The Ottawa Citizen recently looked at two of the latest trends happening in Ottawa’s housing market that happen to coincide with one another: a drop in rental real estate construction and, just like everywhere else in the country, an increase in condo construction. These two trends have led to another trend: landlords that no longer buy apartment buildings to rent out, but one or two single condo units. And that has led to tenants-to-be wondering whether they should rent out of a condo, or a traditional apartment building. So, what’s better?
It all really depends on what you’re looking for, and how much you’re willing to pay for it. According to The Ottawa Citizen, the rental rates on condominiums can be 30% – 40% more than when you’re renting from a commercial landlord in an apartment building. This is because in addition to the Ottawa mortgage the owner must pay, there are also homeowner’s association fees and additional condo fees that will be added to the rental price. What you don’t get in a budget-friendly condo rental price though, you will get in convenience and modern amenities.
Those condo fees pay for things like gyms, swimming pools, and in some cases, even laundry service, and you’ll have access to all of those as a tenant in a condominium; they might be hard to find in a traditional apartment building though. Condo units are also generally much newer than those in apartment buildings, and they often have many different upgrades, modern appliances, and contemporary layouts. Most Ottawa condos are also located very close to the downtown core; so whatever you don’t find inside the building you’ll be sure to find outside of it.
Renting a condo isn’t perfect though. Common rental issues can sometimes become confusing in condominiums though because a third party comes into play – the homeowner’s association. If something goes wrong in the condo, who’s responsible, and who is the tenant to contact? Is it the owner or the association? And if it’s the association, how quickly is the repair going to be made? While property management companies will most likely respond to any tenant concern or issue right away, the same might not be true for homeowner’s associations. This is because these committees are used to dealing with owners and expect owners to fulfill certain responsibilities on their own. While they may make some exceptions for tenants, that still doesn’t mean that they will be the priority.
Whether want to rent a condo unit or a unit out of an apartment building will depend on your preferences and your budget. But, what about the flip-side? And what if you’re trying to decide between buying a condo unit, or an entire apartment building? Nothing has really changed there. While condo construction goes up, prices are going to at least remain steady, if not drop slightly. But buying an entire building can also have fantastic returns, even if it is a bit more expensive initially. In either case, the longer you own the more home equity you’ll build, and the more profit you’ll reap.
