How to Be a Good Landlord

| Investing

Let’s face it. Landlords are real estate investors who need to protect their investments. This is likely the reason landlords have a bad rep. If this has kept you from investing in real estate, remember, we need more good landlords out there providing affordable long-term housing.

You should think of good landlords as kind of housing heroes, creating opportunities! So, instead of worrying about becoming one of the bad guys, use our tips on how to be a good landlord with a guilt-free investment serving an honourable purpose!

Understand Tenant Rights

Although you need to know your rights as a landlord, good landlords pay close attention to the regulations protecting their tenants. Some of the most important rules include:

  • Providing access to vital services including heat, hot and cold water, electricity, and fuel (such as natural gas)
  • Maintaining temperatures of at least 20°C (68°F) as a vital service between September 1 and June 1
  • Ensuring the home is safe and in good repair such as mould free, leak-free, sound roof, pest free, secure locks and windows, electrical systems up to code, etc.

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Set Fair Rental Rates

To set fair rental rates, speak to a real estate team like us that understands the housing market. We’ll help you find property in an area where the rent covers your mortgage and condo fees/ property maintenance without overcharging your tenants.

We’ll also calculate rent based on the average market rates on comparable units in your specific area including:

  • Number of bedrooms
  • Unit type such as basement apartment, townhouse, condo, etc.
  • Unit specifics such as newly renovated, chef’s kitchen, access to outdoor space, etc.
  • Local amenities such as easy transit, grocery stores/shopping, pool/gym, etc.

It can be tempting to charge above the average, but fair rates cover your costs, help attract and retain suitable tenants and allow you to build equity.

Make Paying Rent Easy

Streamlining the payment process is a good thing for both you and your tenants. Auto deposits help ensure the rent is paid on time while reducing tiresome paperwork. It basically makes life easier for everyone.

Be Prepared to Help

Even well-maintained properties can have issues. From clogged toilets to broken appliances and unreliable HVAC systems to leaky roofs, landlords have a responsibility to provide safe living conditions.

Good landlords provide an emergency contact and respond promptly to requests. You can reduce calls by providing a list of emergencies like burst pipes or broken water heater, and alternative contacts for non-urgent issues like broken cabinet doors or suspected mould. Always address and resolve issues quickly, whether they are urgent or not.

Be Approachable, But Professional

Being approachable ensures tenants feel comfortable discussing issues. As a result, your property remains well maintained and you can also help retain good tenants. However, being too friendly can make tenants feel uncomfortable. For example, inviting them in for holiday drinks could feel like you’re infringing on their privacy while dropping off some treats or a gift card keeps you in the good landlord zone. So, keep things cheerful, but professional.

Still have questions about real estate investing in Toronto? Here are a few more posts you might find helpful:

Transparency and Communication

Clear communication helps build a trusting relationship between you and your tenants. Some tips to keep the lines of communication open include:

  • Respond promptly to tenant messages
  • Review the lease together and answer questions to ensure both sides understand the terms
  • Disclose any relevant information about the property such as past issues, a sketchy history, likelihood of selling in the near future, etc. so tenants make an informed decision
  • Be empathetic even if you feel your tenant is making a mountain out of a molehill
  • Provide advanced notice and a clear reason you require entry to a unit

Keep Up with Unit Maintenance

Proactive maintenance is just as important as responding promptly to tenant complaints. In fact, preventative maintenance helps protect your investment, keeps tenants safe, decreases costs for repairs and replacements, and improves energy efficiency. Scheduling regular maintenance for things such as roof and HVAC system inspections is simply good for business!

At some point, you may want to sell your rental property. But can you sell it when you have tenants? Read this post to find out how to sell a tenanted property.

Keep Accurate Records

Maintaining accurate records helps resolve misunderstandings. From missed rent to tenant complaints, documenting tenant communication helps ensure you’re meeting tenant needs. Your records also provide legal documentation should things turn sour.

Records should include:

  • The date and nature of requests and complaints
  • The date of your response
  • How and when issues are resolved
  • Receipt of rent
  • Notice of late rent
  • Notices requesting unity access
  • Any communication you send regarding undesirable tenant behaviour

The Bottom Line

Becoming a good landlord is actually an excellent strategy to see a better return on your real estate investments. It helps you attract and retain good tenants, protects your property’s value and even reduces operational costs.

The Christine Cowern Team can help with all your real estate investing plans. Give us a call at 416.291.7372 or email hello@christinecowern.com to get in touch today!