69% of Canadians think owning a rental property is a “savvy investment” according to the Star. Based on all the interest we’re seeing in new rental mortgages, we’re not surprised.
But it’s not all peaches and cream, especially in Ontario.
Real Estate lawyer Joe Hoffer says Ontario’s Residential Tenancies Act entails the strictest landlord regulations”probably in North America.” The Act, which governs Ontario’s 1.35 million rental units, affords tenants several pages of rights.
As a result, the Star has these suggestions for any aspiring landlords:
- Know your tenant’s rights, and know what you can’t do as a landlord
- Ensure vendors provide full disclosure of compliance with building and fire codes
- Check with the Landlord and Tenant Board to ensure there’s no disputes on the property you’re buying
- Use a lawyer that’s done several multi-unit property closings and can advise on rental pitfalls
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Some additional resources for prospective landlords…
- FRPO: Resource http://canadianmortgagetrends.com/wp-content/uploads/2007/12/Rental-Mortgages.jpg for property owners/managers with “free” legal advice for members
- Rent Check: For checking tenants’ credit reports
- Landlord’s Self-Help Centre: A non-profit serving Ontario landlords
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Last modified: October 9, 2014
I wonder if this landlord would be compliant with Ontario’s Residential Tenancies Act.
http://www.funnyordie.com/videos/74
(Editors Note: We try not to be a stick in the mud and censor comments but we will provide this friendly warning. The above post is from a reader and contains material that may be offensive. If you find profanity distrubing [and some do] please do not click on this link. Thank you.)
Whew, for a moment I thought you meant 69% of Canadians OWN rental property, that would mean I am “normal” by owning them
It goes both ways, we have been lucky to have great tenants/family, while my friend was relieved that her 4-month student tenant will be gone in a week
NSB, You hit it on the head. It often pays to do more due dilligence on a tenant than you might think is necessary. Bad tenants not only stress you out, but can wipe out a whole year’s return on investment if there’s a rental dispute.
Here’s another tenant check service that does credit checks on renters:
Tenant Verification
My husband and I rented our home when we moved out of province and it was a NIGHTMARE dealing with rental issues in Ontario. As a landlord you have no power at all even if your tenants neglect to pay their rent. Even after the tribunal board agreed we were owed money, they moved and there doesn’t seem to be any recourse to get the money back, even though they owe us around $5000, we’re stuck with it. NEVER own rental property in Ontario and NEVER hire a renal management company that starts with L and ends with arlyn.
Before I bought my investment condo, I hired a financial advisor (Know Your Roi dot weebly dot com) to help me look at the profitability of different properties and buildings. I created my search based on this and it reduced my worry significantly and helped me to make an objective decision, which is especially difficult as a newbie and in this housing market. I had done my research on costs etc., but lot of things I was not aware of. When I looked for help, there were lot of commission based advisors trying to rip off buyers, but I was looking for a fixed fee.