Investing in a rental property, for beginners and experienced parties, is a move to be made carefully and with research.

Rentals have a strong demand all over Toronto, especially in regions like Etobicoke where there is a strong population of students, young professionals, and families looking for an affordable place to live.

While setting up the right rental property can be an amazing way to create passive income, selecting the wrong property or not vetting your tenant can reduce a great investment into a headache and a problem with a time-consuming fix.

Before jumping in, here is everything you need to know about buying a rental property in Etobicoke.

Can You Cover Repairs And Landlord Requirements?

As a landlord, you are required to cover certain repairs and services to the property. If something as simple as a refrigerator breakdown is a not a big cost but a leafy roof could put you in financial peril, you may want to save a nice chunk of change before buying a rental.

What Are Typical Rental Rates In The Area?

Look at what the rental rates are in the area for comparable properties. They should be sufficient for you to turn a profit based on what you’re covering on the mortgage. In this era of high interest rates and inflation, you do not want to set yourself up to operate at a loss.

What Is The Demand For Your Specific Type Of Property?

Every property has a natural target audience. A small 1-bedroom apartment, for example, shouldn’t be advertised as family-friendly. This type of unit is more inclined for a single person. Before settling on a property, investigate what the demand is first, whether it’s a property more in line with students, professionals, or families.

Have You Looked At The Landlord And Tenant Board Rules?

If this is your first time becoming a landlord, read the Ontario Landlord and Tenant Board rules. They will guide everything from landlord-tenant relations to when you can enter the unit and how much rental increases are permitted to be every year.

Will You Hire A Property Manager Or Handle It Yourself?

Running a rental is not all profit. It takes time, effort, and there are responsibilities to uphold. If you don’t want to be hands-on, you will have to hire a property manager or caretaker of some kind.

Do You Know How To Vet A Renter?

The renter you select to live at your Etobicoke property is a major decision. You want someone trustworthy, capable of paying you every month on time, and who is not going to cause damage or inconvenience to your neighbours. The act of vetting a renter can take a while and can be a major challenge for new landlords as they learn what to look for or what they’re searching for.

Have You Hired A Lawyer To Consult With?

For most landlords, a lawyer or paralegal that specializes in tenancy law is essential. They can help draft up contracts and advise on landlord-tenant issues as they come up. Any and all questions you have can be answered by an experienced lawyer in the field, and if you ever need to be represented in court, you already know who to rely on for representation.

Thinking about buying a home to live in instead of renting out? The posts below will help:

Invest, Build Equity, And Be Smart

There are overwhelmingly positive experiences between most landlords and tenants, despite the risks. If you’re considering investing in a rental property, there is no better neighborhood than South Etobicoke.

Renters are always searching the area for housing, most of whom are honest and responsible, simply looking for a place to call home while they go to school or start their career.

If you are looking for investment properties in Etobicoke or want to buy a rental in Etobicoke, speak with the team at Adrian + Andrea. We’re happy to sit with you, run by you the available properties in the community, and help you find the right rental for your long-term needs.

Want to know more about how to invest successfully in Etobicoke? Give us a call at (416) 319-6893 or email info@adrianandrea.com today