In Canada, 26% of homeowners own rental properties. It’s no wonder when landlordship allows Canadians to generate consistent passive income over a period of years or even decades! Whether you’re looking to pay off your mortgage or a student loan, expand your investment portfolio, or start making money off of a house that just won’t sell, transforming your home into a rental property can be a viable solution. If you’re considering making the switch from simple owner to landlord, make sure you prepare yourself by doing these four things before you even list the house for rent.
Renovate & Upgrade
Attracting reputable tenants means creating a space that they will want to live in. Examine the space for areas that may need to be upgraded but don’t get caught up in unnecessary aesthetic changes if there are other places that need attention. Cost-effective renovations such as kitchen cabinet refinishing, bathroom upgrades, and new windows will go a long way in convincing a potential renter that they could call this place home.
Get Insured Properly
Your current homeowner’s insurance won’t cover certain scenarios that may occur in a rental situation. For example, as soon as you become a landlord, you become partially responsible for the safety of your tenants. If something happens to them while in your rental property, you are liable. The proper insurance will help to mitigate these costs in these unfortunate cases.
Know Your Rights & Responsibilities
As a landlord, you will have certain rights and responsibilities towards your tenants. In Alberta, the Residential Tenancies Act outlines what is legally expected of you. It is important to familiarize yourself with these points so that you aren’t caught off guard by a situation or a renter that forces you to make a hasty and uninformed decision.
Figure Out How You Want to Run It
Another important step is to decide how you are going to run your rental property. Are you going to be the sole point of contact and carry out all of the necessary duties such as coordinating repairs, collecting rent, advertising, and more? Or will you contract out certain responsibilities to a property manager or property management company? This choice is highly personal and depends on your situation. For example, if you are living in the home or close by, you may consider self-managing. However, if you live further away and have other time commitments, it may be more beneficial to enlist some professional help.
If it’s time for your home to make you some money, turning it into a rental property may be the perfect solution. To take advantage of our tailored property management services in the Calgary area, request a quote with us today!