Other than perhaps dealing with a few varying municipal bylaws and property tax codes, the knowledge and resources required to become a landlord in Ontario are fairly consistent.
Whether you’re looking to establish a rental income property in Niagara, Haldimand, Hamilton or beyond, here are some things you should know about becoming a landlord.
BUY A QUALITY PROPERTY
Duh right?
When you’re looking to purchase a new rental property, you’re not only concerned with the usual factors of making a smart home buy (i.e. house size, age of roof, heating and cooling systems etc.,) you’re also concerned about finding a home that would be suitable as a rental property (i.e. what type of tenants are most likely for the neighbourhood it’s in? Will the mortgage and property taxes allow for a good ROI?)
In other words, you’re not just looking for the nicest home that fits your budget, you’re also looking for the right home that will help you maximize your income and chances of becoming a successful landlord.
If you’re just starting your journey to becoming a landlord in Ontario, it’s best to start with a Google search of “rental properties for sale” in your area.
Places like Royal LePage and Realtor.ca often offer specific categories for multi-family homes, duplexes and triplexes for sale that are well suited as investment properties.
FAMILIARIZE YOURSELF WITH RULES AND REGULATIONS
As we mentioned above, different municipalities may have different codes and bylaws that impact buying, owning and renting an income property so becoming a landlord in Niagara may not be the same as in Hamilton and so on.
Some rule differences may be significant such as the property standard bylaws in St. Catharines while others are more typical and relatively minor like the residential bylaws of Niagara Falls but before you make the leap of purchasing a rental income property it’s best to do your homework and thoroughly research the specific rules that apply to the city you’re setting up in.
FIND THE RIGHT TENANTS
As a landlord, one of the best things you can do for yourself is to put in the time to find the best tenants possible.
Your level of stress decreases as the quality and reliability of your tenant increases. Renting to the wrong people could be the difference between success and not seeing a return on your investment.
“Tenant screening is the most important process a landlord needs to master when managing passive income properties.” – Rentals.ca
Canadian Real Estate Magazine offers these 10 tips for a successful tenant background check.
GET LANDLORD INSURANCE
Anyone who owns and rents property in Ontario needs landlord insurance.
It not only helps protect the building itself (property insurance) and the property owner (liability insurance) it can also come into play with respect to loss of rental income insurance.
Looking for more? You can learn more about Ontario landlord insurance and get a rental property insurance quote.
KEEP YOUR RENTAL PROPERTY SAFE
Not only will securing your rental property help your chances of finding affordable landlord insurance, but it will also show you care about the security of your tenants so you’ll be able to attract better renters.
- Maintain the property inside and out
- Install security cameras
- Secure doors and windows
These are just some of the ways a landlord helps keep his or her rental property safe.
Most of all, if you treat your role as landlord like the business it is and treat your tenants and property well with proactive hands-on attention, you have a great chance of becoming a successful landlord in Ontario.
Erie Mutual Insurance proudly serves the small business insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
