rental property

[emg]

Hello everybody,

I want to know what everybody thinks of rental property. Does anybody have any positive experiences? Can you really make some money?
I understand it depends on the particular circumstances.....

[Zonny]

I've never done it personally, but used to work in the same office as the residential tenancies hearings took place. Just from what I've seen there, not worth it IMO. If you get the wrong people in your unit, it can be very expensive in repairs, etc., and can be very difficult to remove such people from your rental.

[brunt]

You would have to run the numbers on the particular property, but I would guess that more likely than not that it would not be worth it at this point in time.

I personally rent the place that I live in right now. The economics of this particular place at this particular point in time means that it costs me about half as much to rent as it does to own the exact same place. My landlord is losing money every single month that I stay here. And I am a great tenant. If I were a bad one, he would be losing even more.

You can make it work, but it requires a lot of effort and luck. And if you have only a single tenant, then your return can be spotty at best - one band tenant can undo years of profit from good tenant.

[Gsxrboy]

I am a little confused with the question, are you speaking of purchasing a property and then renting it out? Or renting a property for yourself and if there is any savings doing so?

I purchased a three bedroom condo in 2000 when I was 26. I lived with two other people and they pretty much paid my mortgage during that time. I have now rented the unit to an extremely nice person with kids and for the past 3 years have had no issues. This person actually keeps the place better than I ever did. I have not raised the rent, no need to, since the mortgage payments are very low, I do not make any money on this rental unit since it only covers the mortgage and maintenance. I am not worried about this since the mortgage is very small and within 10 years it will be paid off.

[ame555]

I've seen the good and bad -- my dad has had a couple of rental properties for years -- one house - he had the same tenants for 12 plus years, never a problem -- great investment -- other house -- has had some awful experiences -- i.e. chasing people for rent, them moving out leaving the house destroyed etc etc etc.

Also if you have to pay someone to do repairs you will loose a lot $-- if you are handy and can do most repairs yourself you wil save a ton of money.

[tjthemanto]

Hello everybody,

I want to know what everybody thinks of rental property. Does anybody have any positive experiences? Can you really make some money?
I understand it depends on the particular circumstances.....

You can if you get the right tenant

SCREEN & SCREEN & SCREEN your tenant before you let them in ...once a bad tenant gets in its almost impossible to evacuate him atleast in ON ..its a long & expensive process .

So make sure you get the right tenant to begin with .

[HD00141]

ive got 3 rental properties and i agree with what everyone has said SCREENING your tenants is VERY important do a credit check(you will be able to write off the cost of the credit check against the income you gain from the rental at the end of the yr) my advice is only buy a house if u live inthe province eg. 2 of our rental properties are house in BC since we do not live there we hvae to pay property mgmt company to look after the property in addition the rates they charge on repairs of any kind are an arm and a leg i with condos you have to worry about assessments its not a quick get rich scheme but it can add some additional income into your wallet every mth hope that helps

[fame4ever]

We have a rental property and have lucked out with amazing renters, but I hate it. Constant stress (but that's me) I always worry about the rent (and these guys are awesome, never missed or been late in 3 years). Repairs always seem to occure when you don't have the extra funds and I'm getting frustrated of sinking in money into the rental house when there are fix ups I'd like to do on our own house.

Definantly screen screen screen, don't just rely on references, anyone can be a reference. Credit check, facebookm goole all the stuff. I facebook potential renters (you'd be surprised how many people don't have their provate settings set, or what they'll post) If I see a bunch of party photos, for example, I cross them off the list. Also when we are showing the place, I look for how I would treat the house. So if they didn't remove their shoes when they came in I crossed them off the list. Ask for everyone to attend the showing. Again you'd be surprised by what you'll see or stories you'll hear.

Long story short, I wouldn't do it again, and we have had a good experience

[ashedfc]

One has to evaluate the Risk-vs-Reward while buying rental properties, (if the purpose is to generate income solely from renting).
For any reason, if it doesn't works out, than, the exit strategy is very costly.

[lealgen]

I have 2 rental properties and so far have had no issues. The key is to have a positive cash flow, so the rent takes care of mortgage, taxes, all repairs, etc and we still make a little bit of money every month on each rental. Also, like some other SC'ers mentioned - screen, screen, screen! One tip I got from a TV show - when the prospective tenant is viewing the rental, have someone look inside their car - if it's clean, chances are they will keep a clean house too! I haven't tested this out yet, but I will next time I get a new tenant!

[MortgageQueen]

Much depends on your downpayment and cash flow too. Don't leave yourself short. It would be wise to make MORE money then just covering the mortg. in order to pay for unexpected or regular house repairs/maintenance and of course, taxes.
I TOTALLY agree with others on the "screening of tenants" DO NOT go by your "gut feeling" about someone. There are actually tenant screening companies out there. . .well worth the extra money.
All that said, as a mortgage agent I see lots of awesome investment properties bought by my clients and it is a very good money making investment.
Study your market area and make sure it's an area that's growing economicly. . .that will in turn better your chances of a steady growth value of your investment.

[guessboi]

Another good tip to screen is to check and add your tenant on facebook. Since we have friends that know each other...if the tenant damages my condo, she will be in deep trouble.

[shennig]

I would also consider examining your rights and obligations under your provincial residential tenancies legislation.

[snow00774]

One tip I got from a TV show - when the prospective tenant is viewing the rental, have someone look inside their car - if it's clean, chances are they will keep a clean house too! I haven't tested this out yet, but I will next time I get a new tenant!

haha, I saw that episode too!!! Ironically the best tenants I've hever had are the couple that are in the property right now, they moved in last month and it's the best I've ever experienced. They don't have a car. Go figure

[LizCabral]

I had 10 rental properties at one point.

1) you make your money when you buy. make sure the rents cover all expenses, plus some profit for yourself. owners like to fluff the numbers

2) SCREEN SCREEN SCREEN your new tenants

3) Learn the Tenant Protection Act & get a copy of it. That will be your best friend.

4) Have a 'team' ready: real estate agent, lawyer, home inspector, person doing the repairs

5) keep the relationship with tenants professional - they're not your 'friends' (I hope that doesn't sound terrible)

Good luck.