Most beginner landlords come in with the idea that once they have real estate to rent out, they’ll always come up cash-positive. But as property management companies Toronto will tell you, there is much more to being a landlord than just buying property and collecting rent. Many people don’t realize that the business of renting out condos and apartments come with a lot of risks. The Association of Condominium Managers Of Ontario is aware of all the pitfalls of property rental.
The best property management companies Toronto share some tips on how to be a successful landlord:
a) Accept the fact that renting out condos and apartments involve hard work and maintenance calls that might come at odd hours. If you really want to be a landlord, be ready for the hard work or ask a property manager for help.
b) Find the ideal property. The ideal property may not always be the lowest priced, but one which shows promise of being easy to rent out. The most telling characteristic is location and the type of community the property is located on. For people who want to rent out property without the help of Toronto condo property management, the best options are properties which don’t require much maintenance. And of course it should be something you can afford with a bit left over for contingencies.
c) Check the projected cash flow, considering that a certain percentage of expected income needs to cover unexpected expenses and unpaid rent.
d) Master the The Landlord and Tenant Act, and the Residential Tenancies Act and use the law to your advantage. Issue notices for unpaid rent the day after due date and don’t accept excuses.
e) Review tax laws to take advantage of all tax deductions you can legally claim
f) Periodically review your property’s performance to determine whether the investment remains cash-positive. Whenever the property crosses over to being cash-negative, study the trend. If projections say it will remain cash negative for a considerable length of time, consider cutting your losses and selling your property.
The best Toronto condo property management company will tell you that renting out property is a business. It is only worth the effort while you are making money. Otherwise you are just throwing money away.