The province of Ontario, Canada, with its bustling cities, beautiful landscapes, and strong economy, has become an attractive destination for residents and investors alike. As a result, there is a growing demand for rental properties in the province, and especially in the country’s capital. If you own a house in Ottawa and want some help renting it out, you’re reading the right blog!
However, before you list your property on any rental platforms, you need to ensure that it’s ready and that you are prepared to become a landlord. Continue reading below to learn nine of our tips for renting out your Ottawa property.
1. Know the Legal Requirements and Regulations
Understanding the Residential Tenancies Act
In Ontario, the Residential Tenancies Act governs the landlord-tenant relationship. It covers various aspects of renting a residential property, including the rights and responsibilities of both landlords and tenants. Researching these laws should be your first step on your property rental journey.
Here are a few examples of provisions within the Residential Tenancies Act in Ontario:
- Rent Increases: The Act regulates how much and how often landlords can increase rent. In most cases, landlords can only increase rent once every 12 months and must provide tenants with at least 90 days written notice before the increase takes effect.
- Security Deposits: In Ontario, landlords are not allowed to collect a security deposit from tenants. However, they can collect a rent deposit, which must not exceed one month's rent. This may only be used to cover rent for the tenant’s final month.
Licensing and Permits
To rent out property in Ottawa, you will need to apply for a host permit issued by the city, which comes with a $110 fee and is good for two years.
2. Perform Necessary Property Maintenance and Upgrades
- Repairs and Renovations: Ensure that your property is in good condition. Address any necessary repairs or maintenance tasks to make the space safe and comfortable for tenants.
- Safety and Code Compliance: Stay up to date with building codes and safety regulations. Ensure that your property meets all the necessary safety standards.
- Upgrades: Perform upgrades as needed to increase the value of your property. Make sure to do your market research and find out which upgrades potential renters would appreciate the most.
3. Set the Right Rental Price
Research the Market: Look at comparable rental properties in your area to determine a competitive rent price. Consider factors like location, size, and amenities.
- Calculate Expenses and Potential Income: Consider your monthly expenses, including mortgage payments, property taxes, insurance, and maintenance costs. Your rental income should cover these expenses while ideally leaving room for profit.
4. Create an Appealing Listing
High-Quality Photos and Descriptions: Invest in professional photos that showcase your property's best features. Write a compelling description that highlights what makes your place unique.
- Highlighting Unique Features: If your property has standout features like a beautiful garden, modern appliances, or proximity to amenities, make sure to mention them in your listing.
5. Use Proper Advertising Channels
- Online Rental Platforms and Websites: List your property on popular rental websites and platforms to reach a wider audience. Utilize social media platforms to expand your reach.
- Social Media Groups and Local Communities: Join local social media groups and community boards to promote your rental property. Word of mouth can be a powerful marketing tool, and it costs nothing.
6. Screen Potential Tenants Carefully
- Tenant Application Forms: Create a comprehensive tenant application form to gather essential information, including employment history and references.
- Background and Credit Checks: Conduct background and credit checks to assess potential tenants' financial stability and rental history. This step is critical to finding reliable tenants.
7. Create a Well-Drafted Lease Agreement
- Include All Important Provisions and Clauses: Ensure you have a well-crafted lease agreement that outlines all terms and conditions of the rental. This document should clearly define the rent amount, payment schedule, lease duration, and any specific rules or restrictions.
- Ensure Renters Understand the Terms Before Signing: Spend time discussing the terms of the lease with renters and address any questions or concerns to leave no room for confusion.
8. Get Sufficient Insurance Coverage
- Landlord Insurance: Consider purchasing landlord insurance to protect your property from potential damages and liability issues.
- Tenant Insurance: Encourage your tenants to obtain tenant insurance, which can ensure security for their personal belongings and liability.
9. Work with a Reliable Property Management Company
- Prevent Potential Legal Issues: An experienced property manager knows the ins and outs of renting a property in Ottawa. This helps to prevent any legal issues. On top of that, property managers ensure that you get the most out of your investment by setting the right price and finding the best tenants for your property.
- Save Time and Effort: Being a landlord can be overwhelming, and a lot of the time, it can cause plenty of stress. If you want to save time and avoid unnecessary headaches that often come with managing a rental property, working with a reputable property manager can do the trick.
How to Build a Good Landlord-Tenant Relationship
Building a good relationship with tenants is crucial for a successful and harmonious landlord-tenant dynamic. Here are five tips to help you achieve this:
- Effective Communication Is Key: Open and clear communication is the foundation of a positive landlord-tenant relationship. Give tenants a space to communicate, and respond promptly to any questions, comments or concerns while keeping tenants informed about any changes or property-related matters.
- Be Respectful and Professional: Maintain a friendly but professional demeanor, even when dealing with challenges or conflicts. Respect their privacy and adhere to the terms of the lease agreement.
- Respect Privacy and Boundaries: Provide proper notice before entering the rental unit, whether for inspections, repairs, or other legitimate reasons. Honouring their privacy rights fosters a sense of security and respect in the relationship.
- Timely Maintenance and Repairs: A well-maintained property not only ensures tenant comfort but also demonstrates your commitment to their well-being. Neglecting repairs can lead to frustration and damage the landlord-tenant relationship.
Renting out your house in Ottawa can be a lucrative venture that provides a source of passive income. However, it also comes with responsibilities and legal obligations that should not be taken lightly.
If you are uncertain, it’s best to hire a professional property manager to navigate this process for you. Rent in Ottawa Property Management is here to help you maximize your income while reducing your workload. Call us today and enjoy a stress-free rental business!