So you're ready to pull the trigger on buying a rental property? But how will it make you money?
In today's market there are many options a savvy landlord has to generate income from their rental property.
Long-term rentals are anything longer than one month and also include when tenants rent a property for months at a time. In Ontario, all landlords need to follow the Residential Tenancies Act and resolve disputes through the Landlord and Tenant Board.
In Ontario, a short-term rental is all or part of a
dwelling unit rented out for less than 28 consecutive days in exchange for payment.
Combination of Long and Short-Term
In a property you can have a mix of long-term and short-term rental units. This is a great way to maximize income with different strategies.
“Flipping” properties can be lucrative, but the #1 rule is, you make your money on the buy. You have to purchase a distressed property for a real deal and renovate according to your comparables. You don’t want to fall trap to over renovating because it can make the property harder to sell and you may not see any extra money in the end.
Besides renting out the property which I explained above, there are some other easy things you can do so you aren't leaving any money on the table:
For long-term rentals (LTRs) always charge your utilities as extra.
If there is a garage or shed on the property you can rent it out separately (and it doesn't have to be rented by a tenant!) So many people are looking for storage space, you will be surprised how fast it will go.
Add in coin-laundry machines.
For short-term rentals make sure you're maximizing what you can charge for cleaning and pet fees.
Honor your own policies and actually charge cancellation fees.
Offer "concierge services" for an extra fee (stock the fridge with groceries, arrange an outing, decorate for a surprise birthday or anniversary).
You can sell popular items in your rental (beach towels, pillows, decor items, etc).
Partner with local shops to stock up your supplies and allow guests to purchase.