Converting your condo into an income-generating rental property sounds enticing, but it’s not always the best option. Depending on market conditions, your financial status, long-term goals, and other factors, it could be better to sell your condo as part of your move-up journey. 

If you’re on the fence about whether to sell your condo or rent it out, there’s a lot to consider before you settle on one particular option. 

In this blog, we’ll take a look at what you should know about renting out your Calgary condo versus choosing to sell. 

Owning a Rental Property: The Full Scope

If you’re actively considering turning your condo into an income property, there’s a good chance you’ve heard about how Calgary’s rental market looks right now. As a quickly growing city, the demand for rental housing in Calgary is almost as high as the demand for real estate.

It’s not hard to see the appeal of owning a rental property – especially with the promise of earning strong passive income every month. However, it’s important to have a complete and realistic idea of what owning an income property involves. While not a full-time job, being a landlord is not a completely hands-off role either. You’ll have a number of obligations and responsibilities ranging from tenant rights and communication to property upkeep and beyond. 

If you’re banking on an automated property management experience, you may want to reconsider whether turning your condo into a rental property is the right path for you. 

Cost Vs. Benefit

On top of the logistical and communication aspects of being a landlord, there are also the financial elements. Not only will using your condo as a rental property mean paying off two mortgages but there are other costs to account for too. 

Recurring expenses such as insurance, certain utilities, property maintenance, and more will all eat into your returns. While your rental’s cash flow may cover all or part of these expenses, you may not have as much leftover income as you initially expected. Not to mention, you’ll also be paying income taxes on your earnings too. 

Moving up from a condo to something bigger? Check out these blogs for helpful tips. 

The Advantages of Selling Today

While the current state of Calgary real estate is proving beneficial for income property owners, it’s equally opportunistic (if not more so) for home sellers. Right now, the demand for real estate in Calgary is exceptionally high. With all kinds of buyers in the market, most sellers are seeing fantastic returns on their properties.  

Further, Calgary’s unique position as a destination for relocators who are actively searching for affordable homes is specifically driving up demand for condos in the city thanks to their comparatively lower price point. 

Historic Market Trends

Now is a great time to sell, however, conditions haven’t always been so favourable for condo owners. Calgary’s real estate market has a reputation for boom and bust, and trends can be even more volatile when it comes to condos. While we’re finally seeing gains, most condo owners had to hold onto their property to avoid selling at a loss up until fairly recently. 

With that in mind, it’s important to consider how the market may shift again in the future. If you choose to rent out your condo, you could find yourself stuck in less-than-deal market conditions when you’re finally ready to sell later on. However, if you choose to sell today, you’ll be entering a market that heavily favours you – maximizing your chances of a profitable sale. 

Opportunities For Existing Landlords

If you are currently using your condo as a dedicated income property, today’s market dynamics could present the opportunity to upsize your investment. Depending on your property type and how long you have owned it, it might be best to sell and move the money into a more lucrative rental.

Curious about the advantages of owning an investment property in Calgary? Explore these other blogs next. 

Ready to Sell Your Calgary Condo?

Getting a great result on the sale of your condo starts by working with a team of top Calgary real estate agents. At Dolce Real Estate Group, we’ve been selling Calgary real estate for well over a decade. Leveraging our experience of working in a wide range of market conditions, our time-tested selling techniques outshine the average agent. 

Working with both local condo hunters and incoming relocators, we understand what buyers are looking for better than anyone and can tailor your listing to attract plenty of interest. 

Searching for a local team to help you get a great return on your Calgary condo? We can help. Call 587.229.7108 to get in touch or click to send us an email. 

Get Our Newsletter

And get all you need to keep up with Calgary real estate.

Sign Up