Finally, you have your very own investment property! It must be a very exciting time for you! We at Team Leading Edge know that feeling all too well, our Managing Partner, JP Dumlao also has ventured into rental property investments.
This Wednesday, we’d like to share with you 4 things to do before you list your property on Airbnb or other similar websites.
You ready? Let’s begin!
1. FAMILIARIZE YOURSELF WITH THE LANDLORDS & TENANTS RIGHTS
First things first, you have to know you right as the landlord and your client’s right as the tenant. The cold hard truth is that not all rental transactions will have a happy ending, so it is for your utmost benefit that you arm yourself with the right legal knowledge to fight off bad tenants in the future.
The key here is to know how to legally remove tenants incase they misbehave, damage your Edmonton property or be delinquent in their rental payments.
Here are some good sources:
- TENANT RIGHTS AND LANDLORD RIGHTS IN ALBERTA
- CITY OF EDMONTON'S LANDLORD AND TENANT ADVISORY BOARD
- INFORMATION FOR TENANTS
- RESIDENTIAL TENANCIES ACT
- CREATE A BINDING AGREEMENT
One of the foundations of a good working relationship between a landlord and tenant is mutual agreement between a set of rules and regulations. Tenants should know from day 1 what they can and cannot do inside the property. It should also be clear what would happen if and when they brake the agreed upon rules and regulations.
The key thing here is to have everything documented and in writing. A signed document of both parties will have more weight in court vs a simple verbal agreement.
3. SCREEN YOUR TENANTS
A simple background check will not hurt. Ask potential tenants if it’s okay for them to provide you the contact information of their employer or former landlord. A good tenant will not hesitate; a shady one will make excuses.
4. HAVE A CONTINGENCY PLAN
As we have mentioned in our first point, not all rentals will end with a happy ending, a contingency plan will help shield you from any financial burden or emotional stress.
Prepare an emergency fund that will be used to pay for Taxes, Mortgage, Insurance, Repair and Maintenance just in case the tenant abruptly leaves and doesn’t pay rent and outstanding utilities. You wouldn’t want to be caught of guard.
The emergency fund will also buy you extra-time to look for a better tenant replacement.
Once you get these 4 things done, you’re property investment will have the security it needs and you might be ready to expand in the future! What an exciting thought!
Team Leading Edge will just be here waiting to help you find the next best Edmonton investment property.
For more from Team Leading Edge, follow the team on Twitter at @teamleadingedge. Make sure to subscribe to Team Leading Edge to get newsletters on the Edmonton Real Estate market.
Note: Remember, you can access all our available Homes For Sale in Edmonton through our Edmonton MLS Listings page.
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