The homeownership rate is continuing to decline in Canada as more people are opting to rent. Renting out your property is more than just signing a few papers and collecting profit every month. You’re responsible for giving your tenant an appropriate space to live in and for a proper price. Know how you can make the most out of your income property in North Bay with this short guide.
Assemble a Team
You can survive as a landlord with a property manager and property maintenance with you. The property manager can do almost all the work for you for a commission. They can handle most of the paperwork, including leases, tenant advertisement, and some legal notices. Some of them can even refer a good property lawyer.
Short-term or Long-term Rental?
Both short term and long term rentals have the potential to give you a good amount of profit. It all boils down to where your property is located. A long term rental provides stable and consistent profit, especially if you find a good tenant. Plus, you don’t have to worry as much about furnishing since the renter will most likely take care of it.
Short term rentals, on the other hand, provide large bursts of profit for a brief period. It is great if your property is in the city or near a tourist spot. Most of your renters will be on holiday or business. Because their stays are brief, the return is higher than you’d get from your long-term tenants. However, you have to maintain the property more than you would for long term rentals. And like most short stay properties, they need to be fully furnished and have telco and TV service.
Find a Good Tenant
If you hired a property manager, you can sit back and have them do tenant screening for you. If you don’t have a PM or you want to have a hand at sifting through the possible renters, check their credit scores first. Tenured renters often have written permission ready for you to pass on to credit score checking services such as TransUnion or Equifax.
It’s important to note the employment of your renters as well. You don’t want to dismiss a newly-employed college graduate who’s on their way to a good credit score.
You should also take a look at their criminal history by contacting your local RMCP and requesting a name search on your prospective tenants. You should also contact their references such as employers and their former landlords to gauge your renters’ reputation.
Settle on a Lease
A lease protects both you and your tenant’s rights. It should provide a proper agreement that complies with rental and insurance laws. It’s best to contact a lawyer to prepare a lease for you. Have them inspect the property with you for a while and discuss your expected rent and other terms you plan on having. These can include who’s responsible for repairs, penalties, pet policies, and more. These terms should be communicated properly to your tenant during the interview. You also have the responsibility to follow your rules to the letter.
Having a rental property is your chance to generate profit on the side or full-time. It’s vital to know your rights as a landlord and an owner. Communicate properly with your property manager and lawyer and read up on laws and management practices yourself. Every good tenant needs a great landlord like you.
