Maintain your property
Ensuring you maintain your property in the best possible condition will make a big difference to the amount you can charge to tenants coming in. You don’t need to invest a lot in order to make your property look great. Things that matter the most include the floors (make sure they’re not cracked or peeling), that the first impression of the property is positive and people can see that it’s clean; make sure door handles work correctly etc.
You should receive three quotes for any job repair that’s more than $1,000 and it’s perfectly acceptable to choose the cheapest option. Sign and date an agreement with the selected contractor that details the quote, timelines, expectations (quality of finish and clean up) and build financial penalties in if the parameters aren’t met.
Screen potential tenants
The appearance of your property should reflect the calibre of tenants you wish to attract. For example, a really good tenant won’t look at a rundown place – which is another reason it’s worth putting some time and effort into the maintenance of the property. The rule of thumb is simple: for high-quality tennants, seek to ensure your property also appears to be of a high-quality and worth investing in.
Also, make sure you screen your tenants as they come through. Keep an eye out for red flags, such as large debts, bad references, pushiness (negotiating on their terms), lack of employment (or even irregular employment), if they have a poor credit rating or are bankrupt, aggressive dogs, any evictions in their history, any deception on their application, any relevant criminal records – such as property damage or theft, any requests for paying deposits after they move in, looking to move quickly and anyone not planning to stay the entire lease term.
Do a complete background check every time, call references, complete credit checks, ensure they are employed and know your ideal renter. Focus your marketing spend on the most likely price for your demographic.
Don’t rush in to renting it out – these scenarios tend to attract tenants who leave abruptly or don’t pay. Think of it like a job interview, it’s a two-way street – you both need to be happy with each other for the best possible outcome.
Maximize your bungalow’s space
The top and bottom floor can be rented out as separate units in a bungalow if it’s done properly, where the only shared space would be a living area. The difference between renting out your whole property a month and renting it out in two separate sections could be an income of hundreds of dollars each week.
Keep parking separate
You can get a little bit more of a return on your investment by renting your parking space separately to the property itself. For example, if the property includes a parking pad, you may be able to rent out the garage separately, which can add an additional income stream.
Select a property in a good location
Remember, people are happy to pay for convenience and when it’s -40 outside, you don’t want to be walking or waiting for your LRT or bus to show! Needless to say the location of your property matters. If it’s near transport (LRTs and buses), schools, shopping centers and other prime amenities, it can boost the value of your property up – whether you plan to sell it or rent it to tenants.
For more information about where to invest your money, search search the CanadianAccountantSearch directory for professionals who can help.