A New Landlord's Guide: 4 Things to Know About Property Rental
So, you own a property, and you’re thinking about renting it out. It’s probably obvious that there are loads of pros and cons to this decision. Renting out your space can be an excellent source of passive income, but property ownership and being a landlord also come with a lot of responsibility.
If this is something you’re seriously considering, it’s important that you know a few of the fundamental facts first. Here is a quick 101 guide to help you lean into further research and make an informed final decision.
Property Management and Maintenance
First of all, you’ll need to decide between self-management versus hiring a property management company to handle that for you. If you’re in Canada, then Del Condominium Rental property management companies in Downtown Toronto are a great option to look into.
You’ll also need to consider property maintenance. As the owner and landlord, home maintenance will still be entirely your responsibility, and you’ll have to take care of both the regular upkeep and any emergency repairs that need to take place.
When it comes to home maintenance, it would be a good idea to schedule regular inspections with your tenants so you can keep on top of things.
Understanding Legal Responsibilities
Even simply owning property entails a whole lot of legal jargon that might knock you off your feet. Renting that property out is a whole new level!
But fear not; there are plenty of professionals who will be able to assist you in both understanding and complying with the local, state, and federal laws that govern property rental.
You’ll need to think about things like lease agreements, tenant rights, the Fair Housing Act, and other variable laws and regulations depending on the type of property, area, etc. This is, fortunately, something you’ll only need to worry about in the initial stages of the process.
Setting the Right Rental Price
One of the key challenges to renting out your property is setting the right price. You’ll need to consider multiple factors, including what the local rental market is like, the size and condition of the property, how energy efficient the place is, the location, what amenities are nearby, etc.
You’ll want to set your rental price low enough to attract tenants, but high enough that your endeavour is still profitable and worth your while. To do so, you can work with a property management company or a real estate agent (or both) to help you determine a good price range, as well as plan in advance how rent increases will work.
Finding and Screening Tenants
Finally, the art of finding a good tenant. As frustrating as this may be, the tenants you choose to lease your property to can make or break this journey for you.
Having great renters will make things easy breezy, but tenants who don’t pay on time or damage your property can turn this dream into a nightmare.
Make sure you advertise your property on a few different channels (online, newspapers, etc.) and come up with an effective screening process. While you need to be ethical and comply with regulations, you are allowed to be picky about who you stays and who goes.
Jenny Kakoudakis likes to blog about interiors. She launched award-winning Seasons in Colour in 2014. When she is not chasing criminals out of the financial system (her day job), she gets creative by redecorating her own home.
Download her free bathroom renovation guide here.
