TIPS & TRICKS FOR YOUR FIRST INVESTMENT PROPERTY

Purchasing your first investment property can be a daunting adventure, from finding your tenant to deciding whether you are going to take on the property management of your property yourself. It’s important that you take the time to understand the process and what will work best with your business strategy, but don’t be scared to ask for a little help!

Finding your Perfect Tenant

The lease process is simple but can have major consequences if not done correctly. When choosing to list your unit for rent, you need to clean the unit and take photos of all the main rooms and the outside of the unit. Make sure all photos are landscape so they show better online. Once this is done, you want to establish what the details of the lease are going to be. This includes what utilities are included, the start date, the price, and what the landlord and tenant responsibilities are. After these details are laid out, you can post your unit on Facebook Marketplace and Kijiji, as well as other student rental sites if you’re looking for that demographic. You can also hire a Realtor to do all of this for you and get the added benefit of your unit being listed on the MLS and Realtor.ca!

Once you start receiving applications you need to properly analyze potential tenants to find the right fit for your unit. You will always want to obtain a full credit report— neighbourly is a great application for this—as well as proof of income and employment like paystubs or a letter of employment indicating salary. You will also want to follow up with the references your applicant provides to get a better feel for who they are and how respectful of your unit they will be.

Happy Tenant Means Happy Landlord

First and foremost, it’s important to be open and communicative with your tenant no matter what. Be sure to respond to them promptly and respectfully because the happier they are with you as their landlord, the less chance there will be for issues to arise.

The main reason why you will be contacted will be for maintenance issues that may arise. If you’re not a handy person yourself, consider vetting a local handyman that’s trusted in the area to be your right hand mand. Hiring a handyman on a per incident basis will save you the monthly fee a property manager will charge you because it is very rare that a tenant will have a maintenance issue every month.

Preventing Tenant Lockouts

It’s 11 o’clock at night and you’re heading to bed, when your phone lights up with your tenant’s name flashing on the home screen. They’re locked out and needs you to come open the door.

This is a common occurrence that could have been prevented as soon as you received the keys to your new property! One of the simplest ways to prevent is to change the door locks to keypad entry to your investment properties. Not only does this prevent from late-night lockout calls, but it also means that when you changeover tenants, all you have to do is change the keypad code rather than paying a locksmith to rekey the lock.

Landscaping

Snow and lawn maintenance should always be a consideration when taking over a new investment property. It can either be an expense on your profit and loss statement, or you can incentivize your tenant to take over the responsibility. Consider purchasing the proper equipment for the tenant to take over this duty so that they will be encouraged to maintain the curb appeal of your property while they are living in it.

If your investment is a multi-residential property, take the time to know your tenants and inquire if any of them would be interested in taking over the lawn maintenance and snow removal for a slight rent discount.

Wanna chat further? Email us at homesplus@westsidepartners.ca