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Wanting to enter the landlord game

J

JayBee

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I plan on renting out my unit and would like to know what I need to look out for as a landlord.

I'll be researching the legalities but I'd like to hear from the landlords of the board. Any insight is appreciated.

Thanks,
 
JayBee said:
I plan on renting out my unit and would like to know what I need to look out for as a landlord.

I'll be researching the legalities but I'd like to hear from the landlords of the board. Any insight is appreciated.

Thanks,
Click to expand...

We're going to be doing a show on this on Wednesday March 24th at 8:30p (Rogers TV). If you have questions email us at insidetorealestate@rogerstv.com

Cheers
 
I have helped a few invenstors in the past with renting out their units. The best things to do is get knowledgeable on how to read credit reports and of course have a list of questions to ask the potential renter and their referrences. Don't forget to ask for a job letter.

Besides that you will need to have a little bit of luck and hope you get the right renter.

best of luck
 
Things to think about when getting into the game

It was like this for 3 weeks:
DSCN1226.JPG


You think this could cover up for the lost rent?

marijuana+plants.jpg


How nice of them, they thought you might need some of this:

041.JPG



For more pics click here

For some other blog posts here and here

If anyone else has any pictures, please post them perhaps we'll put them on the show. It should be a good one

Cheers
 
1. Have tenants provide a credit report
2. Get T4's, paystubs, job letter
3. Verify previous addresses by cross referencing owner on land registry
4. follow your own gut through questioning
Email me and I'll give you my questions that I use to spur discussion Brian(at)realexpertsinc(dot)com.

Chant in your head smiling, curious, well mannered, let them talk
 
Also if you are renting out your condo, make sure you give the tenants a copy of the rules and bylaws and make sure they read it - we have people lie and say they don't have a pet, then they move in with a two dogs the size of donkeys and they get kicked out, get registration forms for the tenant, and rules for booking the service elevator.
But most important
You want to make sure that the tenant gets home insurance, even if you buy it yourself. Demand proof that your tenant has zero-payable on the corporation's insurance deductible. Make sure you know your corporation's insurance deductibles, particularly for floods. For example, if your tenant causes a flood and the corporation deductible on floods is $5,000, you don't want to get stuck for paying that cash. Make sure the tenant's policy covers that, or you have to pay it.
 
urbandreamer said:
Well, other than the fact I'm learning which landlords in the city to avoid...this surely is evidence that the condo market is due for a massive correction. These newbie landlords are gonna be in for a real treat.:D
Click to expand...

I agree... rent prices will drop. There are a whole lot of options nowadays. I remember asking a sales agent at a sales office "Who's going to live in all these new condos?". He replied..."ummm...uhhhh...mmm renters". LOL.
 
every time I have to clean up after a tenant that has moved out, I consider getting out of the landlord game. It is a major hassle going after people for damages once they have moved out and often not worth it for a few hundred dollars. Property management companies really only make sense financially for larger multi-unit properties. If you get a property manager for a triplex, their cut is too high to make economic sense.

I don't think rents will drop too much in T.O. because they have remained relatively flat over the past 8 years. Anecdotally, The rents I have been able to charge have stayed flat. I think there are also reports confirming this across the entire market in Toronto. Renting is cheaper than owning, and either purchase prices will drop a lot and/or rents will increase to achieve an equilibrium.
 
Renting out units is easy and most people are mostly reasonable individuals. If you are dealing with one unit of course the stakes are higher because all your eggs are in one basket and the relationship between you and your tenant becomes far more important and personal.

I recall a recent thread where a forumer was complaining about his friend's landlord. I pointed out that people tend to surround themselves with like minded individuals. The tips about credit scores and job proof and such are great but I frankly can not say that they have had much influence or relevence in my experience. This might sound funny but the most important thing to know about finding a good renter is what are you like? What you are like is just as important as what your tenant is like. What can you put up with? How well do you communicate?

As a tip in my experience there is no correlation between quality tenants and profession or income level. Why I say this is make sure to not be impressed by a persons outward status, this is totally irrelevent. You are looking for qualties in an individual's character, A doctor in a suit driving a BMW does not make a better tenant than an average joe making a quarter of the salary.
 
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