Renting out a property comes with many benefits, such as earning a recurring rental income, a multitude of tax benefits, and appreciation in property value.
Renting out a property in Windsor is a great idea! That said, you’ll need to have a plan in place in order to get yourself going in the right direction. You’ll also want to be as knowledgeable as possible about your potential responsibilities.
If you’re thinking of renting out your house in Windsor, ON, here’s everything you should know about.
1. Understand the Responsibilities that Come with Being a Landlord
You’ve probably heard it before – landlording isn’t for the fainthearted. To be a landlord, and an effective one for that matter, you’ll need to put in time and effort. Landlording goes beyond just collecting rent checks every month.
For instance, one key responsibility you’ll have is finding tenants to fill your vacancies. While putting “For Rent” signs might have worked back in the day, times have now changed. You’ll need to use a combination of both online and offline tactics to find a desirable tenant.
Another responsibility you’ll have is on rental maintenance. You’ll need to ensure your property is always up-to-code. So, this will require you to promptly respond to your tenant’s maintenance calls, as well as carry out regular inspections.
And the list of responsibilities goes on and on…
2. Ready your Home for Renters
Before advertising your Windsor rental property, you’ll need to get it rent-ready. The last thing you want is for the tenant to report a leaky faucet or a burnt out bulb just a few days after moving in.
Make sure you start of on the right foot with your tenant by ensuring everything is in tiptop shape.
Here are some things you should do:
- Check to see if all appliances are working as they should.
- Trim overgrown bushes and mow the grass.
- Check all lighting fixtures to ensure they are working well.
- Check plumbing fixtures to ensure there are no leaks.
- Give the home a thorough clean.
- Ensure all safety features are working as they should.
3. Create a Legally Binding Lease Agreement
Renting out a property comes with a set of risks. For example, there is risk of property damage, or a risk of non-payment of rent. And it’s in such situations where a lease agreement comes in.
A good lease can help cushion you against a myriad of negligent or careless actions that can result in financial damage.
An effective lease is one that contains all important terms, including details on rent, policy on pets, policy on property alterations, and on the length of the lease.
It may be in your best interest to simply hire a professional to help you draft your lease agreement. The professional can be a real estate agent, an attorney or an experienced property management company.
Not only will they ensure the lease is foolproof against potential issues, but they will ensure that it is legally binding.
4. Determine the Rent Amount
Your goal of renting out your Windsor rental property is likely to maximize on your ROI.
As such, it can be easy to set a high rental rate in the hopes of making more income. However, more often than not, this is a huge mistake!
Setting a high rental rate may only lead to prolonged vacancies – and vacancies cost money!
Therefore, it goes without saying that setting the right rent is key to running a successful rental investment business. The right rent amount is one that allows you to maximize on your ROI while ensuring your property is still attractive.
And just like we advised with the lease agreement, we recommend involving professionals to help you in this regard, as well. A good property management company will have worked with hundreds of owners like yourself. They will help you determine the best rental rate for maximum profits.
5. Get to Know the Landlord-Tenant Laws in Windsor, ON
As already mentioned, landlording comes with a slew of responsibilities, including collecting rent, responding to maintenance calls, and marketing the unit to prospects.
But one thing that many newbie landlords in Windsor often overlook is their legal responsibilities. All over Ontario, landlords are required to abide by the Residential Tenancies Act.
The act covers aspects such landlord entry, security deposit rules, fair housing, responsibility on repairs and maintenance and more.
And remember, ignorance of the law can never be a defense in a court of law.
So, to protect yourself, you should work with a property management company!
6. Market your Windsor Property
Once you have straightened everything out, create a rental ad and start the syndication process.
Make sure your rental ad stands out by doing the following:
- Take stunning photos of the home.
- Describe what makes the home appealing.
- Use catchy headlines.
Once you have a winning rental ad, start the distribution process. Use a combination of both online and offline platforms.
7. Screen Tenants as Thoroughly as Possible
Naturally, after a successfully marketing campaign, prospects will reach out to learn more. Make sure you have a tenant screening process in place to ensure you land the right tenant.
Your goal should be to find a tenant who pays rent on time, cares for the unit, and rents long-term. So, make sure your tenant selection process reflects all these requirements.
Only consider tenants who:
- Earn sufficient income.
- Have a good rental background.
- Have no eviction record.
- Are reliable and credit worthy.
- Have no relevant criminal background.
8. Hire a Property Management Company
Turning your Windsor residential home into a rental property isn’t a simple task. To ensure a smooth journey, hire a professional property management company – they are the most qualified and suited for the job. After all, managing rental properties is all they do, day in and day out.
Preferably, look for a property manager that offers a comprehensive suite of services. This way, they will help you in all management aspects – from rental marketing and screening to rental maintenance and financial reporting.
Property Hunters may be the right fit for you! Give us a call today to learn more.
Renting out a property has its perks. However, you can only become successful if you get everything right.
If you’re just starting out, hiring a property management company can be the best investment decision you’ll ever make!
Contact Property Hunters today to see how you can get started on your real estate investment journey.