9 Tips for New Landlords
You have your investment property. Now comes the work. Here’s what we recommend for new landlords.
1 Secure a solid lease
Having a written rental agreement not only protects you, but also your tenant. Without a written document, it may be difficult to identify what was agreed upon prior to the tenant moving-in.
Your lease should be specific. Outline items such as pets, late rental fee, subletting, noise restriction rules, repairs, and snow and lawn maintenance. Be sure to follow the framework set by the Residential Tenancies Act to keep everything legitimate and fair.
2 Invest in + Care for your property
Something as simple as a fresh coat of paint can increase the value of your property. Landlords might also consider new flooring or updating the lighting to attract new tenants and maximize rental income.
If anything, ensure the property is clean and a safe place to live. Clear vents of buildup and test smoke and carbon monoxide detectors. All this will help keep tenant turnover to a minimum.
3 Have a plan of action
What happens if something breaks or your tenant locks themselves? We suggest having the contacts for a plumber, locksmith and contractor at the ready.
4 Be professional
This may not be your primary income, but take this landlord job seriously. By doing this you are not only respecting your tenants, you are letting them know you and your property are respected as well.
5 Keep a record
When communicating with tenants or maintenance personnel, put all agreements in writing. If you had conversation in person, follow up with a confirmation email just to make sure everything is clear and conclusive.
6 Require renters insurance
It’s not mandatory in the province, however this can help avoid potential disputes if the tenant’s belongings are damaged while on the property. Your landlord’s insurance will cover the structure of the home, but not the tenant’s contents inside.
7 Screen tenants properly
While being thorough may take extra time, doing the work up front will save you from potential headaches down the road..
Ask for their rental history, credit scores, references, proof of employment, and eviction history, if applicable.
8 Comply with the law
As a landlord, you are required to comply with housing laws. Stay informed of the province’s latest standards and keep yourself out of any lawsuits!
9 Hire a property manager
A property manager can be a worthwhile investment if you’re looking to save on the time and hassle involved in owning a rental property, such as marketing your property, collecting rent payments, and dealing with tenant issues. A good property manager can also help manage multiple rental properties if you find yourself overwhelmed with landlord responsibilities.
This might be a suitable option if you don’t live near your property or don’t want to fully commit to the hands-on role of managing the rental. By putting the responsibility of owning a rental home on a third party, you’ll have peace-of-mind that your property is being maintained in a professional and timely matter.
If you can afford the expense, a property manager can help to streamline your landlord duties and facilitate a more hassle-free rental process.
Have more questions about property management, leasing or real estate ? Ask our experts or follow us @clavispm