condos that are charging less. I think I might be able to get away with some lease options, which would bring a premium rent of $100-$200 more. I think tenants might look at that differently vs just raising the rent. Thoughts?
@Theresa Harris I am not relying on the tenants to pay the HOA fees. Sorry if that's what the post sounds like. I would be paying the HOA fees. The more rent I get from the tenants the more I can allocate that towards the HOA fees to cut my expenses. Instead of just increasing the rent the moment I buy it. I would like to offer the tenants a lease option, which could end up bringing premium rent from some units.