Toronto's Real Estate Team
Helping Real Estate Investors To Make Their Experience A Profitable One
Guide To Attracting The Best Tenants
Get Responsible, High Quality Tenants Who Will Pay On Time And Take Care Of Your Property
Getting the right tenant for your rental property is the single difference between a profitable income property and an expensive headache of bounced cheques, illegal activities and property damage.
This doesn’t mean that by choosing to become a landlord you are taking a huge risk. If you do your research into potential tenants properly, you’ll find that renting out your property can be a very rewarding experience. As your property appreciates in value, someone else is paying your mortgage for you!
We’ve compiled a comprehensive how-to guide on finding that perfect tenant so your income property endeavors are as smooth and profitable as possible. If you are considering being a landlord, read on!
AVOID TENANT PROBLEMS – FOLLOW THESE 12 TOP TIPS
12.) Avoid Asking For The Absolute Top Rent
I’ve found over the years that asking for top-of-the-market rent is asking for trouble. If you’re desperate to get that extra few dollars, you’ll often end up compromising about the quality of tenant you accept.
It’s better to ask for slightly less than max rent and get more rental applicants who you can screen to get the most qualified tenant.
SIX ASTOUNDING ADVERTISING & SHOWING MISTAKES BAD LANDLORDS MAKE
Now let’s talk about how easy it is to screw up the process of taking applications and screening tenants. This is one of the most important parts of being a landlord — being able to properly select tenants will determine a huge amount of your success and happiness as a landlord.
So let’s get onto the screw-ups!
AVOID THESE SIX COMMON RENT COLLECTION & EVICTION MISTAKES
There’s not a landlord who’s been in business for long who hasn’t had a tenant fail to pay on time — or at all. When it happens, the speed and consistency of the landlord’s response will statistically dictate their success.
There are really only two types of actions a landlord can pursue: chasing the tenant for payment or eviction. Errors and mistakes abound, so let’s talk about some of them.
TORONTO’S REAL ESTATE TEAM FIND-A-TENANT PROGRAM
We have two Find-A-Tenant Rental Packages available.
Of course, there’s never a guarantee… people lose their jobs, get separated or divorced or get transferred to other cities all the time during the term of their lease. However, checking out the tenant vigorously at the beginning will minimize the possibility of any future problems!
The Rental Fairness Act - What It Means For Landlords
As of the end of May 2017, The Rental Fairness Act (RFA) was passed into law as part of Ontario’s Fair Housing Plan. The two main elements of that Act are to eliminate the exemption to rent increase rules and requiring landlords to compensate tenants if they want to terminate a tenancy for their own use.
Here are some of the details…
Changes To The Prescribed Landlord-Tenant Forms
On this page, I’ve included copies of several of the most common forms that landlords may use.
If you need to use any of these forms, I would suggest that you check online with the Landlord and Tenant Board for the most up-to-date forms.
If you do not use the most up-to-date version, and you have to appear before the Board, they may throw out your tenant application.
Are You Contemplating Selling Your Toronto Rental Property?
Get The Best Capital Gains Tax Advice For Smart Investors
Scenario One – A Canadian Purchases A Property Strictly For Investment
The first scenario would be the simplest, where a condo or house investor buys a unit, never lives in it as their prime residence, and rents it out for their entire ownership period before they decide to sell their investment.
That's the most common situation. For the owner, the most important documents to collect and keep right from the beginning, is what it cost you to buy that property.
Scenario Two - Non-Resident Investors Who Sell Their Canadian Property
The next scenario to consider would be the situation where the investor never lived in the condo or house. In fact, they’re not Canadian residents. What differences come into play in this scenario when related to capital gains?
A non-resident must file a Section 216 Canadian tax return annually to declare the income from their investment property.
Scenario Three – A Canadian Resident Lives In The Property For A Period Of Years And Then Turns It Into An Investment Property
How does that capital gains tax get collected if the property is sold this year but the seller doesn’t have to file a tax return until the following calendar year?
There's an automatic 25% withholding tax that’s collected by your lawyer representing you on the sale. So, if a non-resident sells a property, one of the requirements by the seller’s lawyer handling the actual transaction is to withhold 25% of the entire transaction selling price.
Your Next Steps Going Forward…
- Collect all your purchase documents and ongoing expense & income receipts and have them ready to present to your lawyer and/or accountant
- If you lived in the rental property for a period of time, call us to get a ‘Move-Out Valuation’ done as of the date you started renting the suite. You can have us do this for you anytime and you don’t have to wait until you decide to sell. It’s better to have this in your hands and kept with your other ownership documentation.
- When you start to think about disposing of your rental property, call us to do a Room-By-Room Review where we’ll do a walk-through of your suite or house to make cosmetic-only suggestions as to what should be done to maximize your selling price.
- Hire us to sell your property with our ‘Breakthrough Marketing With A Guaranteed Difference’ marketing plan
- Send referrals… you’ll want your friends to have the same great real estate experience you’re having
Toronto’s Real Estate Team
Real estate sales representative @ RE/MAX Hallmark Realty Brokerage
Office | 416-465-7850
Mobile & Text | 647-962-1650
Email | Thomas@LivingInToronto.com
Web | www.LivingInToronto.com
Robert Gore and Associates – Robert & Mary Gore and Chris Makris
Call the office at 416-699-8070 or email Chris@Goreca.com
If you are going to sell your suite in the next 1 to 9 months, what you do right now can make a difference of thousands of dollars in your sale price, and there are some simple things you can do forthwith to make sure you get "Top-Dollar" when you do sell.
Here are 3 FREE services you may want to take advantage of right now
First, is our FREE "Pin-Point Price" Analysis, where I can take a closer in-person look at your condo and prepare a very specific price for your suite. This price will be much more precise than the general range that you can get automatically from the site - and we guarantee in writing to sell your condo at the "Pin-Point Price" or higher in less than 32-days.
Second, is our FREE "Room-By-Room Review", where I do a 20-minute walk-thru and make specific recommendations about which fix-ups or improvements you should (and should not) do to prepare your suite for sale. I will point out the lowest cost, highest return improvements you can make to help sell your condominium quickly and for more money.
Third, if you would like, I will include your condo in our "Silent Market" of condominiums that are not yet on the market. Because we generate so much buyer interest from our website, Facebook and Google advertising and other proactive marketing, we may be able to find a buyer for your condo without even putting it on the market… saving you both time and money.
These 3 services are FREE. The Room-By-Room Review takes about an 20 minutes, and we can arrange a time during the day or evening, whenever is most convenient for you.