I’m a first time landlord, what do I need to know?
We know the first time you do anything can be challenging, so we wanted to help you get going. In this weeks blog we would like to share some tips with any new landlords out there who have invested in some real estate and are ready to add it to the rental market for the first time.
Do your research
The first step as a landlord is getting a tenant. Sometimes the reason landlords find it challenging to get a tenant is because of how they compare to other landlords. Knowing what is available in the rental market space helps you to determine how much to charge for rent or other incentives that may make your property more appealing. In one of our previous blogs, we discussed the five most important factors for students when choosing a rental property. Look at some of these factors and research what other landlords do with these factors to make their property more appealing.
Know your provincial tenancy laws
If you are a new landlord, take the time to research your provincial tenancy laws. Understanding these laws helps you plan and will help you maintain a good relationship with your tenant and some of your neighbours. We’ve heard stories of landlord and tenant relationships that did not work out, but having a common understanding of these laws should help prevent or solve disagreements. If something does go wrong, and the landlord is liable, not knowing the laws is not a legal defence.
Insurance, insurance, insurance
Do you have insurance and do you have enough coverage? Make sure you understand your insurance policy and your coverage. Also, speak to your tenant about whether or not they have insurance. It may not be your responsibility, but having the conversation with them, does not hurt you.
The property management company and the building manager
If your property is a unit within a building, it helps to get to know the building managers and where applicable the property management company. Depending on the problem or situation, there may be instances where you need to work with the building manager and the property management company, so knowing who they are and how to get in touch with them can lead to a more harmonious tenancy for all parties involved.
Do an inspection of the property
Depending on how diligent your tenants is, they may or may not ask for an inspection. As a general rule of thumb, it’s a good idea to do an inspection at the beginning of each new tenancy in case there are any damages in the future and it will help you determine if your tenants are eligible to receive their entire damage deposit at the end of their tenancy. In one of our previous blogs, we discussed move-in inspections, please read it if you need more advice.
Clean the place thoroughly
Make sure the place is clean and there aren’t any lingering odours. Years ago when I was looking for an apartment, I did a tour of an apartment that had a filthy bathroom and the carpet had recently been cleaned and wasn’t dry yet so it smelled a little bit moldy. I immediately decided I was not going to be living there.
Inspect appliances
Before your tenant moves in, you want to do an inspection of all major appliances such as the stove, fridge, dishwasher etc. The last thing you want is for your tenant to have a bad experience in the first few days or weeks of their stay since this may steer your relationship in the wrong direction.
Pick reputable maintenance personnel
When something needs to be repaired, pick someone who has a good reputation and will solve the problem and not the symptom. In most cases, if something needs to be repaired, the landlord will need to hire someone. If this as a recurring problem and the tenant needs to keep scheduling time to be at the property to let the maintenance staff in, it can get frustrating. Especially if they are in school with a packed class schedule. In addition, you will save yourself money and time from rework.
Keep records
It helps to keep records of documents, especially if they are shared with the tenant. The two most important ones that come to mind are the lease agreement and inspection reports. Other records such as meter readings, utility bills and invoices for repairs can help you plan and budget for your annual expenses and how much to charge for rent each month.
