Many people look into renting out their properties (and subsequently becoming landlords) to supplement their income. But being a landlord may not be as easy as you think.
In a recent segment on BNN's House Money, Senior Analyst Don R. Campbell joined host Greg Bonnell to discuss common misconceptions and mistakes first-time landlords can make, and to share his five unconventional tips for successful landlording:
1. Don't treat it like a passive investment
Being a landlord is not about sitting back and just collecting the money, it's a very involved job. You'll get yourself in trouble treating it like a passive investment, missing out on reading markets and potential income.
2. Treat your tenants like your customers
If you have a tenant who pays you $1,000 a month, that's a $12,000 customer - one you want to treat well!
3. Maintain your property
Even if you have great tenants, there will always be regular wear-and-tear. Trim the trees around the property, say no to shag carpet and keep everything clean, functional and updated. Not only does this help retain your tenants, it keeps the value of the property up.
4. Take well-staged photos of your property
Close that toilet lid!
5. Pay attention to "street-rents"
Like any product, prices fluctuate with supply and demand. It's your responsibility to go online and see what your competition is renting for - right now - because it will fluctuate.
For more details about each of these important landlording strategies, and to find out whether you should really let your tenants paint that back bedroom purple, watch the full video here.