Awesome! You've finally purchased your dream house, and you're now lucky enough to call yourself a Kelowna homeowner! That is an amazing accomplishment, and you should be extremely proud. Some people go their whole lives without having a place to call their own.
However, like many new homeowners, you may be looking at your finances and realizing that owning a home can bring some of its own financial challenges, especially, if your not adequately prepared. This can be extra stressful, but luckily, there are a few ways to release the financial pressure. Like renting!
Renting can be a great way for new and seasoned homeowners to generate income in-order to pay off a mortgage, reduce debt, or simply generate a little extra cash flow. However, it can be risky, and takes a little savvy to pull it off successfully for the homeowner and renter alike.
The Dion-Ivan Real Estate Team wants to see you succeed!
Our team of expert real estate agents have put together a survival guide to renting success!
5 Rental Survival Tips From Dion-Ivans Real Estate Team!
Even though the benefits to renting your home are numerous, you need to do your research! It takes some time and dedication to be a good landlord, and you may find you don't necessarily have the time or means to dedicate. Read up on your local landlord/tenant laws and be sure you can follow them. Do you have enough for insurance? Things wont always run smoothly, so make sure you know all your rights and how to handle difficult situations such as unpaid rent, property damage, pets, unruly tenants, and appliance maintenance. Be sure to ask other landlords what they look for in a good tenant and what they tend to avoid. Learn from others' mistakes. If you are well prepared, then renting can be an easy and profitable investment!
Preparation is key, now more than ever! You've done the research, but now it is time to execute the plan. Take a look at other rentals around you. What do they include?How much do they cost? Can you charge more for being pet friendly? The better your suite, the more you can ask. Having freshly painted walls, clean floors, and comfort appliances are all going to boost your profit. Kelowna has a very low rental margin, so you can usually get a great price for your home, however Kelowna people have class and tend to desire the basic luxuries such as dishwashers, washer/dryers, garages, central air conditioning (it gets hot out there!), and great flooring. Be sure to list your rental on reputable websites and local papers. However, keep in mind, most people will be looking online. Utilize local Facebook groups! Use these key words suggested by RentalsOnline.com that are proven to have a bigger impact on rental potential: “hardwood flooring”, “granite”, “state-of-the-art”, “stainless steel appliances”, “maple”, and “vaulted ceilings”.
Ask For Help
We can't do everything alone. Again, talk to others who are renting, and reach out to local professionals. Professionals will be able to help you keep everything by the book for an easier transition. Contacts the CRA about tax credits, deductions, and any claims you may have to make. Likewise, a local real estate attorney can help get you up to speed on local zoning laws and even draft up a landlord/tenant contract. It will be well worth the investment.
Yes, Kelowna rental market is low and in HIGH demand, but that doesn't mean you should charge an arm and a leg. Offer a quality home for a FAIR price to encourage interest and long-term tenants. You can still earn a great steady income without being greedy. Remember Air Canada's alleged price hike scandal during the forest fires? Don't be Air Canada...
This is your home, and you reserve the right to be picky! DO BE PICKY!!! While most of the people out there are great, it is impossible to tell simply by looking at someone. Some “stable families” are awful and other “low-income singles” make great tenants! Screen your potential tenants carefully. Have a discussion with them and ask the hard questions. Credit checks are essential but may be misleading. Remember, always check their references! Once you have found a tenant you trust, get the security deposit, sign the contract, and come up with a routine payment schedule (direct deposit if you can).
If properly prepared, renting your home might just be the key to really enjoying your new investment! Use your common sense, utilize these tips, and follow your gut! You've got this, and The Dion-Ivans Real Estate Team has got you!
Contact us today with your renting, buying, and selling questions.