Becoming a landlord is a great way to not only make money but to enter into the business world as well. It can be a highly rewarding experience, but it’s not without its drawbacks. Before you start your newest endeavour, it’s important to familiarize yourself with the ins and outs of the job, as well as potential problems that could arise.
If you’ve recently purchased a rental property, congratulations, you’re now a business owner. While that’s definitely worth celebrating, there are also a lot of things to be mindful of. Here are some tips for first-time landlords:
- Thoroughly Screen Tenants: You will get many applications to live in your building, but it’s important you find the right one. Take your time to carefully go through every applicant. Ask about their employment and income, perform a credit check and contact their previous landlord for a reference.
- Know Your Legal Responsibilities: In accordance with the law, the environment you provide for your tenants has to be safe and livable. What that means is:
- You have to keep the property in good condition.
- You can’t limit the supply of utilities (water, electricity).
- A tenant has a right to “reasonable enjoyment” that cannot be interfered with.
- A tenant’s property cannot be seized for any reason.
Familiarize yourself with the laws and regulations in your province as they can vary.
- Take Advantage Of Resources: There are many services out there that can help you out a lot. Joining a landlord association can provide valuable advice from veteran landlords. You can also hire a property manager to take some of the workload off of yourself.
- Make Sensible Renovations: Be smart with how you renovate your property. It’s not worth investing in expensive renovations if they don’t result in more money for you. It’s important that you invest in smart solutions so your property is durable and doesn’t need frequent repairs.
Insure Your Investment
Above all, your rental property is an investment. Even if you take all the necessary precautions to make sure you’re set up for success, problem situations can still arise. Damaged caused by fire or water are often out of your control, and without the proper insurance, these events can be catastrophic.