We are all here in the business of earning/making (more) money and one of the best ways to get it is by being in the Edmonton rental industry. It’s a better alternative than being in the stock, bond and futures market.
There are tons of available rental properties for sale in the Edmonton MLS, you can pick and choose to your hearts desire but a fair warning… like any good investment, it’s not that easy.
We have listed down some tips for you to follow in order to succeed in the business. Read, digest and implement.
1. BUSINESS IS BUSINESS: The moment you decide to have a property rented out, your mindset should automatically treat that property as a business (instead of still clinging to the homeowner state of mind).
You are now a landlord, a business owner. Start crafting business plans such as ways to screen tenants, home maintenance management, budget for repairs, etc.
2. LEASE MARKETING STRATEGY: To prevent vacancies, you should have a “lease marketing strategy” in place. There is a co-relation between occupancy rate and the seasons. More potential tenants usually want to move in the summer time, so if you can, it is best to try to stretch and/or end the lease contracts in summer.
Having lease contracts end in summer will help you get more people to be interested in the property, increasing the chances of getting a replacement lessee as soon as the current tenant leaves.
3. BACKGROUND CHECKS: Failure to have a thorough background checks are the begging to horror stories. You wouldn’t want to have a drug addict reside in your rental property, wouldn’t you?
Aside from preventing drug addicts in using your property as a pothouse, you would also have the ability to ensure that rent will be paid consistently - Knowing a lessee is financially capable to pay the monthly rent would be a lifesaver.
4. LEASE CONTRACTS: Now that you know the basics, we move on to the more complex. There are lots of available lease contract templates available in the Internet, you can find some here: Alberta Rental Agreement Forms and Landlord Resources
It is also to your best interest to get familiar with the rules and regulations. Get familiar here: Canada Mortgage and Housing Corporation
As far as best practices go, you should have a lawyer review all lease contracts before signing on the dotted line. This ensures that the lease contract is error free.
5. DISCRIMINATION: It’s 2016, c’mon don’t discriminate! It’s really unnecessary and could land you in deep trouble. Remember where all here for the money!
Alberta Human Rights Commission has a very informative piece in regards to discrimination. An excerpt: “Discrimination includes harassment of a tenant or potential tenant when it is based on one of the protected grounds.
The AHR Act covers tenancy situations from the moment a rental unit is advertised, or otherwise said to be available, to the end of the tenancy.”
Read full article here: Residential and commercial tenancy: What you need to know
The points we discussed here have been tested and proven to help landlords succeed in their business endeavor. Take heart and follow and you might just join the ranks of the successful sooner than you expect it. Good luck!
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