Buying a Rental Property in Kits – What’s Involved

This post is part of our Home Selling Information Series.

Do Your Research

Before you do anything, become familiar with the landlord-tenant legislation rules and make sure your suite is legal. Research your local municipal bylaws, including guidelines and standards for fire and building safety. Additionally, municipal bylaws cover issues like zoning and permits. The Canada Housing Mortgage and Housing Corp. has a useful website with a number of helpful links.

 

Required Renovations

Renting a suite, especially a basement suite, might require you to roll up your sleeves and put in some work. For your basement to become a rental space, it’ll need additional insulation, carpeting, wiring, a kitchen and a bathroom.

 

Finding Tenants

Once you’ve done with the nitty-gritty work and have transformed your once empty basement into a lovely livable space, you’ll need to find tenants. So, you’ll need to advertise. The best places to advertise are:

  • University or colleges; put flyers on student union buildings’ boards, in residences, and in the housing offices.
  • Newspaper classified ads, specifically the community section.
  • Online; Craigslist, Rent BC, Places 4 Students, ESLRENT.com, My Ideal Home rentals, rentseeker.com, www.kijiji.ca

 

What to advertise

  • Location: Students will be looking for suite close to campus and in walking distance of public transit.
  • Amenities: Everyone will want a suite that is bright, clean, in great shape, and offers amenities like wireless internet, cable television, laundry facilities, parking and even furnishings.

 

Once you have a tenant

  • Inform your home insurance company:

If something such as a fire were to happen, the insurance company could say they were not informed of the tenant and that the policy is voided.

  • Income tax increase:
    Having a rental suite means you’ll have to claim that rental income on your tax return. Plus, a portion of the capital gain when selling could be deemed taxable.
  • Conflicts with your tenant:
    Be sure to get references from your tenant and check their employment history. Be sure to create a list of rules, following landlord-renter legislation, to include with your rental agreement. These rules could include noise curfews, yard restrictions, etc.

For more information about buying a rental property, call Ben at 604-222-2262.

Looking for more resources and information on selling your Kitsilano home? Check out the posts below: