Updated April 14, 2023
A condominium (“condo”) lease agreement is between an owner of a condo unit and a tenant that agrees to rent for monthly payment. The individual(s) that decide to lease the space will be obligated to uphold the rules and regulations of the association and they should have all rights to use any of the facilities, common areas, and have any other privileges of the community (unless otherwise stated in the agreement).
What is a Condo?
A condo, short for condominium, is a unit of property amongst other similar units that share the rights to the property’s common areas. Most residential high rises you see in cities are condos. Each owner within the condominium pays an “association” fee which goes towards the maintenance of the property and salaries of those employed by the association (Doormen, cleaners, etc.).
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How to Rent a Condo
Know your state’s rental laws – Once you decide to turn your condo into a rental, you become a landlord which means you need to familiarize yourself with the landlord-tenant laws of your state. For example – the city of Boston in the state of Massachusetts requires rental owners to register their property with the city each year. Failure to do so will result in majorfees and possible legal implications. What is the maximum I can charge for a security deposit? How much can I charge for a rental application fee? These are the type of questions you will need to seek and find answers to in order to successfully rent your property and stay out of legal trouble.
Check with your condominium association – Not only is a condominium association responsible for the property’s day-to-day operations, it lays out the rules that condo owners must abide by including if leasing is allowed. To take it a step further, some associations even require an interview of the lessee for approval. The tenant may have to be registered with the association/management office if they need security passes or fingerprinting in order to access common areas.
Screen potential tenants – If you are new to being a landlord, it’s important to know about the Fair Housing Act which protects tenants from landlord discrimination against race, color, natural origin, sex, handicap, religion, or familial status. A good way to avoid discrimination is to setup a screening process which is the same for every prospective tenant. It is recommended to require all prospective tenants to fill out a Rental Application which will allow you to perform a credit, criminal and background check.
Sign a lease agreement – Once you have approved your tenant, you need to get the lease terms in writing by using a Condo Lease Agreement form. The form will let you enter the terms of the lease, rent amount, security deposit, parking, utilities, pets etc. All parties must sign and date the agreement in order for it to be valid.