7 Secrets of Profitable Landlords

Profitable landlords are on top of everything, from maintenance to late payment fees. To make sure you become a profitable landlord, it’s worth avoiding typical rookie mistakes and paying close attention to the following list.

1. Profitable landlords know their numbers

It’s not enough to calculate a mortgage, add on the profit you want, and rent out a property for that amount. There are a ton of other numbers you must consider. Here are just a few: property taxes, insurance, strata fees, vacancy rate, property management and maintenance & repairs.

2. Successful landlords know how to find the right rental properties

It is essential to have a good knowledge of real estate, especially in your local neighborhood. You need to know how much people are paying for rent in the area and for different properties.

3. Savvy landlords are aware of tax advantages

Don’t wait for the CRA to knock on your door and tell you how to reduce your tax bill. Profitable landlords will research tax information and determine exactly which expenses are deductible and which aren’t—saving a ton of money. It’s highly recommended that you hire an accountant to guide you through the tax process.

4. Landlords aren’t out to make friends

There is a balance between being a fair and reasonable landlord and trying to make friends. Successful landlords are kind, respectable, and reachable. However, you also don’t want to be dropping in for coffee every other week.

5. Always screen tenants

The best landlords know the importance of thoroughly screening every tenant. Don’t be tempted to take on any tenant because your property has been vacant for a while. If you panic, you rush the process and cause yourself costly problems in the future, such as expensive evictions.

6. The best landlords report tenants to credit bureaus

Profitable landlords understand the benefits of rewarding on-time rent payers and punishing those who are late—it’s the fair thing to do. Tenants who know you report to credit bureaus are less likely to fall behind on payments, which means fewer evictions to deal with.

Here is a great resource:https://landlordcreditbureau.ca/

7. They are exceptionally well-organized

Being organized from day one is an absolute must. It is good to get into an organized habit even if you’re starting with just one property. Ensure you have a well-organized system that you can scale up when you expand.

You will need to keep a record of:

* Signed agreements

* Rental payments (due dates and late fees)

* The payment of property taxes and insurance

* Copies of insurance policies

* Certificates and necessary inspections

Property managers can take away many of the day-to-day tasks of a property rental business, like maintenance, repairs, rent collection, property marketing, and tenant acquisition.