Any landlords on here..looking at buying an income property--good/bad idea

[tinambulance]

We have several rental properties but all are in the same town as we live. So far haven't had any major issues. Currently renting to our daughter and made her sign a lease - gave her a set of rules, move in checklist, etc. - just like we do for any other tenant. As a landlord, you must enforce the rules and follow your provincial landlord regulations. Be a good landlord and always screen your tenants with an application process. This has already saved us from renting to one particular tenant who looked good on paper, but after talking with him, we heard "red flag" comments!!!

[terry2144]

I don't own property but have rented for years. I have been miffed at being turned down because I was a single mom. I rented from a couple who used a rental agent to screen applicants. They told me that in 20 years only one problem with tenants. I am a good tenant but they always were coming by to make improvements. Nice. It established a good relationship for us. Also at Christmas they would send us a gift card for pizza etc which I always appreciated but didn't expect. I think on their part this closeness with tenants really paid off.

[lucy16076]

My recommendation is to buy a duplex, not a house, in your area and look into getting a property management company for the following reasons:
1. In a duplex there is usually a tenant in at least one apartment at all times to pay the mortgage. If you have a house, you may have some months between tenants and you have to come up with the mortgage payments yourself
2. If there are two tenants then you're less likely to have a grow op, because of the chance of being discovered by the other tenant
3. Our property management company doesn't charge too much, and they collect the rents, kick people out if they don't pay their rent, find us new tenants who have been thoroughly screened and make emergency repairs if we're not around to do it.
4. Buy a property in your area because properties need maintenance, the same as your home. You don't want to spend 3 hours driving to a property to find out you need a new hot water heater, etc., then arrange for a new one, then have to drive back another day to have it installed. And you don't want to pay the property management company to do anything except emergency repairs, as they charge a hefty price for that.
5. In our area duplexes are a hot commodity. Ours have increased in value at least 20% in the past three years. Not only do your tenants pay your mortgage, but as time goes on the property increases in value also. Hopefully by retirement we can use some of that rent as income.
6. You should always have a mortgage on your rental properties. Why? Because the interest you pay on rental property mortgages are a write-off, whereas interest on your home mortgage is not. So mortgage your rental property to the hilt and use that money to pay down your own mortgage. Or sell your home for a profit and buy another one with the rental mortgage money. Also, if you don't have a mortgage on the rental income then the rental income is taxed as direct income and you pay high taxes on that, without the write-offs of any mortgage interest you pay.
7. If you're handy buy a duplex that needs a little work, and then fix it up before you rent it. We've done that and increased the value of the property by thousands of dollars, with just a little money and elbow grease. We did it after work and on weekends. But be careful of the area you buy in. If it's a known crime area you'll have problems getting and keeping good tenants.
8. Make sure you have a thick skin. It's not easy being a landlord. It takes time and effort. enants always want something repaired, improved or changed. You have to decide what you're willing to do and what you're not, and stick with it. If you let them, tenants will bleed you dry with their wish list.

These are things just off the top of my head that you should consider.
I would never buy a house, only a multi-unit property.
I would never rent to family.
I would never buy far away from where I live.

I'm also a landlord....this post has great info! Take the leap with an informed mind!! It can be a lucrative investment choice!

[lucy16076]

When I was renting a room in a town house, our landlord never collected cheques. We had to take them to the bank and deposit the rent into her account (I don't remember all the details we had, you'd have to contact your bank about that).

12 post dated checks or e-transfer works well too

[lucy16076]

I don't own property but have rented for years. I have been miffed at being turned down because I was a single mom. I rented from a couple who used a rental agent to screen applicants. They told me that in 20 years only one problem with tenants. I am a good tenant but they always were coming by to make improvements. Nice. It established a good relationship for us. Also at Christmas they would send us a gift card for pizza etc which I always appreciated but didn't expect. I think on their part this closeness with tenants really paid off.

This is how I run my business.....treat the tenants with kindness but with professionalism, and for the most part, they will be good tenants

[dirtdog]

Trust you heard about the meth lab explosion in a rented condo in Liberty Village, Toronto. Another option if you are living near a vacation area is to buy a vacation property. Rentals are short term, you can make just about as much as you can with an annual rental, you get your money up front, and you may find you only have to rent to relatives, friends or referrals from friends and relatives. Another option to consider. And when it isn't rented you can enjoy it yourself.

[Chantel]

Does anyone have experience with buying a home with a suite and renting the suite? My fiance and I might actually be able to afford a house if it comes with a suite in the basement, and we'd be able to basically pay our mortgage with that money.

I don't think people are stupid enough to run a grow-op or meth lab out of the basement when their landlords live upstairs, but what else should I be aware of? I don't personally know anybody who has done this, but I know people do it.

[xlxo]

For a grow-op.... they just need three months to make a harvest. Depending on the size of the grow-op.... you might not notice it. But the moisture/condensation/humidity, high heat and electricity consumption would be giveaways.

Meth? Would there be an odor? Or just bad ethnic cooking? Meth chemicals are not illegal... it's the combination that makes it a legality issue.

Once you discover a problem tenant.... do you feel comfortable asking/convincing them to leave?

Here's one way to run a rental...
http://globalnews.ca/news/1705346/sh...ouver-rentals/

[lucy16076]

[QUOTE=Chantel;6175437]Does anyone have experience with buying a home with a suite and renting the suite? My fiance and I might actually be able to afford a house if it comes with a suite in the basement, and we'd be able to basically pay our mortgage with that money.

I don't think people are stupid enough to run a grow-op or meth lab out of the basement when their landlords live upstairs, but what else should I be aware of? I don't personally know anybody who has done this, but I know people do it.[/QUOTE

If I had to do it all over again as a young adult, this is exactly what I would do! Sure there are bad apples, but being a landlord is not all bad