Many of us dream about finally being able to quit our 9 to 5 jobs by investing in rental real estate in Nanaimo. What could be easier? You and your realtor locate a good rental property, find a good tenant, collect the rent check every month . . . then sit back and relax.
Well, if it were really that easy then everybody would be a landlord. Here are a few things to think about before you invest in rental property and become a landlord:
- Invest in a rental property that is low maintenance. Tenants will typically not care as much for their place as would you, if you lived there as an owner-occupant. The more items you have in your rental property that can break, the higher your potential repair costs will be. Spas, elaborate landscaping that requires a lot of upkeep, and fancy kitchen appliances are just three examples of features that could end up costing you more money in repairs than what you are taking in from rent.
- Ask yourself if you really want to be on call 24 hours a day, 7 days a week. Experienced landlords and property managers know that if a toilet gets clogged, a heating system goes down, or if a tenant locks themselves out of their house, it is not going to happen during normal business hours. When you are a landlord be prepared for the possible 2 a.m. wake-up call from your tenant with an emergency that - in the mind of the tenant - needs to be solved right away. Many professional real estate investors that buy rental homes engage property managers to deal with tenants. While there are pros and cons to this, there is always the added expense of the property manager fees that will cut into your profits.
- Familiarize yourself with B.C.'s landlord tenant laws. Many beginning landlords think that they can be picky and choosy about who they rent their property to and end up accidentally violating our housing laws. Successful landlords know that the last thing they want to do is discriminate - even by accident - and receive a notice of violation, or worse. Before you decide to become a landlord consider the true costs involved in owning rental real estate and do the necessary research to make your income real estate in Nanaimo a success.
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