10 Tips for Landlords
After the recent real estate changes announcement in Ontario, the market appears to be less hot. It takes a little longer to sell and multiple offers are disappearing in many places. There is no guarantee that this trend will prolong for a long period. As happened in 2008, the trend may reverse in a few month’s time. If you are planning to buy an investment property, it’s time to watch the market and buy. In this context here are some tips for buyers:
- Educate yourself before you decide to invest in a residential income property.
- Establish clearly what you may be up against and walk away before it’s too late.
- Be prepared to follow the rules or face the consequences.
- Anticipate potential financial risks – rental income loss due to tenant turnover or evictions.
- Avoid “get rich schemes and dreams”. They seldom work.
- Get professional advice when needed. Winging it can have bad financial consequences.
- Know who you are renting to before you hand over the keys.
- The difference between success and failure as a landlord is what type of property people buy and where they buy the property.
- Don’t be misled. Be prepared to do your own homework. Due diligence is the key.
- Keep informed. Stay up to date, because the rules of the game change.
- Damage deposits are illegal
- Ontario’s landlord-tenant legislation leans heavily in the favor of the tenant.
- Tenant screening is crucial and essential but discrimination is against law.
- Residential private sector tenants cannot be forced out because they have a pet, or that they can’t prevent students from renting, which is discriminatory. However, if they are renting out a condominium, there is an exception to the pet rule, for example, because the Condominium Act supersedes other legislation.
- Educate yourself 2. Network with like-minded people and financiers. 3. Have a professional team ready to assist you. 4. Stay up to date always.
Perrii is a Realtor and a Professional Financial Planner in Ontario. To include him in your team, contact at 416 473 6100 or email: email@example.com