Thinking about getting into rental property?
We speak to a lot of homeowners who want to rent their home but it was never their initial intention. They purchased it to occupy, but sky-high rent prices helped them decide to become Landlords. This feels like a good move, however, just because a home is great for owner occupancy, does not mean it is a great rental investment. This article will provide some substantial perspectives as to why you should buy a certain type of rental property intentionally instead of just turning your home into a rental property by "default".
THE BUY: 2Bed/1Bath, mid level, built 2010 to 2017, near Skytrain
When we have the pleasure of guiding clients on their purchase decisions, we always suggest to buy a home which can be rented regardless of the market. A 2 bed/1bath condo, falls into this category. This housing type rents to 2-4 people; generally small families or roommates. Since there is only 1 bathroom, repair and maintenance items such as leaky fixtures, grout and caulking and renovations are much cheaper. This housing type on mid level floors sells for less money than competing 2Bed/2Bath condos as there is a much stronger demand from owner occupiers. The premium you pay in purchase price is not recouped with rents. Today, we suggest buying homes built between 2010 to 2017. We do not suggest buying brand new to avoid the premium developer price. A home built between 2010-2017 has no rental restriction bylaws and the building has worked through a couple years of new building issues, warrantee problems, etc. Buying existing product comes with more information, so you know what you're getting. Buying property close to the Skytrain is important as lower automotive costs free up space in tenant's budgets so they can pay more rent.
THE SETUP: Fresh paint, cleaning, lightbulbs, photos
Remember to focus on these three concepts: utility, neutral, minimalist. You want off-white walls, neutral flooring, spotless condition, and working lightbulbs (same type and colour). Homes that have been freshly painted, cleaned, and kept up rent faster and for top market rents. Look at the big apartment owners rental ads; they are simple, utilitarian, clean, and ready for the market. They don't do this because they are run by asset managing number crunchers who don't understand style and design. These pros know that this is how to attract the best renters as quickly as possible. Follow their lead. They don't have money by accident.
THE SALE: Where to market your great rental condo for rent?
We offer a free consult to any one interested in buying rental property or who currently owns but would like to learn more about how to win as a Landlord. Contact me directly and I look forward to speaking with you!