How to Maintain a Rental Property as a Real Estate Investor

Owning a rental property is a lot of work and the responsibilities only get larger as the number of rental properties get bigger. Failing to understand the basic obligations that come with renting out properties can lead to potential legal and financial problems for the landlord. Just like the landlord has certain expectations from their tenants, such as paying rent on time, the tenants have certain expectations from their landlord. 

This is why I have created a short list that will look over the responsibilities related to the property itself, the safety as well  as the legal implications of renting a property!

Property Responsibilities

In a real estate investment portfolio, the most important assets are the rental properties themselves. That being said, it is both the landlord and the tenants best interest to keep the property habitable, free from defects and compliant with all property and health codes. This is also known in the world of real estate as “warranty of habitability”. 

Some of the primary responsibilities for a landlord related to the property itself are to perform all repairs in a timely manner to ensure the safety of the tenants, keep the home insurance policy up to date, to pay the mortgage on time and to pay the utilities in full each month in order to avoid disconnection of utilities such as heat or water. 

Some of the secondary responsibilities include updating the appliances and non-essential repairs such as replacing carpet with hard-wood floors. Hence, it is very important to keep the rental property as updated and repair-free as possible and to meet all property standards such as municipal bylaws and fire safety laws. 

 Safety Responsibilities

The responsibilities that the real estate investor owns in regards to safety are some of the most important when owning a rental property. The safety of the tenants should be a top priority. Thus, working smoke detectors and monoxide detectors should be placed around the house and tested on a regular basis. The locks on all doors and windows should be in good working order and replaced in a timely manner if broken or not working properly. If mold is ever discovered on the property, it must be cleaned and the affected area repaired as soon as possible. Outdoor areas must be kept safe by ensuring that there are no cracks or possibilities of things breaking down, such as the front steps or deck in the backyard. Finally, as mentioned previously, it is very important to meet all municipal and provincial bylaws in to ensure the safety of the tenants and neighbouring households. Keeping a safe and clean home also reflects who you are as a business, so keep that in mind!

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Legal Responsibilities

In order to avoid legal action to be taken against yourself, the landlord, it is very important to learn, understand and comply with all legal responsibilities that a landlord has when renting a property. Some of the most important and common legal responsibilities include the need to keep the home habitable and safe for the tenants. 

Furthermore, in most Canadian provinces, a 90-day notice must be given to the tenant before increasing the rent. Some provinces also regulate the maximum annual increase in rent. Landlords are also allowed to ask for a security deposit in all Canadian provinces, except for Quebec, where deposits are prohibited. In regards to the contract, it cannot be terminated by the landlord within the duration of the fixed-term lease except for specific causes such as illegal activity taking place on the rental property. Visit CMHC for more information in regards to legal responsibilities.

Once again, the landlord holds a legal responsibility to keep the rental property safe for its tenants. 

In short…

Real estate investors have many responsibilities when it comes to renting a property. That being said, the tenant’s safety must be kept as a top priority. Property, safety and legal responsibilities must be followed accordingly in order to avoid legal action and potential monetary losses for you, the landlord. If you are conscious about the three major responsibilities you have as a landlord, you will not only be avoiding possible conflicts, you will also be able to attract good tenants for your property from the start!

If you have any question or just want to chat, do not hesitate to send me a message!