“It’s tangible. It’s solid. It’s beautiful. It’s artistic … I just love real estate,” Donald Trump
Investing in a rental property can be an excellent moneymaker if you think like an expert. However, you don’t have to be Donald Trump to turn a rental property into a profit. By educating yourself and following these tips, you’ll find it easy to minimize the disadvantages of owning real estate. While you won’t be able to eliminate shortfalls completely, being informed and prepared can go a long way.
Set reasonable goals
All landlords want to make consistent profits, but be reasonable about your investment. Rental properties are a slow and steady game that will make you money over five to 10 years. By being patient and reasonable, you won’t be tempted to jack up rent prices and push out (or scare off) reliable tenants.
Inspect your property
Don’t be surprised by unexpected expenses. By paying for an inspection up front from a trusted professional, you could save yourself thousands in unseen issues.
Let someone else do the work
If you don’t have time, or don’t want to make the effort, why not work with a property management firm? Find a company that will run your property for a percentage of the rental income and then relax knowing professionals are taking care of your investment.
Learn the provincial tenancy laws inside and out. Make sure your leases are legal so if your tenant violates the terms you are protected. It is better to spend the time reading the rules now than end up in court learning the hard way.
Take the time to call references and run credit checks. Too many landlords rush through the application process to avoid rental vacancies. Having a quality tenant is worth more than filling an empty property quickly. Search your prospective tenant on Google, Facebook and drive by their current residence to check out the condition it is in. This will save you money in the long run.
Have professionals on call
Make friends with a contractor, plumber, lawyer and accountant. Having a network at your fingertips will save you time and will be essential in the long term. As well, put some money aside to deal with regular maintenance of your properties.
Make sure you and your tenants have the right kind of insurance. When learning the rules of being a landlord, ask an insurance professional whether you’re covered with a proper package.
Being a landlord can be a simple way to make money if you do it right. Any questions? Feel free to call me at anytime at 604.727.1500