Becoming a Landlord and Investing in Rental Properties

Posted by Gurpreet Ghatehora on Thursday, August 28th, 2014 at 10:29pm.

Most people can make being a landlord a very part-time gig. For the most part all you have to do is collect rent and deal with any home issues that may arise, such as a burst pipe or a clogged sink. All-in-all, however, these issues are few and far between. If all you have to worry about is getting rent payments then you can make being a landlord a viable side business – but making this work is wholly dependent on your tenants. Be sure to choose the right ones.
1. Get their info
Don’t take their word for it. Trustworthy renters will be up front about themselves, their family situation and their income. It is smart to collect their Social Insurance information so that you can check their reliability yourself. You should also be clear about your stance on pets in the home. Pets can cause significant damage to a rental property – from hard to control odours to physical damage – you just never know.
2. Interview multiple potential tenants
Don’t simply accept the first people to show interest. Although you may be inclined to jump at the first tenants to ease the burden of multiple mortgages, you want to ensure you choose tenants who will be a great fit for your rental property.
3. Draw up proper documents
Once you decide on tenants it’s important to make sure you have them sign a proper lease or rental agreement. This document will protect you and them, and set the expectations you have for your rental property, and how they are to treat it. This will also dictate how the tenants are expected to notify you if they plan to vacate the premises.
Becoming a landlord is a great way to make a profit in the real estate industry, without having too much overhead to deal with. It’s generally a low-risk method of gaining equity, increasing your assets and maybe even making a profit on the side – eventually.

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