Consider renting your basement to supplement your retirement funds, taking in a student, or purchasing an investment or rental property. Here are things to consider before beginning.
Are you familiar with the local landlord-tenant laws
- Become familiar with the provincial laws for your Rental Insurance
Do you possess a rental contract?
- Prepare a detailed leasing agreement in accordance with your province’s legislation.
Do you know any professionals in maintenance?
- Maintain a list of reliable repair providers that you can contact as needed.
Do you have a flexible timeline?
- Your tenants are your clients, therefore they will demand a certain level of customer service from you.
- Moreover, Provide your contact information and define what constitutes a “emergency” for you.
Your town or homeowners association may restrict your ability to become a landlord.
- Check with the city hall in your area for municipal ordinances.
- Furthermore, Check with the condo board for guidelines governing the renting of a unit or room if you own a condo (s).
Will it provide you with a reliable source of income?
- Before deciding on a pricing, you should investigate comparable rental charges in your area and deduct your expenses to determine cash flow. Mortgage interest, property taxes, insurance, and utilities are examples of expenses.
- Therefore, Include increases in utility expenditures, condo fees, and homeowners association fees in your budget. Also, do not assume you will gain tax benefits; be informed of what tax deductions you can and cannot claim.
Are you interested in renting to roommates?
- If you have multiple tenants in the flat, you may want to give them a roommate agreement. It can facilitate conflict resolution and serve as a reminder that you expect them to maintain the living area. There are numerous pre-written contracts available online.
Do you have sufficient Rental Insurance?
- Call us to examine your insurance policy, even if you’re only renting out a room for a month. We will assist you in understanding your policy, determine if you need to expand your liability, and explain how to reduce your premiums.
Your tenants are insured?
- Inquiring about their tenants insurance can assist you initiate a discussion regarding the limits of your policy. Most first-time tenants are unaware that their landlord’s insurance policy may not cover their personal property.
Do you know what to do if a tenant is problematic?
- It might take anywhere from three to twelve months to evict a tenant. This translates to months of missed rental income that you may never recover.
Reduce your risk by conducting a reference check on all prospective tenants.
- Some tenants might be exceptionally resourceful when supplying background documents. It is advisable to request a comprehensive credit report, which is offered by a number of online credit reporting firms. In addition, you can request a criminal background check for more information.
Need more information on Rental dwelling policies or need to get free insurance quotes, feel free to contact us at 9053628080 and speak to our licensed insurance broker and get best insurance advice.
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