Renting out Your Home in Ontario - Ask an Agent: Luke Thompson

If you’re thinking of purchasing an investment property in Ontario, you’re most likely hoping to rent it out to a tenant! Although the process can seem simple, being a great landlord takes a lot of work and focus to ensure that both you and your tenant benefit from the arrangement.

We spoke with New Purveyors REALTOR® Luke Thompson all about what it takes to rent out your home in Ontario. There are lots of ways you can prepare that will help you not only get the most money for your home but also protect yourself and your tenant from any issues that may arise during the tenanting process.

Luke has some quick tips for people looking to turn their home into an investment property, or to get more out of their current investment property: 

1. Spend the money to spruce up your current home. Luke explains that fresh paint, light fixtures, flowers in the garden, cupboard handles, and even floor grates can really change the way potential tenants view your home. The more work you put into making it a nice place to live, the better tenants you’ll attract and the more you’ll be able to make from rent. The larger your budget, the better these updates can be, and the more you can expect to earn. For example, if you have extra rooms in your home that can be converted into liveable and comfortable bedrooms, you may be able to rent your space to multiple tenants at once and increase your income this way. If you have a nicer kitchen, you may be able to attract larger-earning families. If your home has great curb appeal, potential tenants are more likely to see the value in your home from the get-go and be more excited to pay exactly what you are asking for.

2. Ensure that you’re carefully vetting potential tenants. Collect proof of income, credit reports, and references to ensure that your tenants will respect the space and treat it like their own home. Trust your gut! When you are vetting tenants, you have to remember that they are moving into this space for a minimum length of a year, with the intention to do everything in it. You will want to bring in tenants who you think will treat the space in a manner similar to how you do. This is also totally up to YOU! Some landlords may appreciate a tenant who likes to decorate or potentially paint the walls fun colours, some landlords may prefer a tenant who keeps the space as-is. Some landlords may enjoy a tenant who wants to start a garden in the backyard, while others may prefer the grass stays intact. You don’t have to prefer a certain type of tenant just because a friend or colleague tells you they’re the best option.

3. Familiarize yourself with the Landlord and Tenant Board website, process, and procedures. Rentals are now more regulated than ever before! They follow a simple and ethical process for both the tenant and the landlord. You will want to ensure you are following the rules closely so that each potential tenant is treated fairly, and so that you are too. The more educated you are on the process, the easier it will be to make sure that you are a fair landlord and also treated fairly by your tenant.

4. Make sure you talk to a real estate professional like an agent or lawyer to make sure you understand the process, your rights, and your tenant’s rights. As previously stated, the more educated you are on the process, the better equipped you will be. Having an expert or two on your side that can help you figure out complex situations is incredibly valuable, and ensures that you are legally protected.

Luke Thompson, REALTOR®

luke@newpurveyors.com

613 316 5967