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Basics of Landlording: A Guide for Canadian Real Estate Investors

Welcome to Week 3 of our series on real estate investing in Canada powered by XLNTLY. This week, we'll focus on the basics of landlording. If you own or are considering investing in rental properties, mastering landlording fundamentals is crucial for your investment's success.

What Makes a Good Landlord?

The basics of landlording involve a range of responsibilities from tenant screening to property management and legal compliance. Understanding the fundamentals is key to maximizing rental yields and maintaining a profitable real estate portfolio.

Tenant Screening

One of the first steps in effective landlording is tenant screening. A comprehensive tenant check should include:

  • Credit checks
  • Employment verification
  • References from previous landlords

Legal Compliance

Staying within the law is non-negotiable for landlords. You'll need to be familiar with:

  • Tenancy laws
  • Fair housing regulations
  • Security deposit rules

Property Management

Successful landlording involves active property management. This includes:

  • Regular property inspections
  • Timely repairs and maintenance
  • Effective communication with tenants

Lease Agreements

Drafting a comprehensive lease agreement is essential for safeguarding both the landlord and the tenant. Make sure the contract outlines:

  • Rent amount and due date
  • Lease term
  • Responsibilities for repairs and maintenance

Financial Planning

Landlording isn't just about collecting rent; it's also about financial management. Keep track of:

  • Rental income
  • Operating expenses
  • Taxes

Rental Yields

To gauge the success of your rental property, you should measure the rental yield, calculated as:

Rental Yield=(Property ValueAnnual Rental Income​)×100

Landlording Basics TL;DR

Being a landlord is a significant responsibility but can be rewarding if managed well. From tenant screening to financial planning, understanding the basics of landlording is crucial for maximizing your investment's potential.

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