Securing a trouble-free tenant is every landlord’s wish, and to do that requires treating the position of landlord as a professional job. As a landlord you should:
- Familiarize yourself with your area’s landlord-tenant laws.
- Tend to anything broken or hazardous and ensure the appropriate number of working smoke and carbon monoxide detectors are installed in the appropriate places (Pro tip: swap the batteries every daylight saving time).
- Research what comparable properties in your area are renting for to determine a fair rent, factoring in all your property-related bills. Increase the rent annually to the legal amount to keep up with the market.
- Use a government-issued lease agreement template and include any additional rules you have. Consider having a real estate lawyer look it over.
- Screen potential tenants by doing an interview, credit check, calling work and landlord references, and checking work history.
- Make sure your property is insured and encourage your tenant(s) to get their own insurance.
- Report rental income on your taxes and take advantage of relevant tax credits.
- If you want to rent your condo, check if it’s permitted and what the condo rules are to ensure you are covering all the bases.
With proper due diligence, you stand a greater chance of enjoying a passive income, without a big headache.
