Whether you’re adding a secondary suite to your home, purchasing a dedicated rental property such as a condo, or exploring other routes or property management, you’ll want to familiarize yourself with the ins and outs of being a landlord in Toronto. We’ve put together a list of dos and don’ts to help you get started.
Garden suites (also known as laneway homes) are a newcomer to Toronto’s rental landscape. To learn more about this unique, high-potential type of income property, click here to read our blog post on the topic.
Do Ensure Your Property is Legal
While getting your income property set up is exciting, it’s essential to avoid cutting corners. Operating a rental property that isn’t up to code could land you in big trouble – legally, financially, or from a safety perspective.
Secondary suites and rental properties are governed by the city and province. Meaning there are two layers of rules and regulations to adhere to. Before you make your property available to tenants, you’ll need to ensure it’s up to code.
If you’re making modifications to the property in order to create new or additional suites, you’ll also need to apply for and obtain the necessary permits. You’re also required to have it inspected by the city during construction – on more than one occasion.
Don’t Sell Yourself Short
Right now, there are not many better places to own an income property than in Toronto. With a consistently rising demand for rental housing, average market rents continue to reach new heights almost monthly. With that in mind, there are countless opportunities to maximize the income stream earned from your property.
Instead of guessing what someone may be willing to pay to rent your place, research local rental rates and nearby properties. With this info in your back pocket, you’ll ensure aren’t leaving money on the table.
Looking for more tips about real estate investment? You might like these blog posts.
- What Canada’s Home Flipping Tax Means For Sellers
- The Best Toronto Neighbourhoods to Invest in
- 5 Things to Know Before You Buy in Downtown Toronto
Do Screen Your Tenants Carefully
The key to a smooth, low-stress, and ultimately profitable income property is finding the right tenant. While you’ll still have certain landlord duties, hosting a responsible and reliable tenant can make your investment feel automated.
Once tenant applications begin rolling in, don’t skip out on doing your due diligence. Be sure to request proof of income, employment, and references from past or present landlords. Yes, this will involve some work, but trust us – it’s well worth the effort.
Don’t Break the Rules
This is a big one. As a landlord, you have a healthy list of rights. However, just because it’s your property doesn’t mean there aren’t rules you’ll need to follow.
Key rules include not entering the unit without 24 hours’ notice, not enforcing illegal rent increases, providing adequate heat, and other tenant protections. Once your unit or property is up and running, take the time to review the Ontario Residential Tenancies Act (RTA). This resource is a handy go-to guide for information on managing your property and tenants.
Want to know more about high-potential income properties in Toronto? Explore these other posts from our blog.
- What to do if Your Pre-Construction Condo is Delayed
- Our Guide to Interim Occupancy in Toronto
- A Condo Buying Guide For Millenials
Do Take Good Care of Your Property
Your income property is an extremely valuable investment asset. With this in mind, you’ll want to take good care of it. Not only can keeping the property in top condition maximize its long-term value, but it will also be helpful in attracting and retaining quality tenants.
Minimizing routine maintenance begins with fine-tuning your property early on. Ideally, you’ll want to make any necessary repairs or major upgrades before finding tenants. Once the property is up and running, completing small maintenance tasks or minor repairs will be a breeze.
Don’t Be Afraid to Ask For Advice
Being a first-time landlord can feel intimidating but it doesn’t need to be. If you need help or feel lost, don’t be afraid to ask an expert.
As veteran real estate agents and investors ourselves, Silverburtnick & Associates can provide you with invaluable guidance to begin your journey as a landlord. Whether you need help sourcing and vetting tenants, adding income units to your property, or maximizing your returns, we’re your one-stop shop for helpful advice.
Looking to purchase or build a profitable income property? As seasoned experts in Toronto real estate, our team would be happy to assist you. Click here to get in touch.
