Owning a rental property is a great investment and can even help you pay off your mortgage faster, and the time to get involved in the market couldn’t be any better. With Calgary’s rental vacancy rate around 1 per cent, rental properties are in extremely high demand. Earlier this month, the Calgary city council voted earlier this month to eliminate the nearly $4,500 application fee for developing a rental suite on your own property, which makes it even more appealing.
If you have been thinking about purchasing a home as a rental property, or building a rental suite into your existing home, but you weren’t sure if you could afford it or how to get started, Mortgages by Candice is here to guide you.
How Can Your Calgary Mortgage Broker Help?
For many potential landlords, just the thought of saving enough for a down payment keeps them from getting in to the market, but today’s variety of mortgage products can make that much easier. Mortgages By Candice has personal experience in rental property ownership, which goes hand-in-hand with being a mortgage broker. We invite you to use our knowledge!
A Calgary mortgage broker can find a lender that allows the lowest possible down payment possible for a property. And another option for current landowners is to also take advantage of the equity in their home. Or consider a Purchase Plus Improvements Loan, which makes it easier to buy and turn a fixer-upper into a great rental property. Whichever path you choose, today’s low ratesmake becoming the owner of a rental property very appealing.
Finding the Right Tenant
After purchasing a rental property, it is very important to research the rules related to your new business so you can avoid costly mistakes and know how to respond if an issue arises. As a landlord you will need to follow rules regarding the types of questions you can ask potential tenants, the information you are allowed to keep, and when you can require a tenant to move. Each province and territory has its own laws, and you will need to become familiar with local ordinances and building codes as well.
As a landlord, you want someone who will care for your property, follow the rules and pay the rent on time. The more clearly you can express what makes your rental perfect, the better chance you will have of finding the tenant you want. Remember, different properties attract different tenants. A small home will in a residential neighborhood have a different market than a luxurious penthouse condo.
- Research the prices of comparable rentals in your area.
- Describe all the ways your property is better than others nearby.
- Advertise with a sign; list it in the local newspaper, and in publications specifically geared toward rental housing.
- If you are interested in student tenants, campus housing offices often provide free listing services.
- Inform family members and friends that you are looking for a tenant.
- Advertise on websites specializing in rental listings.
Take the time and effort to carefully consider your prospective tenants:
- Check their residence history. Talk to previous landlords.
- Obtain a credit bureau report.
- Check references.
- Confirm employment.
- Have your tenant sign a written lease detailing terms of the rental agreement.
- Collect a deposit. Be sure you both understand the rules regarding its return.
- Conduct an inspection with your tenant to document the condition of the rental before move-in. Have your tenant sign the inspection form.
- Advise your tenant to purchase renter’s insurance for their property.
- Provide your tenant with copies of local parking, noise, and garbage bylaws.
As a landlord, it is your responsibility to make sure your rental complies with all health, housing, fire safety, building codes and local zoning standards. Of course, no matter how perfect the property, the tenant, or the landlord, difficulties might still arise. The Canada Housing and Mortgage Corporation offers a detailed fact sheet with guidelines for Alberta landlords.
If you need to deal with a problem tenant, a simple written request might get results, but if it doesn’t, you might need to make a complaint with a mediation service or rent authority. If your tenant fails to pay the rent, act quickly with a notice to move that includes the amount owed, the date the tenant must move out, and a statement that the tenant has the right to disagree with the notice. If your tenant does not comply, contact the local rent authority for assistance.
- Always put warnings, notices, and complaints in writing.
- Maintain detailed records.
- Call the police if necessary.
- Go through proper legal channels to resolve disputes.
If you ever dreamed of becoming a landlord, but thought it was beyond your reach, it’s time to think again. Mortgage rates are low, and local fees are being eliminated. And, your Calgary mortgage broker is here to help you select the right products to make purchasing a rental property more affordable. Contact Mortgages by Candice to get started today.