You see it all the time. When looking at a listing they remarks always mention something along the lines of "don't miss out" "unpack and relax" or the always enticing "move-in ready". But let's look
Buying An Investment Property? Tips For New Landlords
Dated: May 12 2021
Buying a home is exciting- but what if you don't plan on living in that home. Investment properties can be a very lucrative if you are educated in the pros and cons of being a landlord. While you may think rentals are a quick way to cash in, before the dollar signs glisten, here's a few things to consider when purchasing a property as a rental.
SCREEN YOUR APPLICANTS Well.
This is obvious, but it’s an important one. A well screened applicant will save you both time and money in the long run. People can provide you with one story, but the reality is much different.
Asking for proof of income, their employment status and a credit check will help you determine if this tenant is financially responsible. It's also a good idea to ask for a landlord reference, or even an employer to get a feel for the real them. Find out if they're a responsible person - that's the type of person you want living in your investment.
UNDERSTAND WHAT YOU’RE REQUIRED TO PROVIDE.
As a landlord, you are legally responsible for the property and are required to provide certain things for your tenants including but not limited to
– Keep the home in a state of good repair
– Not to limit the supply of utilities for your tenants (electricity, heat, water etc.)
– You cannot seize the tenant’s property for any reason (e.g. they didn't pay their rent)
Knowing the legal rules and parameters of being a landlord can save you time, money and headache down the road. Just as tenants have responsibilities, you do also. Here is a link to the Ontario Government Site for more information.
THINK ABOUT THE DURABILITY & Longevity of finishings
Any renos you're thinking of doing to your investment property should meet 2 criteria.
1) Is it aesthetically appealing? and most importantly 2) Will it withstand wear & tear?
Granite counters may look beautiful, but may not hold up with some tenants.
Laminate flooring is a great option that is easy to maintain and won't require extensive upkeep like refinishing expensive hardwood or ripping up stained carpets. Painting in neutral tones will also make it more appealing to potential tenants and also easy to upkeep.
As a side note- remember this is an investment property. Putting in lavish finishes out of your budget doesn't mean you can raise your rental price beyond market value- not everyone will pay for your overspending, so keep it realistic and have a budget to make the home both welcoming and functional!
GET YOURself a REALTOR®
Here at RLP Crown we can help guide you through your rental journey. We frequntly work with landlords, and tenants with a network that will help you get your home rented faster. We can list your home to promote maximum exposure, connect you with potential tenants, ensure the lease ensures protection to everyone involved, and more. Reach out we'd be thrilled to help you on your journey as an investor.
As the owner and manager of this full service real estate company, please feel free to contact me to place you with the best agent for the job. Our sales staff can accommodate you in your retirement r....
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