Probably the main thing that stops potential real estate investors from buying rental properties is the fear of getting a bad tenant. I know there are bad tenants out there but it’s my firm belief (and my experience) that taking some fairly easy and straightforward steps can prevent most cases of bad tenantitis! DRESS YOUR PROPERTY FOR SUCCESS Your property will attract the level of tenant it deserves. If your property is dirty and in a state of disrepair it will attract tenants who... [read more]

The Wynne government recently introduced legislation called the Ontario Fair Housing Act to try to control house price increases and rental price increases in the Greater Golden Horseshoe area. Part of the act is to cap rental increases to 2.5% per year. So a landlord will be able to raise the rent of an existing tenant by no more than 2.5% per year. Ontario had rent controls before this but they only applied to properties built before 1991. So technically, a landlord could raise the rent... [read more]

Buying a residential investment property is a big decision and should not be done without first doing your homework. Here are 10 important things to consider before you purchase. 1. What Type of Property Do You Want There are many types of properties to invest in including condo apartment units, condo townhouse units, freehold townhouse units, semi-detached homes, single family detached homes as well as multi-family homes such as duplexes and triplexes. A condo apartment unit is probably... [read more]

When is the best time to sell an investment property? Given the price increases over the past couple of years in the GTA real estate market, many investors have most likely thought about cashing out of their real estate investment. While the strength of the real estate market is an obvious reason to sell, real estate investors must also consider the situation with the current tenant before listing their investment property for sale. Many landlords don’t understand the... [read more]

Real estate investors use a variety of calculations that can help them make decisions on potential investments. The most common calculations include Capitalization Rate (Cap Rate), Monthly Rental Factor, Gross Income Multiplier and Cash-on-Cash Returns. Cap Rate  CR = Net Operating Income/Property Value Probably the most widely known. It can be used to find the market value of a property if the market cap rate is known and the property has a solid verifiable income and expense... [read more]