Landlord's Guide - British Columbia, Canada
Landlording can be a good way to make money and can provide you with a regular income as well as the potential for capital growth in the long run.
However, buying property which you then rent out is certainly not a get-rich-quick scheme. Be prepared to do a lot of research before you get started, or you could lose money and even lose your property very quickly.
At the beginning you will have to chose between managing your rental property yourself or using an agent or management company.
Hiring an agent will obviously reduce your rental income because of the commission charged and may not be within you budget. On the other hand, a good agent or management company could take on a lot of the work and stress associated with running a rental property. The disadvantages of using a property management company may include the following:
- High cost consuming from 10% to 25 % of your rental income.
- Advertising disadvantage since your unit will be competing with the large number of other units managed by the company.
- Occasional substandard services and avoidance of dealing with problems when they occur.
You should however consider hiring a management company if you live far away and cannot show the property or respond to tenant complaints yourself or if your rental income is sufficient to justify the cost of a management company.
If you decide to become a landlord and manage your rental property yourself, the following guide will help you identify some of the most common issues you may encounter while renting out a residential property in British Columbia, Canada.