One aspect of our business it helping our clients obtain proper rental rates and renters. There are a few steps individuals can take to establish renting out your property but its always best to leave it to the professionals.
a. Investigate the area prior to purchasing the property.
b. Establish an amount that you believe your unit can bring in, sometimes it is worth investing a few thousand dollars to get a higher rate and better renters. It is also important the unit is in tip top shape – so perform any maintenance or repairs prior to letting the renters see the unit.
c. Attract the best renters/leasers by placing your advertising dollars where you’ll get the biggest bang for your buck, services like viewit.ca or Kijiji are good but attract all types of renter (some good some bad). We recommend using a realtor.
d. Separate all funds from your personal funds, establish a rainy day fund because there will be a time when you need things don’t always go as planned. Creating a bank account for your rental helps keep track of all expenses – just in case the CRA decides to audit your financials.
e. Tenant application forms are almost as important as a tenant interview, make sure all applicants fill out a form and keep it on record for at least the one year.
f. Perform a credit check if possible on the individual(s), studies have shown those who have good credit will make their payments on time and without excuses.
g. Finally if you’re not living on the same property as your tenant then it is sometimes a good idea to hire a real estate management company to take care of plowing snow/cutting the grass and collecting the rent.