Jan 03, 2018
Potential landlords can take steps to avoid real estate disputes
The choice to become a landlord involves a lot of careful considerations. While it can be a lucrative choice for people in different parts of Ontario, new landlords should look at local and provincial laws as well as their own situation before choosing to invest in rental properties. Proper preparation can help people to avoid real estate disputes when buying and renting a property.
The first thing all potential landlords in Ontario should do before investing in a rental property is to weigh the numbers. Those who will be purchasing by obtaining a mortgage should calculate interest and mortgage insurance and weigh the total cost against the rental yield and future valuation of the property. Other things that should be factored in include taxes, legal fees, maintenance and management costs.
Once a budget has been set and financials have been considered, a potential landlord should consider who they wish to rent to. The needs and desires of different target tenants can vary. For example, students may have lower expectations but will also move out regularly. Families may want to hang pictures or paint walls, but if they do so are more likely to stay long term. Understanding the expectations and needs of a tenant will help potential landlords avoid real estate disputes.
Knowing the laws and local market can help potential landlords make sound rental property investments. Certain professionals, such as real estate agents, can also help in this process. One of the most important people to speak to when purchasing a home or dealing with a real estate dispute is a lawyer. Finding a lawyer immediately when considering purchasing a property can help a buyer consider the right things and give them a resource should things turn sour.