14 Dec Tips for Buying a Rental Property in Ottawa
If you’re considering purchasing a house or condominium in Ottawa for an investment to rent, there are fundamentals to understand to make a good investment decision. You must also understand what is required of yourself (time, effort and money). Additional monthly income sounds appealing but the bottom line is to approach it as a business to be successful. Here are a number of items to consider for buying a rental property in Ottawa:
- Understand the Residential Tenancy Act (Landlord and Tenants Rights)
- Determine if buying an investment rental property is right for you. Think about the time and effort you will need to spend on the property and its management and maintenance.
- Cash or finance? Analyze which is the best approach for you.
- Find the right location. Will it appeal to tenants and is it in a location easy for you to access to manage the property.
- Status of the rental market. What is the present supply of rental properties on the market and how quickly are similar properties renting?
- Success may require a long-term outlook.
- Budget for the unexpected
- Remember to renew your leases and adjust the rent according to the Ontario rent increase guideline
- Don’t forget rental property at tax time i.e. income and capital gains
Have questions about investment properties or the Ottawa real estate market, please feel free to contact us.