![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2019\/03\/landord-first-time-min-min.jpg\")
<\/a><\/p>\nPhoto: James Bombales<\/em><\/p>\n Buying a home isn\u2019t always about finding the perfect place to raise a family or host those summer barbecues \u2014 for some first-time buyers, owning real estate is the gateway into the realm of landlordship.<\/p>\n Becoming a small-scale landlord can look easy, but there\u2019s more to it than collecting the rental cheques every month. Whether you lease out an individual property or have a self-contained rental unit in your home, such as a basement apartment, buying to become a landlord requires you to be a hands-on business owner.<\/p>\n \u201cI tell my clients upfront [that] you\u2019ve got to think of it as a business,\u201d says Nawar Naji, a Toronto real estate investor<\/a> and broker at Chestnut Park Real Estate. \u201cIt\u2019s not just about, \u2018Let\u2019s go buy a condo and rent it out.\u2019 You\u2019ve got to think of it from a business perspective. Think of the operation side of it, taxation aspect of it, and the other part of it \u2014 the exit.\u201d<\/p>\n\n With television shows like HGTV\u2019s Income Property<\/em> showcasing the benefits of owning a rental property, like easy income and a boost in property value, renting out your basement looks appealing. Yet, without proper preparation or knowledge of provincial landlord and tenancy laws, the landlord dream can quickly go sour.<\/p>\n \u201cIf people have a bad experience in the first year [of landlording], and the first tenancy is problem-ridden, nine times out of 10 I would think they would get out of the business,\u201d says Susan Wankiewicz, executive director of the Landlord’s Self-Help Centre, a non-profit legal clinic for Ontario’s small landlords.<\/p>\n If you do your homework and plan accordingly, becoming a small landlord can be rewarding. As Naji and Wankiewicz tell it, here\u2019s what you can expect if you\u2019re working towards that first investment property.<\/p>\n Landlording isn\u2019t a passive investment \u2014 it requires maintenance, time and experience to nurture into a successful money-maker. As with any business, being present and aware of your investment\u2019s unique needs will start you on the path to being a successful landlord.<\/p>\n \u201cYou\u2019ve got to be active in the business,\u201d says Naji. \u201cIt\u2019s not just paying the mortgage, getting the rental cheque and calling it a day. There\u2019s more work to be done to it.\u201d<\/p>\n Naji, who has been investing in real estate since 2006, says a new landlord can expect the operation stage of landlording \u2014 running the property \u2014 to be the longest and most cumbersome. Semi-annual inspections, repairs, collecting rent and regular maintenance are the landlord\u2019s responsibility. You could hire a property management company to take care of this for you for a percentage of your rental earnings, but Naji advises not to within the first year of a new investment property.<\/p>\n Photo:\u00a0Julien Dumont\/ Flickr<\/a><\/em><\/p>\n \u201c[That way] when you pass it on to a property manager, and they call you [about a house issue], you\u2019ll understand if it makes sense or doesn’t make sense,\u201d he says. \u201cIf you haven\u2019t done it by experience, somebody can call you and can come up with explanations that don\u2019t necessarily make sense \u2014 it might not need any repairs.\u201d<\/p>\n Naji also recommends building a team of professionals that specialize in residential investments. Your accountant, repair person or real estate agent, he says, should have knowledge of landlording in order to fully understand your needs.<\/p>\n Legal jargon may be a dry read, but understanding tenancy laws in-depth before you become a landlord could save you a whole lot of trouble down the road.<\/p>\n \u201cUsually we meet landlords once they\u2019ve rented and they\u2019re in trouble,\u201d says Wankiewicz. \u201cIf they were to do the front-end research and understand what they\u2019re getting into before they rent, I think they\u2019d be better off.\u201d<\/p>\n Wankiewicz has seen every kind of problem come through the LSHC office: tenants that default on rent; pets that suddenly appear unannounced; damage to the property; and tenants that decided to move their whole extended family into the unit. Whatever the issue may be, Wankiewicz explains that landlords who familiarize themselves with the provincial landlord and tenancy laws beforehand have a better understanding of what their rights are. For instance, she still encounters landlords who haven\u2019t fully read Ontario\u2019s Residential Tenancies Act<\/a> and don\u2019t understand that the law equally applies to both high-rise and second suite rentals.<\/p>\n “Landlords are surprised because they think that [because] they\u2019re renting in their home and they\u2019re the king of the castle. That\u2019s not the case. They\u2019re subject to the same legislation as if it were a high rise rental,\u201d she says.<\/p>\n Photo: James Bombales<\/em><\/p>\n If a tenancy isn\u2019t working out and an eviction is required, Wankiewicz warns that the process isn\u2019t a quick fix. If a tenant stops paying rent, a landlord will need to give a termination notice and apply for a court hearing to the Landlord and Tenant Board as soon as possible.<\/p>\n \u201cWhat we are seeing now is that it\u2019s taking anywhere from four to six months for a landlord to terminate the tenancy and recover possession of the rental unit,\u201d she says.<\/p>\nPut your back into it<\/h2>\n
<\/a><\/p>\nKnow it like the back of your hand<\/h2>\n
<\/a><\/p>\nThe price is right<\/h2>\n