How to Rent Out Your House in Ottawa

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 to start earning rental income, you’re reading the right blog!

However, before you start renting out your house for the first time and collecting rent, you need to ensure that it’s ready and that you are prepared to become a landlord. Let go of any emotional attachment to the house, prepare for the hefty time commitment, and let's get started on the most important aspects of renting out your home so you can earn additional income.

Continue reading below to learn nine of our tips for first-time landlords in Ottawa.

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 local landlord-tenant laws should be your first step on your rental journey. Don't to collect any monthly rent payments until you're well-versed in your responsibilities to avoid legal issues.

Don't be the landlord that underestimates just how much time goes into staying legally compliant, or else you may manage to find yourself in a costly lawsuit.

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 residents 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 residents. 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 one unit or rental 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 rental property is in good condition. Address any necessary repair requests or tasks to make the space safe and comfortable for residents.
• 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 manage which upgrades potential renters would appreciate the most.

3. Set the Right Rental Price

• Research the Market: When you rent out your house, 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 and mortgage interest, 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 for success on the real estate market.

• 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 so your property stands out in the rental market.

5. Use Proper Advertising Channels

• Online Rental Platforms and Websites: List your rental home on popular rental websites, mobile apps, and platforms to reach a wider audience. Utilize social media platforms and digital tools to expand your reach.
• Social Media Groups and Local Communities: Join local social media groups and community boards to promote your house. Word of mouth can be a powerful marketing tool, and it costs nothing.

6. Screen Potential Tenants Carefully

• Resident Application Forms: Create a comprehensive resident application form and review process to determine essential information on new tenants, including employment history and references.
• Background and Credit Checks: Screen tenants by conducting background and credit checks to assess potential tenants' financial stability, credit scores, criminal history, and rental history. The tenant screening step is one of the most critical aspects of tenant management. Tenant screening makes sure that tenants pay rent on time, so you get paid on time. Smart property owners never skip the screening tenants step when house renting.

7. Create Well-Drafted Lease Agreements

• Include All Important Provisions and Clauses: Ensure you have a well-crafted lease agreement that outlines all terms and conditions of the rental for the prospective tenants. The lease agreement document should clearly define the rent amount, rent payment schedule and any late fees, lease duration, pet policies, and any specific rules or restrictions. Lease agreements should also be fully compliant with local laws to avoid legal issues.
• 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 A Sufficient Insurance Policy

• Landlord Insurance: When you rent out your house, consider purchasing a landlord insurance policy to protect your rental home from potential damages and liability issues.
• Tenant Insurance: Encourage your tenants to obtain tenant insurance, or renters insurance, which can ensure security for their personal belongings and liability.

9. Work with a Reliable Property Management Business

• Prevent Potential Legal Issues: An experienced property management team knows the ins and outs of property ownership and the rental market in Ottawa. This helps to manage any legal issues for property owners. On top of that, property managers ensure that you get the most out of your investment by setting the right price, finding the best tenants for your property, and applying relevant tax deductions to save your rental income.
• Save Time and Effort: Being a landlord can be overwhelming, time-consuming, and it can cause plenty of stress. If you want to save time and avoid unnecessary headaches that often come with property management, working with a reputable property manager can do the trick. A property manager oversees the property so homeowners don't have to, allowing landlords and rental property owners the time to refocus on what matters to them whilst they generate extra income.
• Property Maintenance: A property management business will leverage vendor connections to service your rental property, and often offers a convenient online portal featuring a maintenance tracking system, so it's easy to service and track maintenance requests from your tenants. Additionally, a property management company will routinely inspect your units for property damage and lease compliance, saving you time and money by addressing repairs early.

How to Build a Good Landlord and Tenant Relationship

Building a good relationship with tenants is crucial for a successful and harmonious landlord and 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 when you collect rent. 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.

Conclusion

Renting out your house in Ottawa can be a lucrative venture that provides a source of passive income for many homeowners turned landlords. Our blog post has given you a head start in the right direction so you can feel confident renting out your house for the first time and start to generate income. However, renting out your house 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 management company 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!