For any landlord, new or old, there are quite a few basic laws, rules, and ideas to follow when it comes to your rental properties. However, there are still so many things that very few landlords realize when they go into the business.
Take a look at these five facts, no one tells you when you enter the housing market as a landlord.
Don’t overlook buying a rental property in popular neighbourhoods
While property in run-down and less popular neighbourhoods may be cheaper, think about the big picture. More people will want to live in the booming communities like Ottawa. And the result of better neighbourhoods is better credit requirements and a significantly higher chance of quality tenants.
Besides, newer properties mean fewer repairs on your to-do list. Plus, rent can be a lot more for these nicer homes, so your break-even point comes a lot faster
Be prepared to handle many different jobs
- Being a landlord comes with many tasks that people often do not think about.
- Advertising the property, making repairs, collecting and managing the rent, taking control of debts, are just a few things that will top your list of things to manage.
- It can be quite overwhelming when everything hits at once, so make sure you know what to expect you will be doing before it is too late.
Get a solid lease in place
Often, bad tenants can make the landlord job seem impossible, but starting them off on the right foot almost always guarantees a smooth road.
First, cover your basics like rent and utilities. Then get down to the details.
You never know when someone could punch a hole in the wall, rip out cabinets, or light too many candles, so make sure before you agree to let them stay that they know all of the repercussions for mishandling the property.
Having a particular guideline for all tenants to follow can keep things under control.
Do not underestimate the budget for vacancies
Budgeting is a big part of being a landlord, and yet so many go into it without having a clue on how costly things can be. Having vacancies is something only so many landlords know how to deal with, and it can end up being much more expensive than it needs to be.
Have enough money set aside just in case someone moves out before their lease, or if no one has rented out a property after another lease.
You will have to work outside of regular business hours
Property problems occur at hours all around the clock, so do not expect your typical 9 to 5 in the landlord business. After all, most people live their lives elsewhere during the day and only come home at night, and that is when they will realize their problem.
Also expect to give tours of your property outside of regular business hours, since clients will be working all day and will most likely stop by before or after their workday.
Being a landlord is a job that comes with many responsibilities that people too often do not realize until it is too late. Before jumping in, make sure you know all of the details, and it will ensure you a smooth career.