2 minute read
There are so many reasons you might be considering renting out your home. Many people have braved the path before you and succeeded. It can be financially rewarding to rent out your home, however, there are a few things that you really need to consider before you take that step.
Accounting and Responsibility
First, you need to understand everything that is involved and if being a landlord is a responsibility you can handle. It would be a good idea to meet with your accountant to determine what your tax implications will be. While there some tax breaks, there may be some heavier tax payments for you as well.
You also need to really consider the responsibility of becoming a landlord. Things do not always run smoothly and there may be times that you have to drop everything to attend to repairs or emergencies. You may run into dealing with a difficult tenant. Even if they seem perfect to start, life happens and people change.
Decide on a Rent Amount
Your real estate agent can help with this. You need to determine what the market rent will be for your home before you put it on the market. You do not want to just take a guess. Doing some due diligence here will help make sure that renting out your home is financially worth it.
Know Your Rights
In Ontario, landlords are required to use the Ontario standard form lease that the government introduced in April 2018. It would be beneficial for you to read through the lease to make sure you know what will be required of you as a landlord. You should also get familiar with the Residential Tenancies Act. Be prepared to know what your rights are and what right your tenant will have when any situation arises.
Find a Great Tenant
This is the most important step to take. Do not just accept the first person that comes your way. Make sure you get the required paperwork from them and call the references. When you sign a lease you are giving renters a lot of rights to occupy your home so make sure they will take good care of it.
Considering Property Management Help
Finding a tenant and securing a lease can be overwhelming. The ongoing need to collect rent can also be very time-consuming. You can speak to your real estate agent about how you can get some help with the process. They will be able to educate you and likely introduce you to a property management company.