1.Don’t Do It Alone
Make sure you receive professional advice to make sure you aren’t missing the little things that cost the most. Team up with an experienced person or property management team for your first couple of investments to save you stress, time, and money. Learn more about the kind of services a property management company can provide you here: https://performancepropertymanagement.ca/
2. Pay Off Your Debt First
If you have student loans, unpaid medical bills, or your kids will soon be attending college, purchasing a rental property may not be the right move for you at this time.
3. Keep Your Expectations Realistic
Like any investment, a rental property isn’t going to produce a large monthly paycheque for a while and picking the wrong property could be a catastrophic mistake. Consider working with an experienced partner on your first property or rent out your own home to test your landlord abilities.
4. Don’t Buy a Fixer-Upper
It is tempting to buy a property at a great price and flip into rental property, but if this is your first property that is a bad idea. Unless you have a contractor who does quality work on the cheap, you are likely to pay too much to renovate. Instead, look to buy a home that needs mostly minor repairs.
5. Understand the Residential Tenancies Act of Ontario (RTA)
When buying a second property, you become a landlord. You’ll have extra responsibilities and you must become acquainted with the Residential Tenancies Act of Ontario (RTA). While you should hire a property management company to deal with the day-to-day workings of the property, you’ll still need to understand and respect the RTA and updated legislation.