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Can you be a landlord in Toronto?

1000 664 Nisha Muire

Can you be a landlord? The simple answer is “yes,” the true answer is a lot more complicated. However, the path to profit can certainly be achieved if you play your cards right and make a sound rental investment.
 
Being a landlord is one of the surest ways to build equity for yourself and your future. After all, real estate will always appreciate over the long term – even if there are downturns within your time-frame, historically, over a ten year time period property values tend to double. However, being a landlord is not for the faint of heart or for those who want a passive investment.
 
The truth is that being a landlord is an active investment. Whether you have only one rental unit or ten units to oversee, you have to be prepared that when the phone rings, at the other end will be a tenant complaining of a problem that needs fixing. Some people realize quickly that being a landlord is more work than they anticipated and so cut-short their realty dreams. However, proper planning and a realistic view of what is entailed will help you succeed. If you know that you are not handy with a hammer, enlist the aid of someone who is. Get yourself a shortlist of affordable and reliable contractors whom you can call to help you on short notice. Or, you can always hire a property manager to oversee your property and to report any real issues to you. Hiring a property manager only really makes sense if you have enough rental units and profit to make the expense worth your while.
 
The next thing to remember is that the numbers have to work in your favor. If the rent you charge doesn’t cover your carrying costs, your maintenance costs and provide you with a small profit at the end, then the investment is not sound. Whatever rental you buy make sure that the rent will cover your mortgage, insurance, taxes, maintenance and leave you with a little bit to save at the end of the month. If you don’t have that savings margin then any unforeseen circumstances will result in a loss for you that month.
 
So, to recap this quick overview, yes, you can be a landlord! Just remember to following these very simple guildelines:
 
– Crunch the numbers! Make sure the rent you receive every month more than offsets the costs of running your rental property.
– Prepare mentally for an active investment.
– Make a shortlist of go-to contractors who can help with fixes/renovations as needed.
– Know the property laws in your province or state.
– Know your tax laws!

Author

Nisha Muire

All stories by: Nisha Muire