01 November 2011 ~ 0 Comments

Costs of being a landlord in Toronto

While there are great advantages to being a landlord in Toronto – a constant source of income and freedom from office hours are among the perks – there are several drawbacks.

So what challenges await you as a landlord in a Toronto rental?  Consider the following:

1. You’ll be responsible for the upkeep of rentals in Toronto
This could be a major problem, especially if you are renting out an old property that barely passes the housing code. Your best bet is to invest in a newer property among Toronto apartments or houses for rent.

2.  You might not get paid on time for Toronto rental properties

When this happens, you become a debt collector.  If you’re lucky, it will mean a phone call or two.  Even so, it may take you weeks or even months to collect.  And in the worst scenario, you’ll have to file notice with the Ontario Landlord and Tenant Board to begin the eviction process.

3.  Responsible for the safety of the tenants

As a landlord, you’re responsible if something happens to tenants due to your negligence. That means you need to be diligent about maintenance and repairs. Make sure you have covered health and safety aspects like adequate fire precautions and that all your electrical wiring is regularly checked.

4.  Checking your tenants’ credibility

To protect yourself, you’ll need to do a credit check and call the last two landlords for a reference.

Becoming a landlord is a complex legal, financial and emotional undertaking.  Before you think about purchasing property to rent in Toronto, make sure you know Canadian landlord and tenant law.  One resource you should definitely consult is the Canadian Legal Information Institute.  You should also research the industry and talk to other landlords.  And, of course, when you have questions, such as how to make a proper lease, always consult a professional.  If you do your homework, becoming a landlord in Canada’s largest city could work to your advantage.

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Image By: WATERBOYsh

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