So you want to be a landlord?

Downtown Ottawa - Georgia Carrol - Ottawa Real Estate Agent - Georgia on Computer with Client 2

Taking a step further into the real estate market by acquiring an investment property can be a profitable and fulfilling experience. On the other hand, it can also be overwhelming and confusing. There are emotional and financial considerations to be made when purchasing an investment property for the purpose of renting it out.

What can you do to prepare yourself financially?

Talk to a Mortgage Broker about your financing options surrounding buying a property for investment purposes
Ensure you have a Nest or Reserve fund for any unforeseen circumstances or repairs down the line. It Is beneficial to be prepared for turnover vacancies, refreshing the rental, and keeping the unit up to code so it meets health and safety standards.
Keep a budget for property taxes, home insurance and long-term maintenance (roof, heating/cooling systems, windows etc.)

What can you do to prepare yourself emotionally?

Knowledge is POWER
Familiarize yourself with the Landlord and Tenant Board and the rules and regulations within the Residential Tenancies Act (RTA)
Use current and well-drafted lease agreements that comply with the mandatory Ontario regulations
Do background, reference and credit checks when screening for prospective tenants.
Be prepared that although you own the property, once rented it becomes someone else’s home and will be treated as such
Be realistic that you will still need to have maintenance costs
Seek advice!

There are many options when it comes to hiring help in managing a rental within the industry.

Doing your homework and creating your budget will allow you to see what best suits your management needs. As an industry-standard, property management companies charge anywhere from 5%-%10 of the total monthly rent. Everything from advertising to screening tenants to collecting rent and coordinating maintenance can be handled for you. This can be a great option for owner’s who do not live in the same area as the rental or who just need a little more help when it comes to managing tenants. At a minimum, consider hiring a Real Estate Brokerage or property management company for the tenant screening and placement to start off on a strong foot.