5 Tips For Becoming a Successful Landlord

If you’re ready to become a landlord, it could be one of the best financial decisions you ever make. Steady monthly rent can lead to a higher income and a better quality of life. Of course, that outcome isn’t guaranteed—even if you choose the right property. There are many steps you’ll have to take on the path to an impressive ROI, and ensuring you understand the process is one of the most important.

Here are five tips for setting yourself up for success as a landlord…

1) Know your responsibilities

Maybe you have a friend or family member who makes it look easy. Perhaps you’ve been hearing about the benefits for years, and now you’re ready to take the plunge. Whatever your reason for wanting to become a landlord, you need to know that it isn’t the easiest job in the world—and it comes with obligations.

Before you commit, do a thorough read-through of the Residential Tenancies Act. This piece of Ontario legislation will lay out your future responsibilities, along with rules about what you can and can’t do. From rent to maintenance to when you can enter a unit, reviewing the basics will help you make an informed decision.

2) Research the financial aspect

While being mentally prepared for your new duties is crucial, so is understanding the financials. Can you afford the costs associated with an income property? Will the return be worthwhile? The answers to these questions may depend on the property you’re considering.

For each space you’re seriously looking at, determine the rent you can charge. That may mean talking to other landlords in the neighbourhood. Don’t forget to think about taxes! Being aware of potential deductions—including capital and current expenses—can save you a bundle.

3) Build your network

Even if you’re a jack of all trades, it’s unlikely that you can fulfill all of your duties as a landlord without any help. Providing a safe home that’s in good repair—and responding to any major issues that may arise—requires time, effort, and money.

From leaks and water damage to broken appliances, there’s no shortage of issues that a landlord has to tackle. Having the right people in your network (including electricians, plumbers, and pest control professionals, among others) can help you get the job done right.

4) Screen Carefully

It’s every landlord’s nightmare. Whether they don’t pay the rent on time or refuse to treat your property with respect, a bad tenant can cause a lot of stress. Luckily, careful screening can help you find someone reliable.

From the reason they’re moving to their employment situation to whether they have pets, asking the right questions is key. You should also look into your potential tenant’s online presence, call their references, and seek help from an agent who understands the rental market.

5) Get help if you need it

No doubt about it: being a landlord is a big job. You might find that you’re perfectly suited for some parts of the job, but don’t have the bandwidth to do it all. In these cases, finding a qualified property manager is key.

If you take this step, you may want to start by seeking referrals (your agent can be very helpful in this regard). For each potential candidate, find out how they advertise vacant properties, what their tenant lease agreements look like, and their overall approach. Don’t forget to ask the tough questions—like how they handle evictions!

Ready to find your ideal investment property? Get in touch to start exploring your options!