Landlord & Tenant – Dos and Don’ts
Being a landlord is not always that easy, but we are here to help! Below are some Dos and Don’ts that you may want to consider.
- Understand the RTA (Residential Tenancies Act)
- Do a good job in presenting a product that attracts the desired demographic (i.e. working professional, young couple vs. rooming house). Targeting the right tenant will save you from a lot of hassle in the future.
- Do your due diligence before committing. Remember that your tenants are living in your property, if anything needs to be fixed, being prompt will always work to your advantage.
- Protect yourself and raise the rent every year per minimum allowed by Landlord and Tenant Board of Ontario (2018 = 1.8%)
- Don’t charge a “security deposit” – it’s illegal under section 105 of the RTA (Security Deposit Limitation)
- Don’t settle! As mentioned before, take care of your tenants and your property.
- Don’t be cheap – go back to the point above, settling now = pain later.
- Don’t be mean – a good Tenant is peace of mind and therefore a good investment.
Learning Lessons (Personal & Client Related)
- Your Tenant is not your friend. Be nice, but not too nice. Remember that you are investing in your property and your tenant is the return.
- You are running a “business” – every business has expenses, if you ignore, your business will fail.
- We already said this: Don’t be mean – a good Tenant is peace of mind and therefore a good investment.
- Don’t be too nice – Tenants have power, but so do you!
- Remember to raise rents. If you haven’t raised your rent in years and then decide to sell your property, the cash flow won’t make sense to a new investor, making your property not as desirable.
- Turnover is good – rents go up quicker!
Hiring a Property Manager?
Now you got a tenant for your property, maybe two or three. This renting business is starting to become your full-time job and you are questioning if you should hire a Property Manager. Here is our advice, summarized in few key points.
- You’re too busy
- You don’t understand the RTA and don’t care to learn about it
- You can’t be bothered
- You own multiple investments outside of your primary residence (2+)
- You own only 1 investment property outside of your primary
- You can handle it
- You want to learn
- Your margins are too slim (PM fee = 7-12% of GROSS RENT on average)
Other Seminar Notes:
Now that you know our dos and don’ts, it’s time to get into this business and start making some good money. Let us guide you.