Buying a home to rent out is an attractive investment for many Calgarians. If you’re considering investing in a rental property and becoming a landlord in Calgary, there are a few things you need to consider before making a decision.
5 Things to Consider Before Becoming a Landlord in Calgary
1- Rental Real Estate is a Business, and Being a Landlord is a Job
If you want to become a landlord because you think all you’ll have to do is sit down and collect the rent, you’re wrong. Rental real estate is a business, and being a landlord can be a demanding job. Here are some of the main responsibilities landlords in Calgary have:
- Market the property;
- Screen tenants;
- Ensure the structural safety of the rental house or apartment;
- Ensure the rental property is in good condition to live in at the beginning and throughout the tenancy; and,
- Inclusion and maintenance of major appliances, such as heating and plumbing.
Since you’ll become a business owner, you’ll also have to prepare a business plan, including items like a budget for potential repairs and maintenance, a list of trusted professionals to run maintenance and repairs, and financial projections contemplating expenses and potential revenue.
2- Choosing the Right Property Matters
Renting and maintaining a house isn’t the same as a condo unit or townhouse. When buying a rental property, you need to take your lifestyle, your potential expenses, and your investment goals into consideration. Another important item to consider is the location of the property. You may have a beautiful property to rent, but if it’s located in a less desirable location, you will have a harder time finding potential tenants.
3- Finding the Right Tenants May Be a Struggle
The landlord-tenant relationship is a business partnership, that’s why finding a tenant they can trust is one of the major struggles landlords in Calgary have. Tenants that cause damage to the property and don’t take responsibility for their behaviour can cost you more money than your investment brings in. Landlords have to take the task of screening their potential tenants seriously. We advise property owners to prepare a thorough questionnaire to help them during the tenant selection process.
4- A Rental Property is a Hands-on Investment
As we mentioned above, landlords have the responsibility of ensuring the property is habitable at all times, that’s why they must make inspections at least once a year during the tenancy, and before the tenants move out. This ensures tenants are leaving the property in good shape, and to make major structural and cosmetic repairs if necessary.
Besides maintaining the property in habitable condition, there could be the case when the landlord may need to run a major renovation of the property, in order to increase its appeal to potential tenants, and these potential expenses should be included in your landlord’s business plan.
5- Sometimes, Being a Landlord is a 24/7 Job
When it comes to being a landlord, you can expect occasional after-hours calls from your tenants if they have any major incident, such as a fire, gas incident, plumbing or heating issues. You have to be ready to respond to these types of calls promptly with the means to solve them. This includes having your rental property insured.
You Can Enjoy the Benefits of Property Ownership, Without the Stress of Being a Landlord
Chances are, you already have a job and other obligations. That’s why hiring a property management company is the best way to ensure that your property is taken care of, without adding any additional work for you.
With the help of a property manager, you will have the peace of mind that your property is taken care of 24/7. You will also have the best tenants, and rest easy knowing that your property is compliant with all laws and regulations.
We at Amhurst specialize in supporting small landlords in the Calgary area. Our team of experts will take over your landlord to-do list and will make sure that your property is well cared for and giving you revenue, without giving you the stress of property ownership.
Get in touch to get a quote and start your journey as a property owner in Calgary.
