Author: Amy Collett is the creator of Biz Well, a website that helps professionals and entrepreneurs build and strengthen their personal brand
As the housing market continues to stay hot, many people are deciding to get a piece of the pie by purchasing investment properties which they can then refurbish and sell or rent out to the public for supplemental income. If you are interested in this business, then you must know that there is more to it than just signing on the dotted line. Here at Badass Women Investors, we know how to find the success you crave, so we have some tips to get started with your first Canadian investment property.
Location Is Important
In order to truly be successful with your investment property, you need to find a place that will draw interest from people looking to rent. The old saying rings true, location is everything. When looking for potential properties, start by looking at the neighborhood and at the proximity of important places like hospitals and city parks where parents can take their kids to play.
It’s also not a bad idea to look at statistics in the area such as the crime rate and the general income so you can make an informed decision. With many families moving - more often now in the time of COVID-19, you should also look at the school district and check out reviews and education scores. Being close to a good school could be a great selling point when looking for renters.
Features of Profitable Properties
While the neighborhood is important, what is inside your investment property could be just as attractive to renters. For instance, many people like a large kitchen where families can gather and eat together. Other people may be attracted to a home that has a large basement where they can host extended family. Additional perks that draw an audience include a patio or a pool in the backyard.
These days, many people are interested in finding a home that is energy-efficient so they know they are doing their part to help the environment. To make that happen, consider installing LED bulbs, smart appliances like thermostats, and adding solar panels to the roof which will use less energy and lower the electric bill.
In some cases, you may have to add attention-grabbing features to the home, or if you find the right property, you may be able to purchase it as-is. That means that the seller is not responsible for making any repairs and you may have to take on that responsibility yourself as the buyer. The benefit of purchasing “as-is” is that you can usually close on the property faster and tailor the renovations to exactly what you would like in a home.
Managing the Property
Once you are ready to bring in renters, you will want to decide how you will manage the new property. Most importantly, you need to decide if you want to manage the space yourself or bring in a professional landlord. If you don’t have a lot of tenants coming and going then taking care of the core responsibilities may be easy to do on your own. However, remember that you will not only be collecting rent but you will also have to make sure that the property is always well-maintained, that people are paying rent on time, and that all expenses are paid, among many other tasks.
If it seems to be a bit much, or you own multiple properties, then you may want to bring on a landlord that can handle all of those tasks for you. When looking for property managers, you want to interview several candidates and find one that is trustworthy, has an understanding of financial matters, and has past experience as a landlord with low tenant turnover rates.
In the end, buying your first financial property will take some trial and error but the rewards can be incredibly satisfying. If you need more advice, Badass Women Investors can help you out. Email us at c.joordens@gmail.com.