Purchasing a home that will be leased out to tenants has the potential to be a positive financial move. However, understanding exactly what you’re getting yourself into before making the decision to become a landlord is important. As a Mississauga real estate agent for more than 25 years, I have helped countless individuals and families invest in real estate. Here is some advice.
Landlords are never off the clock. Emergencies can occur at a rental property at any time of the day or night. Landlords need to be available to address these issues at a moment’s notice. Most of your time will be spent passively collecting rent checks and addressing minor maintenance issues, but you could be contacted in the middle of the night for an urgent plumbing leak.
Be prepared for the worst. Being a landlord isn’t a bad thing, but anyone who feels inclined to purchase a rental property should be prepared for all of the possibilities related to being a landlord. Bad tenants could cause damage to the property. Issues with the building itself may be costly if an inspection is not done before the purchase is complete. Make sure that you are financially stable enough to deal with any surprises that may come your way.
There are laws that landlords are required to adhere to when renting out a property. Make a point to review Ontario housing laws before you decide to become a landlord. Laws related to health codes, security deposits, safety of tenants and discrimination could spell trouble for you if you do not read and understand these laws prior to issuing a lease to a tenant. The lease that you give to a tenant must comply with these laws. Failure to comply with housing laws may mean that the lease is not legally binding.
Being a landlord has its benefits. Don’t let the potential negatives of being a landlord discourage you from investing in rental properties. Landlords enjoy the benefits of being their own boss. Financial benefits can be immediately realized when tenants pay rent each month, and there is long-term value in the property itself. Many landlords find that they build strong, positive relationships with their tenants.
If you’re searching for an income property to lease out to tenants, as a Mississauga real estate agent with much experience, I know I can assist you in finding the right income property for you. Contact me at 905-502-1500 or www.mcdadi.com for a stress-free real estate transaction.