|
Looking for a property in Canada?
|
|
Show results as:
|
|
|
|
|
| Price: |
|
|
|
Beds: |
|
Baths: |
|
Type: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and/or
|
|
|
| Language:
Specialization:
|
|
|
|
Looking for a Royal LePage office in your area?
|
|
|
Investment Properties
What is an investment property?
Real estate purchased for the purpose of generating financial returns is called an investment property. The property could be a house, cottage, farm, condo, or plot of land. Buying real estate is traditionally a sound and profitable investment, offering both rental income and capital gains.
Residential rental properties that qualify for financing
Most financial institutions will finance the following investment property purchases:
- Rental properties, such as apartment buildings
- Condominiums
- Retirement homes
- Nursing homes
- Mixed-use properties, such as apartments with commercial spaces
- Other forms of co-ownership (such as co-op, co-housing, undivided interest, and life lease)
The Canada Mortgage and Housing Corporation (CMHC) is Canada's leading provider of mortgage loan insurance for multi-unit residential buildings. With CMHC-insured loans, borrowers can obtain mortgage financing up to 85% of the value of the property without a maximum dollar amount and therefore reduce the amount of equity needed.
Being a landlord
Whether you have a small apartment in your basement or want to buy and own a large high-rise, as a landlord you are subject to laws and regulations that define your responsibilities and what you can and cannot do. Since each province and territory has its own landlord and tenant legislation, make sure you know the regulations that apply to your area - there are some surprising differences between provinces! The CMHC’s collection of Provincial and Territorial Fact Sheets is great reference material to get you started.
10 quick tips for renting your investment property
- Contact your local or municipal government to first determine if you are legally permitted to turn your home into an income property. Work with them to ensure the unit adheres to all existing building and fire codes.
- Get to know the landlord-tenant relationship regulations in your province.
- Inform your insurance company about your plans for renting out space in your home, and ask them if you require additional coverage.
- Get your home renter-ready. Whether it requires simple changes like a fresh coat of paint or major renovations, make your home look and feel as spacious, bright and comfortable as possible. Your home should look appealing inside and out in order to attract potential renters.
- Price and market your unit competitively. Scan the classifieds and visit rental websites to find out how much similar units are listed for. You can ask your Royal LePage real estate agent for pricing advice, and to help you find the right tenants through a listing.
- Conduct a screening process for applicants. Consider running a criminal background check, as well as a credit check, on prospective tenants.
- Draft a written tenancy agreement. It may contain information such as the date the tenant will move into the rental unit, the rent amount, the date rent is to be paid, what services are included in the rent (such as electricity or parking) and any separate charges, as well as the rules that you require the tenant to follow.
- Consult a lawyer to look over the contract. Although not necessary, a lawyer can ensure there are no legal problems or issues with the contract before you present it to your tenant.
- Request a minimum deposit in advance that may be used against any property damage or unpaid bills, depending on the laws in your province.
- Have the tenant sign the agreement, and provide him or her with copies.
For additional information about purchasing and financing an investment property, contact your local Royal LePage real estate agent.
|
|