Renting out your Regina house rather than selling it could be a great idea. Among other things, you may be able to generate cash flow, enjoy numerous tax benefits, and increase the value of your property over time.
Being a landlord, though, is a huge responsibility. And if this is your first time doing it, you may find it to be daunting. But luckily for you, today’s article from Cressman Realty & Property Management will help you acquaint yourself with the numerous aspects that go into renting out a home.
1. Understand your responsibilities.
Being a landlord can be anything but easy. It goes far beyond knowing how to cash rent checks every month.
To begin with, do you know how to fill a vacant rental unit? As you probably know, a vacant rental unit is every landlord’s worst nightmare. So, knowing how to fill a vacancy quickly is key to running a successful investment.
Can you screen tenants effectively? No two tenants are ever created the same, so you’ll need to screen them in order to improve your chances of landing a reliable, responsible one.
Will you be able to respond to pesky 2am maintenance calls from your tenant? As a landlord, you’re responsible for maintaining your property to habitable standards.
What about knowledge of the Saskatchewan landlord-tenant laws? Can you name a few of the laws that landlords are required to know? Do you understand the eviction process in Saskatchewan? Note that ignorance of the law is never a defense in a court of law.
2. Draft a solid lease.
Although not required by law, having a lease agreement is an essential aspect of running a successful rental investment. A good lease agreement is one that not only protects you and your investment, but also your tenant as well.
Will you accept pets? If you won’t, then make sure to stipulate that in your lease agreement. You’ll also want to let your tenants know of any repercussions of going against this will.
But note, however, that even with a “no pets” policy, you cannot turn away a tenant because of having an emotional support animal. According to the Saskatchewan Human Rights Code, landlords must make reasonable accommodation to persons with disabilities.
But if you choose to accept pets, then it’d be in your best interest to have a pet policy in place. You may even go further and require your tenants to charge your tenants a pet fee. The fee can either be a pet deposit or a pet rent – but not both.
Other things you may want to include in your lease agreement include:
- Rent rules. That is, when, where and how tenants should pay rent.
- Security deposit rules. According to the security deposit laws in Saskatchewan, you can only ask for a maximum amount of one month’s rent equivalent. So, if you charge a monthly rent of $1,800, the maximum limit for the deposit should be equivalent to $1,800. And, it goes without saying, that your tenant reserves the right to pay that deposit in two installments.
- Rental Maintenance. Make sure to state who is responsible for what when it comes to the property’s maintenance.
- Subletting Rules. As a landlord, you have a right to allow or not to allow your tenants to sublet your unit. If you allow it, then make sure to state the requirements that the tenant must meet before doing so. And if you don’t, make sure to mention it, as well.
3. Determine the right rent amount.
How much rent are you going to charge your Regina tenants? As a landlord, you must know how much to charge for rent. The right should be able to generate enough cash flow to pay for operating expenses and profit.
So, how should you exactly calculate the rental price? Sadly, there is no golden rule in this regard. But as a general rule, though, the right rent should be around 1% of the rental property’s market value. So, on a $150,000 property, the monthly rent should come to about $1,500.
4. Understand the Saskatchewan tenancy laws.
Are you familiar with The Residential Tenancies Act, 2006, and The Residential Tenancies Regulations, 2007? If you aren’t, then you may need some help in the management of your property.
Understanding those laws is fundamental to running a successful investment. One legal mishap with your tenant can have a significant impact on your investment.
5. Get your home ready to rent.
Renting out your home will mean getting into competition for tenants with other landlords. So, if you don’t stand out, you risk long vacancy periods. And as you probably know, vacancies are every landlord’s worst nightmare.
So, how exactly do you get your Regina home ready to rent? Well, what exactly you need to do depends on the present condition of your property. But generally speaking, you’ll want your home:
- To be spotless. Hire a professional cleaning services to give your home a thorough clean.
- Have functioning electrical, plumbing and ventilating systems.
- Have properly functioning smoke and carbon monoxide detectors.
- To have an attractive curb appeal.
- To be pest-free.
6. Focus on property marketing.
Once everything is ready, begin laying a marketing strategy. Vacancies can be costly in the long-term, so have a plan on how you’re going to find a tenant.
The first step in the process should be to draft a rental ad. Make it as click worthy as possible. Among other things, have a catchy headline and include as many attractive photos as possible. Next, list the ad on as many platforms as possible.
7. Hire a property management company.
You should only consider self-managing your property if you have the skills and experience of being a landlord. Otherwise, hiring a property manager can be the best option.
A comprehensive property management company will help you in all aspects of your property’s management.
The Bottom Line
Renting out your house in Regina can be a smart move. However, its success will largely depend on how it’s managed. If you’ve got the skills, then by all means go for it. But if not, then hiring experienced hands is the best option for you!
Contact Cressman Realty & Property Management Services today to find out how we can help you rent out your Regina, Saskatchewan home.