Being a landlord has its challenges, but covering one’s bases in the following ways is bound to provide you with quality tenants and rents.
Every professional real estate sales representative understands the importance of location, and so should every landlord. Personally, I have helped a number of landlords who decided to buy in what people (with no real estate training) said was an “up and coming” neighbourhood. Well guess what – it did not “come up” in the time frame these prospective landlords wanted it to be “up and coming” and they learned some really hard lessons.
As an investor, you need to know where you’re investing and what the demographics are in that neighbourhood. You also need to know whether there are universities, good schools, families, restaurants and other amenities.
There are many investors who have bought in depressed neighbourhoods. Why? Because the selling price of a property was really tempting, but then, unfortunately they ended up attracting a lot of renters who did not have the best incomes. Then the Landlord had ended up with problems trying to collect the monthly rent on time every month. They (the Landlord) end up wasting a lot of time chasing the tenants for the monthly rent. Remember in real estate the most important thing is Location! Location! Location! And, it is the most important things for investing in “rental properties”. Make sure you know where you’re investing and what the demographics in that neighbourhood are.
If investing in a house rather than a condominium, ensure big ticket items like furnaces, wiring, roofs and windows are updated. Why? Because those are the things that can be very costly to repair. If at all possible, have those larger items updated before you rent the unit out. Why? If one of the “high ticket items” is going to fail, it’s always at an inopportune time like winter, and you’ll be left with an angry tenant.”
Beyond material concerns, Landlords invariably become arbiters in disputes between tenants, unfairly or not, and that managing personalities is a delicate art. There are many books out there that can give you insight into the four types of personalities…and I strongly urge anyone who is planning on investing in a rental unit to learn how to deal with each personality.
One of the best books to read is Positive Personality Profiles: D-I-S-C .
It features Personality Insights to Understand Yourself and Others!
Written by Dr. Robert A. Rohm –
You can purchase this book at Amazon – you’ll find the link below;
When a Landlord owns a house with, let’s say, four units, like a multiplex, it’s hard to get everybody to get along, and you are their first line of defense. So, it is vital to know the four different personalities so you can manage them, manage expectations and handle the stress level. This is absolutely crucial because for an inexperienced landlord, the first call they get because of an issue with a tenant or an issue with a clogged toilet can make their already stressful life even more stressful. Always be prepared for anything, whether issues with tenants or the property itself.”
Additionally, tenants need to be thoroughly screened, and a prospective Landlord hire a Realtor. The Realtor will run the credit reports and confirm that bank statements are real. Even calling an employer to confirm the information provided by potential tenants isn’t beyond the realm of the reasonable. As well, they will call the prospective tenants’ previous landlords to find out what kind of people they are.
I have learned over my 11 years in the real estate industry, that units with dishwashers, washers and dryers are not only highly sought after, but they attract good-quality renters.
I have also learned that prospective tenants flock to buildings with great amenities like gyms, but make sure that the maintenance fees are in line – however, sometimes when the building has a lot of amenities, especially swimming pools the maintenance fees are much higher.
Over the last couple of years, I have noticed that people in their and 20’s and 30’s, are most interested in the fitness amenities. Older tenants seem to prefer the security of a concierge. But, no matter whether people are young or older, they all seem to care about the kind of neighbours they have in a building and whether or not there’s transit nearby.”
One of the most important things for a Landlord to do is to look after their renters and know rental laws.”
Call the following numbers:
Toll Free: 1-888-332-3234
Toronto area: 416-645-8080
TTY: Bell Relay Service at 1-800-268-9242
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I have personally helped numerous landlords find suitable tenants for their rental units and have had great success in finding the right tenants for my clients.
If you are considering purchasing a rental investment property, I would be happy to help you find, not only the right property, but also the right tenants.
Please feel free to contact me through email: firstname.lastname@example.org or my cell phone: 647-449-6642.