Are You Ready to Become a Landlord?
Think you're ready to buy a home and rent it out? Really? Are you sure? Becoming a landlord isn't as simple as you might think. Owning and renting out properties can be a money making venture if you purchase the right Chatham-Kent property, and you do your research. So what does it take to be a landlord and what do you need to know? Check out these points about being a landlord.
On-going Maintenance
When you're looking at the sticker price of a home in Chatham-Kent, remember that being a landlord involves a number of additional fees. I'm not just talking about lawyers fees, and land transfer taxes, I'm talking about maintenance. Most tenants will want a home to be professionally cleaned and re-painted prior to move in. Some will even ask for new carpets and other upgrades. What does this mean? It means you'll need to redo the property more frequently than you might if you lived there yourself. As well, when something breaks, you must fix it immediately. Forcing a tenant to go a summer without air conditioning or other amenities might leave you without a rental income. When purchasing a Chatham-Kent investment property, always think about the added costs of maintenance.
Consider the time your home may sit empty!
Just because you become a landlord does not mean that you will be instantly making money. It is important to consider the times that your unit may be unoccupied. Normally, the first year of owning a rental property is a loss, so it's important to consider what you will have to spend when your property is between tenants. There are times when your rental will be full and in demand, but this is not always a guarantee depending on the housing market, and the level of care your previous tenants gave to the property.
Be a Good Neighbour
When converting a property to a rental unit, it's important to check with your Chatham-Kent realtor and the municipality to learn about bylaws and rules related to rentals. In some regions, neighbourhoods ban student rentals from being formed, or they discourage multi-family dwellings. In others, the locals simply aren't welcoming to renting neighbours and will do everything they can to drive your tenants away. Research the neighbourhood, and the city policies so you can avoid unwanted speed bumps on your way to becoming a successful landlord.
Your Availability
Becoming a landlord means that you must almost always be available in case something goes wrong. If you go away on vacation, you will have to consider who will be left in charge if something happens, as well as whether you will hire a property manager or do fix-ups yourself. Just because you're at the cottage, doesn't mean you can neglect a tenant with a leaky roof, or a dead appliance. If you plan to become a landlord, you must be willing to accept the added responsibility, or find someone reliable who can fill the role.
Selecting Tenants
Remember, this is your investment property. You purchased this home in Chatham-Kent for a reason, which likely does not include party animals damaging walls or windows, or people bringing a walking zoo into your living room. Be selective when signing on with a tenant, without driving away all possible renters. You need to find a healthy balance, but most importantly, find someone who will pay their rent on time, and will show pride in the property.
Becoming a landlord is a 24 hours a day, 7 days a week job. At times, it may cause you more headaches then it produces cash; however, if you follow these facts, you with have a sense of security and background knowledge on what you should be prepared for and thus a better understanding of how to generate a profit.
For more information or questions about becoming a landlord, Contact Me, Patrick Pinsonneault at,