Owning a rental property in Ottawa can be a lucrative investment. However, becoming the owner of a rental property also involves a broad range of responsibilities. Those considering becoming a landlord should have a few resources in place before beginning this business venture.
It is a good idea to have experience with home ownership before purchasing real estate for investment purposes. The experience of buying and owning a home will prepare you for the larger undertaking of investing in and renting out real estate. If you do not own a home, at a minimum you should have the finances in place to become a landlord. Unexpected and costly repair expenses can arise, and the landlord is financially responsible for repair work.
Prospective landlords should try to understand what becoming a landlord means and then decide if they can comply with all the inherent responsibilities toward the property and their tenants. The responsibilities of a landlord also require some personal dedication. Hiring a building manager may help alleviate some of the maintenance tasks for a landlord, but it is not enough to support this full-time responsibility. Landlords should also have an understanding of permitted uses of the property.
Finding a property that meets your budget and other expectations is one of the most important steps for renting out real estate. Prospective landlords should carefully consider the real estate market in which they are investing. It often helps to engage the services of a real estate lawyer with experience in the Ottawa rental market. A lawyer will also be able to assist prospective landlords with rental contracts as well as other legal considerations.
Source: hibusiness.ca, “Signs That You Can Handle Being Landlord“, John Colley Loum, July 20, 2017