There are many factors to consider before buying a rental property. Especially in a real estate market that is volatile. This is why working with a licensed Realtor® is crucial. From the beginning, they can help ensure you don't waste any time or make any mistakes in the real estate process.

Consider These Things When Buying a Rental Property

Here are some crucial things to consider if you are in the market to buy a rental property.

1. Get pre-approved to determine what you can afford to buy. 

Knowing what you can afford to buy is crucial to the next 6 steps in the real estate process. Whether you choose a mortgage broker, credit union, or bank, this will always be your first step in buying real estate. Once your mortgage preapproval is in place, it's time to shop for your rental property.

2. Research Property and Neighborhood Details

Be sure to research the property your eye is on.

1. It is very important that the property is marketable. Consider the number of bedrooms and bathrooms, does it have parking, amount, and cost of repairs/renovations needed.
2. The neighborhood is just as important as the home. Is the neighborhood growing? What is the crime rate and is there any planned economic development? What school districts are in the area and what is their reputation? Are there nearby shops, parking, and bike and walking trails? Be sure to evaluate these details to make a solid decision on the home.
3. Be sure to know the Annual Property Taxes and rental rates before you buy. 

3. Consider Hiring a Property Manager

Hiring a property manager can take much of the worries away from you and your family. A good property manager will give you the attention you deserve, and help you run a profitable investment. They will be your partner to help you make the best investment decision.

4. Educate yourself on the Residential Tenancy act

Ontario's Residential Tenancy Act is long and tedious. This is another reason why you should consider hiring a property manager. They would have all the rules and regulations at their fingertips and be fully prepared to work within the framework.

5. Have a system in place for keeping track of income and expenses

Implementing a system to keep track of your income and expenses is always a good idea. If you're not an accountant, this might be tough, especially at tax time. You may be able to rely on your tax professional and they also may be able to suggest a few online platforms that might help. 

6. Find Quality & Trustworthy Tradespersons for Repairs and Maintenance

Your rental may require repairs and maintenance before renting out. Collect referrals from friends, family, and other rental property owners. Renters will require your full attention and having quality, trustworthy tradespersons available to you and on hand will prove to be very valuable.

7. Know that you are in it for the long haul

Buying, maintaining, and pleasing tenants is not for the lighthearted. A mindset that you are in there for the long haul will take some of the stress out of rental property ownership. Don't forget, real estate is still the best investment money can buy. There's never been an investment more highly recommended. It's stood the test of time.

Contact me today for a full list of great rental properties available for purchase.