Because of the still fairly fragile state of the housing market, many people are looking to purchase a rental Windsor property for investment. There are so many excellent bargains right now, it’s no wonder that buying these distressed properties may be a good idea. Here are some good and bad reasons to consider such an investment.
Cash Flow: The rental price for your Windsor property may include the mortgage, property taxes, insurance and repairs.
Appreciation: If you plan on keeping the home for the long-term, then you have a better chance at watching the home increase in value over time.
Managing The Property: It’s tough being a landlord for a variety of reasons. Finding excellent tenets that pay their rent on time, respect your property and are considerate neighbors takes time. Remember, Canadian laws are stacked in favor of the tenant.
Repairs: Be prepared for telephone calls, often in the middle of the night, for emergency repairs. The costs of such repairs are often high, so you will need a healthy savings to pay for often expensive and sudden emergencies for your Windsor property.
No Renters: Would you be prepared for renters picking up and leaving in the middle of the night without notice? Could you handle mortgage payments if this happened until you were able to find other renters?
The Not So Ugly: What You Need To Know Before Renting:
1. Research The Rental Market: Ask real estate agents and property managers what the average rents are in the area you are considering.
2. Get Your Finances In Order: Make sure you get pre-approved for an investment loan.
3. Purchase Rental Home in Good Neighborhood: You will have a much better chance of finding good tenants if you buy a home in a decent neighborhood with good schools.
4. Know Landlord Rules: Be prepared to fully know, understand and practice the rental property laws that you must conform to. In Ontario, these are found under the Landlord and Tenancies Act and the Residential Tenancies Act.
5. Get Lots of Insurance: You will need liability insurance to protect yourself and your investment should anyone be hurt on your rental property.
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