How to Rent your Investment Unit in Kitsilano
So you bought an investment property, or house with a mortgage helper.. now what? Time to rent that out to start recouping some of your funds! Most detached houses in Vancouver these days have rental suites in order to help with the high cost of the mortgage. This gives the owners flexibility in paying their mortgage off faster, and using the suite for their own purposes when their family grows and needs more room. Looking at the condo market in Kitsilano, many units are investment properties for the owners, with the unit being purchased strictly for rental purposes, giving the owner a chance to earn some profit if the rental rate can cover the mortgage and strata fees.
Thanks to Kitsilano’s great location, your rental unit will be desired by University students and adults looking to live in one of the best neighbourhoods in Vancouver. The closer you are to amenities in the Kitsilano (including Kits Beach, bus routes, 4th Ave and Broadway), the more money you can ask for in rent. The same can be applied to the unit – if it is above ground, has in suite, laundry, has a good sized kitchen and living space and new finishings, you’ll be able to ask for more rent than units that don’t have these things.
Renting suites in Vancouver is a very common practice, you’ll just have to decide which route you want to take. That is, do you want to be the landlord interacting with the tenant, or do you want to hire a property manager to handle everything?
Being the Landlord:
For most people who own a Kitsilano home with a basement or ground level suite, they choose to be their own landlord when renting out their suite. However, you can also be your own landlord if your investment property is separate from your suite. The benefits are you’re in close proximity to your tenants when issues arise, and the property for when it needs repairs, you don’t have to pay the property management fees and if your family grows and you need the space, you can stop renting and use the suite for extra space
Craigslist is your best bet for advertising your rental – take a look on Craigslist to see what comparable properties are asking for in rent Just like in selling your home, good photos make a big difference when it comes to the renting your property quickly and to good tenants. Asking for references is a good idea, as is asking the tenant to sign a one year lease. Many landlords also ask for a pet deposit to cover any damage that pets may cause.
Some of the downsides include taking the time to advertise and show the property, handling all the tenants’ complaints and needed repairs, collecting rents and deposits, and taking the time to learn the Residential Tenancy Act which includes rules you’ll need to follow as the landlord.
Hiring a Property Manager:
Most property management companies handle the entire process, including all communication with the tenants. We at LiveKitsilano highly recommend Vancouver Real Properties for all your rental needs. They will offer a rental assessment – letting you know what your property is worth, advertising of your property, collection of rent and deposits, inspections to ensure the property has been well maintained, handling of tenant requests and complaints, dealing with the Strata Corporation (if necessary), hiring trades people to fix any maintenance issues. Typically, property management companies collect and deposit rent, then send you the remainder once docking their fees. Often, property managers fees are about 10% of monthly rent.
Ensure that the property manager follows the Residential Tenancy Act in all their dealings with the property and tenants. Feel free to interview multiple property managers to ensure you’re comfortable with them and how they work.