Category: Rental Property

It may sound very fancy when someone says that they have purchased a house of their own, but you cannot imagine the depth of the amount of money and time required to maintain a home properly until you are making that investment.

Though investing in real estate is no doubt a fascinating way of investing your funds, but before you take a dip into that pool, you should be well prepared and well aware of the market.

Here are some tips for you if you think of buying rental property in the Greater Montreal Area.

Decide your purpose for buying the property

You will need different kinds of house depending on whether you want to make it your home or want to have tenants in that house.

But if you are going to buy it only for investment purposes and your target is to sell it later at a higher value, you have to carefully study the high and lows of the market.

Buy it when the market is low so that you can sell it when the market is at its peak, and you will gain a hefty amount out of the transaction.

Having financial stability

Buying a rental property is not an easy task. You have to pay at least 20%-35% of the total cost upfront, and you will also have to show a valid source of funds for the rest of your payments within 90 days.

Hence there is no need to say that you have to be very sound financially before you enter the real estate market. Make sure you have enough funds to survive the investment, and it is better if you use your own money rather than the borrowed fund, as the professionals suggest.

Maintain continuous cash flow

Buying a house implies you also have to maintain it. And maintenance causes a lot of expenses. Starting from buying insurance for the property as soon as you buy it to paying all the utility bills every month will cost you quite a lot.

If you keep tenants, you will have some rental income, but the expenses can sometimes exceed the income, as you cannot expect tenants throughout the year. So you also have to consider this gap between rental income and expense.

However, the good thing is if you face a loss, then you can deduct it from your other incomes, which will cause a reduction in your tax payment.

Researching about the property

Firstly, before buying a property, always check its resale value so that you do not have to regret it later if you fail to find a profitable selling proposal for it.

Also, check the locality’s crime rate, the availability of emergency services, or stores for essential commodities. All these will help you decide whether you should make the payment or not and will help you set the rent level and check whether the locality has the scope of further developments.

All these together will affect the resale value of your property.

Conclusion

These are few things to consider before jumping to any investment opportunity on rental properties in the Greater Montreal Area. 

Many property management firms in the Greater Montreal Area are there to guide you in the process and take care of your property, but they will also take a big chunk out of your rental income.

So think twice and prepare yourself well before you buy any rental property.

MTL GROUP is a property management and financing company, operating in the Greater Montreal area in Quebec. Our professionals are just a phone call away to assist you with your property management and financing needs.

Finally, you decided to put your rental property for rent in Greater Montreal. But, before making any commitment, you need to think about which property rental upgrades will really pay you off?

So, before making any upgrading, here are a few guidelines on what rental property upgrades will always give you a good return on investment irrespective of what type of property you possess.

Refurbish your apartment 

It will enhance your rental apartment’s beauty with a fresh coat of paint by transforming the look. Nowadays, many great neutral colours such as grey and white shades are in trend. Always make sure to stick to semi-gloss paints, which reflect the light.

Repair the Floors of your rental property

Whenever you think about upgrading your rental property, firstly, the floors of your apartment are an excellent investment. Refurbishing the Floors such as hardwood is modern, and besides this, it is easy to keep it tidy. If your pocket doesn’t allow you to bear hardwood’s cost, you can consider another option, such as bamboo, for the flooring system.

Fixing the lighting system

Great lighting can enhance your rental property’s beauty from dark and dingy to quite attractive and charming. Going for the modern lighting system will give your apartment a fashionable look. So, to glorify your apartment, it is recommended to use track lighting or wall accent lighting, which can surely brighten up the darker spaces. Also, add lighting control systems to set their area as per their mood and save money over time.

Refurbished the Bedroom Area

Adding a bedroom or refurbishing the existing one will surely add value to your rental property. You can go from a two-bedroom home to a three-bedroom for more rental income, which will help you earn more rental income.

Design the Bathroom Area

Just put up the modern sink and add on some new hardware to the cabinets. If the toilet of your apartment appears old and dirty, replace it. Also, to beautify your bathroom, add a new mirror, and finally, your renovation is done.

Upgrading kitchen

After the bathroom, the kitchen is another area of focus for renters. Ensure that your kitchen is thoroughly clean and tidy along with the inside of all the cupboards and drawers. Usually, you can easily replace broken tiles in your kitchen area rather than retiling the whole floor. Also, don’t forget to paint the cabinets and drawers. If your apartment doesn’t have a dishwasher, then try to add a new one. It would help if you stuck to classic design and neutral colours. To add some more charm, you can also add some latest wallpaper designs.

Conclusion

By spending a little amount from your pocket, you can surely upgrade your rental property rental in Greater Montreal, which will pay you off later.

MTL GROUP is a property management and financing company, operating in the Greater Montreal area in Quebec. Our professionals are just a phone call away to assist you with your property management and financing needs.

It is observed that furnishing a property for rental is quite expensive. The most confusing question is, before renting your property, should you spend money on furnishing it or let your tenants furnish it? So, before proceeding further, here are a few guidelines which you need to follow when deciding whether you should rent out your unit furnished or unfurnished to the people. 

So, let us explore the benefits of renting out the furnished or unfurnished property to your tenant.

Here are the benefits of renting out a furnished property:

1. While allocating a furnished property, you can demand a higher rent from your tenant. Well-furnished property rents are 50 % more than comparable to the unfurnished property.
2. Secondly, being a landlord, if you are targeting to be involved in a short-term rental business for approximately 12 months, then the surely furnished unit will work for you as it attracts more short-term rentals as renters don’t have to move their belongings.
3. Furnished units get rented more quickly as tenants can save their costs and time associated with furnishing.
4. Apart from these things, if you attractively decorate your apartment, it will definitely demand better treatment from your tenants.

Now, let’s have a look at the benefits of renting out an unfurnished unit:

1. Firstly, tenants may stay for quite a long period as they have furnished the apartment as per their needs and space. Furnished properties are usually rented for a short period, whereas unfurnished units allow tenants to make their own apartments.
2. Most of the tenants are quite happy because they have decorated and designed or customized the space as per their requirements.
3. All the tenants’ personal belongings are not required to be insured as all the furniture belongs to them, and they are solely responsible for the same.
4. Needless to worry, if any damage happens to your tenants’ personal belongings, it will be taken care of by them only.
5. Whenever any unit gets furnished, the tenants will bear the cost; otherwise, if you want to carry the cost, you can increase the rent, which will cover the furnished cost incurred by the tenants.
6. Additionally, the unfurnished property requires less management than the furnished ones since they experience more frequent tenant turnover.

Conclusion

To sum up, furnished properties attract younger tenants who are more likely to enjoy a furnished apartment’s convenience. Also, it is easy to furnish such properties inexpensively. While landlords having larger apartments leave them unfurnished since tenants having bigger families are likely to decorate and customize them as per their own choice.

So, I would advise you to evaluate the entire market before deciding about the same.

MTL GROUP is a property management and financing company, operating in the Greater Montreal area in Quebec. Our professionals are just a phone call away to assist you with your property management and financing needs.

Whether you are a property manager or landlord, finding the right tenant is overwhelming for everyone. While being able to find a suitable tenant is a significant achievement. The initial efforts you invest in screening the right candidate helps you go a long way. When you have the right tenant, you don’t have to run behind for rent, fixing property damage now, and then handling major disputes and complaints. As such, there are ample benefits that come with a comprehensive tenant screening.

Having a thorough screening plan enables you to find good candidates without wasting your time and effort. If you are looking for some guidance on tenant screening, this is the post you ought to read. This guide covers tried and tested tips on tenant screening that aid you reach out to authentic candidates.

Highlight Your Criteria in Your Listing

The first step to tenant screening is elimination. Filter out the pool of individuals who do not meet your desired renting preferences. And you can do this easily by incorporating detailed information in your listing. Include a line in your vacant property listing that every applicant needs to undergo a screening process. In addition to this, also include lifestyle items, for example – 

• Pet policy
• Smoking Policy
• Rent to income ratio standard

Doing so will help you filter out wrong suitors for your property easily. 

Plan a Face to Face Meeting

When considering a candidate for screening, go and meet him/her in person. A face-to-face meeting will convey a lot about a person otherwise impossible to be revealed through a phone call. Before getting into any paperwork, ask them basic questions and verify their responses.

General questions that you may consider asking:-

• What’s your monthly income?
• When are you planning to move in?
• Will you have regular parties at the place?
• How many people will live with you in the apartment?

Since you will deal with each other for the long term, it is mutually beneficial to have a face to face meeting to foster a good relationship.

Conduct a Background Check

A background check is a must for tenant screening as you are likely to deal with the person for years to come. The person you choose as a tenant should have a clean criminal background and credit history. Moreover, the interested renter should abide by your proposed renting policies. If a person has red flags, they may not consider applying if you mention the background check. A thorough background check will protect you, your property, neighbours, and your other tenants.

Contact References

To look into the entire rental history of an applicant, speak to their current and former landlords. This will provide you with a better idea of your applicant’s character. Ask them if the person paid rent on time or not, followed the terms of the lease, or took care of the property. Having a word with rental references is the best way to know your potential tenant’s past behaviour. 

Bonus Tip

Hire a good property management company.

Tenant screening is one of the most critical and time-consuming tasks in rental dynamics. Finding good tenants leads to long-term occupancy and less headache of maintenance and rent collection. A good property management company will ensure that your property is occupied faster with good tenants to generate steady revenue. It will also make sure that your property value appreciates more year-on-year, beating the average growth.

MTL GROUP is a property management and financing company, operating in the Greater Montreal area in Quebec. Our professionals are just a phone call away to assist you with your property management and financing needs.