Buying a Rental Property in Canada

Work more efficiently and earn more money. Isn’t that the dream we all share?

I have a lot of people just like you asking me if buying a rental property in Canada is a good idea for them.

Being a property investor and a landlord is a second job. You need to evaluate if this is the right fit for you.

Now, while I can’t make the decision for you, what I can do is give you the information so you can then make your own informed decision if this is right for you.

Here are some Top Homework Tips to Buying a Rental Property in Canada:

1. Research the neighbourhood you are looking at
Not researching a neighbourhood is a common (and sometimes costly!) mistake investors can make. Look at other rentals in the area. Find out what demographic of people live in the area. Find out what the going rate of rent is. Make a list of all the pros and cons. Make sure to mention the amenities and pluses when advertising.

2. View the proposed property from the eyes of the renter

Successful landlords and investors imagine themselves living in the property. Is the neighbourhood nice enough for you to live there? Is the house kept up well enough that you would be proud to call it home? How does the neighbourhood look and feel?  What are the attractions to the neighbourhood? Seeing others who live in the neighbourhood will give you a good indicator of the people your place will attract.

3. Assess your finances

Do you have enough for a sizeable down payment?
Do you have enough of an income to cover surprise costs like fixing a roof/plumbing/leaky basement?
Do you have enough money to cover all the bills, especially if the house becomes vacant (this is often overlooked).
How much income will your property generate?

4. Know the Landlord/Tenant Act Thoroughly
Learn about your rights and responsibilities as a landlord. Even if you hire a Property Manager, you will have certain responsibilities for anyone living on your premises. You need to be able to protect yourself and know what is acceptable and expected of you and your tenants.

Remember, these tips are just meant to help you assess if you want to become an investment property owner.
There are many more steps I will help you with once you’ve made the decision!

I have lots of clients who are very successful landlords and who absolutely love owning rental properties.
If done properly, investing in a rental property can be a great way to diversify your investment portfolio.

Decide if this is right for you and I will help you make it a reality. Speak to you soon!

Our team of real estate sales professionals is committed to finding you, your dream home. Whether you’re looking to buy or sell, the Karen Paul team is here to help with any questions.