As a Toronto real estate agent, I work with many clients looking to purchase an investment property. An investment property is a great way to build wealth and generate income; however, you also need to know a thing or two about being a Landlord! In today’s blog, we are going to give you some tips on being a successful Landlord. 

Tips on Being a Successful Landlord

If you purchase an investment property and become a Landlord, you’ll need to consider hiring a property manager or taking on the responsibility of a Landlord. Consider the following tips on being the most successful, effective Landlord you can be:

1. Understand Your Province’s Residential Tenancy Act

Take the time to be informed about the rules in your province regarding the Residential Tenancy Act. Understand how to terminate a tenancy, clauses that can be included in a lease and what deposits can be charged. What are the reasons a Landlord can end the tenancy? If a tenant has a pet, can you evict them? If you are interested in reading up, check out this guide on the Ontario Residential Tenancy Act.

2. Join a Landlords’ Group

Join a group on Facebook or through the Ontario Landlord’s Association. Arm yourself with as much education and resources as you can. Get advice and access to services like tenant credit checks. 

3. Ensure Property is Up to Legal Standards

As a Landlord, you are responsible for ensuring that your property meets the legal standards. For example, you need to have the legal number of smoke and carbon monoxide detectors. Ensure your building or the building the unit is in has escape routes and legal electrical plugs. 

4. Get the Right Tenant

Some Landlords and investment property owners choose to find a tenant on their own, without a realtor’s help. While this is an option, you need to ensure you are properly screening your potential tenants. Request a credit check, employment letter, pay stub, previous Landlord reference, and character references and check their social media. Take the time to follow up with these references and don’t just take their word for it. 

5. Work With a Realtor

While some Landlords opt to find their own tenants, many choose to use a Toronto Real Estate Agent. Using a realtor will cost some money, however, it gives the owner confidence in the selected tenant. A realtor will take the time to price your property, make sure it looks nice, market it and screen potential tenants. 

6. Don’t Overcharge Your Tenants

The rental market in Toronto has increased by about 20% over the last couple of years. If you find a good tenant who checks all of the boxes and ready to offer asking, consider taking a better profile over an extra $50 per month. If you get a good tenant at a reasonable price, you will have tenants who are happy and will likely treat the home with more respect and stay longer! 

7. Contact Your Insurance Company

If you are a Landlord renting out part of your house, call your insurance company and make them aware of this. Most insurance plans cover a single-family household, without notifying them, that any incidents that may occur in the rental unit run the risk of no coverage. You should also ensure your tenants show proof of contents insurance. 

8. Deal Repairs in a Reasonable Time Frame

Coming home to no hot water or a leaky faucet can be very annoying, especially if it’s not your responsibility. Show your tenants respect and take care of unit issues in a timely manner. Landlords are responsible for keeping the unit in good standing and the most successful Landlords take care of issues within 24 hours.  

9. Give Tenants Privacy and Respect

While it is natural to feel like this is your property, while a tenant is in good standing, it is their space. You must give your tenants the privacy they deserve and proper notice if you need to enter the unit. Provide 24-hour notice and the reason for entry.

10. Check In With Tenants

Ensure you or your real estate agent check in with your clients after they move in. After about a month, confirm if your tenants have any questions and see how they like the unit. They will appreciate this and respect you more as a Landlord. 

If you or someone you know is looking for more information on the rental process, feel free to reach out to one of our Toronto real estate agents.