An income property is a home that is bought or developed in order to generate income, typically by renting it out in part or in its entirety. Using your home as an income property can be a financially rewarding experience, either to provide extra income, or to help you pay off your mortgage. Before taking action it is important to understand some of the key points involved in using your home as an income property.
Some things about renting to consider before you start:
1. Check the Municipal regulations – are you legally permitted to turn your home into an income property? Would the unit adhere to all existing building and fire codes?
2. Legal Considerations - make sure you understand the landlord – tenant relationship regulations in your province. This will have a great impact on what you can and cannot do as a landlord.
3. Does your home require renovations to make it tenant ready? Your home should look clean and tidy inside and out. This will bring more renters through your property and you will have a more receptive audience. Update your home if necessary. From simple changes such as fresh paint in a neutral color to major renovations, try and make your home look and feel as spacious, bright and comfortable as possible.
4. When you’re ready to rent, price and market your unit competitively. Scan the classifieds and visit rental websites to find out how much similar units are being listed for. You can also ask your Real Estate Royal Agent for pricing advice or to help you find the right tenants through a listing.
There is a lot to consider when turning your home into an income property. While it may seem daunting from the outset, doing sufficient research to understand what is involved is key to making it work on your terms. If you can turn your home into a successful rental property, it can be very rewarding - you‘ll have an extra source of income and tenants can help pay off your mortgage!