The Realities of Becoming a Landlord
With the rental market at an all-time high, many Toronto homeowners and foreign investors are trying to capitalize on millennials looking for somewhere to plant their roots. The rise in residential home prices has made owning real estate out of reach for a vast majority of Torontonians. Each year, more and more individuals are being forced into the rental market.
Owning an ‘investment property’ and becoming a landlord is an enormous responsibility, one that many homeowners are not prepared for. This is where the value of Property Management lies. There are many facets of what we offer as Property Managers. Here are the top 4 most important things to consider when becoming a landlord and listing your unit for rent.
1. Pricing, Pricing, Pricing
You want to know what is more detrimental than pricing your rental too low? Pricing it too high. We understand wanting to get the best return on your investment, however, the problem with overpricing your rental is two-fold.
a) It pushes tenant away, and directly into your competitor’s unit. Don’t underestimate renter’s knowledge of the market. Current day tenants are price savvy and know how to get the best deal.
b) It attracts “bad” tenants who after being rejected many times, are willing to pay above market prices to lock down a rental (more on what makes a tenant “bad” to follow).
Want to avoid vacancy? Price it correctly! With years of experience in the rental market, we offer our professional recommendation on pricing your unit in order to rent it to the most qualified tenant in the least amount of time. By the way, this service is FREE at Rent it Furnished.
2. Screening your Tenants
This is the single most important step in the rental process. It’s vital to select only the most qualified tenants as once a tenant is in, it is very difficult to end a tenancy. As Property Managers we are very careful and diligently screen each and every applicant to ensure they are the right fit for your unit.
3. Logistics of being a Landlord
There are many challenges that arise from being a landlord. They can range from something seemingly small, like the WIFI not working (being interrupted from binge-watching Netflix should not be taken lightly) to true emergencies such as midnight floods. As a landlord, you need to act fast, not only for the safety of the tenant but to ensure your unit is not damaged beyond restoration. As property managers, we are on call 24 hours a day, 7 days a week. Beyond that, we have excellent and bonded trades on hand who we trust to do an outstanding job. Speaking of damages…did you remember to get landlord insurance? What about liability insurance? This brings us to our last point…
4. Rights and Responsibility as a Landlord
Did you know it is considered discriminatory to turn a tenant away for having a pet? What about the age-old question of damage deposits- legitimate or not? It is vital that you are well versed in the tenant-landlord act and are attentive to ensure you are abiding by all tenancy/landlord legislation. Unsure of how to prepare a lease and what forms to use? If you are using a professional property manager, this is all handled for you. If not, stay tuned to our blogs will delve into all things Property Management to help you navigate the waters.
Stay tuned for more information and updates on Property Management in Toronto!
Written by Nicole Nusca