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 Landlording
can be a good way to provide you with a regular income as well as the
potential for capital
growth. However, buying a rental property is certainly not a
get-rich-quick scheme. The net rental income you receive may not be enough
when you consider the headaches you might have.
Many people don’t ever invest
in rental properties because they hear stories about calls from panicked
Tenants in the middle of the night. As the author of this article and the
owner of nine rental properties, I can say that I’ve never received a call
from a Tenant in the middle of the night. Not that I haven’t had my share
of headaches.
When you
first purchase a rental property, you will likely have to decide whether
you will manage your rental property or hire a licensed Property Manager.
It’s recommended, at least in the beginning, to manage the property
yourself if you are able to. You will gain a huge amount of experience
which will help you later on in better managing a Property Manager.
Being a Landlord in BC brings
many legal and financial obligations. A Landlord must comply with
governing bodies and health, safety and housing standards required by law.
In addition, rental income is taxable and must be reported to the Canada
Revenue Agency. Whether you rent out several apartments in a building or
complex or simply your basement suite, you are in the business of being a
Landlord and should approach landlording in a professional and
business-like manner. The more you know about the law the better off you
and your business will be. There are several free
Landlord Forms, such as
receipts, move-in forms and more, available on this site that you will
find helpful.
If you do end
up hiring a Property Manager, expect that your rental income will be
reduced because of the fee they charge. On the other hand, a good Manager
could take on a lot of the work and stress associated with running a
rental property.
Read more
about
Hiring a Property Manager.
Quick Links:
Landlord Forms
Evictions
Renovations
BC Tenancy Guide
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Got a question?