Owning rental property is
a great concept for building wealth, but requires a lot of hard work,
patience and planning.
Getting Started As A Landlord
The Good, The Bad, and The
in real estate can be far more lucrative and rewarding than other forms of
investments, but before deciding if this is a career you’d like to get
involved in, you should read about the good, the bad and the ugly parts of
real estate investing and being a landlord.
► The Good
part of investing in rental property is that someone else is paying off
your mortgage. Couple that with the cash you should be earning every
month after the expenses are paid and it's no wonder that over 90% of
millionaires have made their money in real estate.
► The Bad
rental property can be a lot of work. It takes patience, planning
ability to deal with many different personality types. Every time a
rental property becomes vacant, you have to find a new Tenant. This
alone can be a huge headache. Your phone will ring off the hook, and
you'll be steadily replying to email inquiries. You have to do
showings, background and reference checks, and you'll question if you're
being told the truth. Even after you find a good Tenant, you could
still have problems. They could lose their job, then start a trend
in paying rent late; there could be relationship break-ups, roommates
moving out, etc... Plus, you could have issues with your property
such as plugged drains, leaking fridges, and so on. You get the
isn't this way but it could be. Sometimes you'll encounter a string
of bad luck. And speaking of bad luck...
► The Ugly
Occasionally, being a Landlord means living in a nightmare . . . while
you're awake. There are Tenants who will destroy your property, fit of
family of 10 in a two bedroom condo, or not pay rent at all. They
will flush cat litter down your toilet and leave you with all the repair
costs. That is why it is so very important to study and know the
laws that apply to renting in BC, and your rights as a Landlord. You
must make sure you do everything in accordance with the law, and when
you're unsure, call or email the BC Landlord Tenancy Branch. Don't
assume that by getting a Tenant to sign something, that it is legal.
The Residential Tenancy Act and Regulations will trump whatever you and a
Tenant agree to that is outside of the law. Make sure you document
everything. This is very important if and when you go to
arbitration. You WILL live through your nightmare and come out okay
in the end...with a good story and a good lesson. Doing your
due diligence when renting out your
property is of utmost importance. Never forget that.
SMART LANDLORD TIP
Landlord is an educated one; one who knows the rights of their Tenant and
MORE ON GETTING STARTED