Things to consider when purchasing a rental property:

1. Does a purchase make financial sense?

• A minimum of a 20% down payment is required when purchasing a rental property.
• Investing in a rental property should be considered a long-term investment that helps build capital.
• Consider whether your real estate investment has the potential to provide a better return when compared with other investments.
• You will have to pay land transfer tax – this is paid by the buyer when possession of the property is taken.
• When you sell your rental property, you will have to pay capital gains taxes.
• The First Time Home Buyers’ Plan and land transfer tax rebate for first time home buyers can only be applied to your primary residence.

2. How is the local rental/job market?

• The number of rental properties for sale in a neighbourhood can impact the price you’ll pay.
• A healthy and growing job market will likely spur demand for housing and may result in rising rental income.
• A growing area with major improvement projects planned (like a mixed-use retail residential development, subway stop or health clinic) could make the location more attractive to potential renters

3. Landlord Duties

• Landlords are legally obliged to ensure that a rental unit complies with the rules and regulations pertaining to minimum standards for:
• Before renting a property, it must meet municipal standards, zoning bylaws, fire safety regulations, and local building codes.
• You may need to obtain a rental license, which is required for any rental property with four units of less.
• Landlords are legally obliged to ensure that a rental unit complies with the rules and regulations pertaining to minimum standards for:

1. Maintenance
2. Housing
3. Health & Safety

• It is also the landlord’s responsibility to ensure that acceptable standards are maintained through the duration of the tenancy. This includes:

1. Maintaining the state of the home and ensure it is fit for inhabitation.
2. Ensuring a reasonable supply of fuel, electricity, hot and cold water and other utility services – unless the tenant has agreed to pay for these services.
3. Not interfere with the reasonable enjoyment of the premises.
4. Not seize, without legal process, a tenant’s property for rent default or for the break of any other obligation of the tenant.
5. Not harass, obstruct, coerce, threaten or interfere with the tenant.