Should I rent my house?

on Condo, General, Landlord, Property Management, rental, tenant, Toronto April 2nd
Toronto homes

Should I rent my House?

When you have an opportunity to travel and work in another city, there is  the question of  what to do with your house or condo while you are away. Most of us don’t have the luxury of leaving it vacant and if we do there are costs involved to make sure the house is safe while you are away (see vacancy protection).  Usually the choice is whether to rent or to sell.

You need to be comfortable with the idea of renting your house first of all and  secondly you have to be comfortable financially as well.  If you are  going to lose sleep at night,  fretting about what your tenants are doing to your property you should probably not consider being a landlord.

Most tenants do not do damage, sometimes they even improve the property! If the property is  in a well maintained condition and is in a desirable location to renters then it could be good candidate for worry free renting.   There is rarely any significant damage except for normal wear and tear in properties of this caliber.

The second issue is the financial considerations. We suggest that at minimum you should have about 3 months costs set aside to to be comfortable. This would include the cost of your mortgage, taxes, normal utilities  and fees associated with the property.  In the event that there is a problem with the tenant going into arrears or an unexpected major repair expense you will need this cushion to carry you through.   Real estate investment can be risky and as soon as you rent your house you are now an investor and need to start thinking like a real estate investor.

If the rental income will cover the carrying cost of  the property then you are in good shape to rent your house.  if you are required to put money into the property each month to keep it afloat, then you need to think hard about how much stress the extra cost will cause.  If the extra costs will not be burden and are not excessive, your house may still be a viable investment property.

In conclusion: you need to consider if your property is in a location that is suitable for rental and if you are comfortable with having a tenant living in your home.  You also need to make sure you have the financial resources to keep the property maintained even in the event it is not producing income for a period of time.

Please contact us for a free assessment of the viability of your property as a rental property.

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