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:

  1. Educate yourself before you decide to invest in a residential income property.
  2. Establish clearly what you may be up against and walk away before it’s too late.
  3. Be prepared to follow the rules or face the consequences.
  4. Anticipate potential financial risks – rental income loss due to tenant turnover or evictions.
  5. Avoid “get rich schemes and dreams”. They seldom work.
  6. Get professional advice when needed.  Winging it can have bad financial consequences.
  7. Know who you are renting to before you hand over the keys.
  8. The difference between success and failure as a landlord is what type of property people buy and where they buy the property.
  9. Don’t be misled.  Be prepared to do your own homework.  Due diligence is the key.
  10. Keep informed. Stay up to date, because the rules of the game change.

Bonus tips

  • 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.

Actionable points:

  1. 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: perrii@perrii.com


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