Before You Buy - Practical Issues

If you are thinking of becoming a landlord, there are many practical things you need to consider. Choices that you make may have legal implications.

Some practical issues might include:

• What kind of property are you considering?  For example: 
• Self-contained suite in a house
• Suite in a condominium building
• A house 
• A house where you plan to live and rent out a room to a tenant
• If the tenant has roommate(s), how will rent be collected?
• How will you rent out the property? Month to month? Six months? A year?
• Will a security deposit be required?
• How much rent will you charge?
• Are there any hidden costs that you need to consider? For example, cleaning the property before the tenant moves in, repairing damage?
• Who will be responsible for paying utilities?
• Will you allow pets?
• Will you limit the property to adults only?
• Do you need to take any safety precautions before a tenant can move in? For example, installation of security locks, alarm, or smoke detectors?
• Is the location of the property convenient for you?
• Will the property be smoke free?
• Will you furnish the property?
• What kind of appliances will you provide?
• Are there laundry facilities?
• What kind of insurance will you need?
• Will there be an application process? Will you require personal preferences and credit checks from the tenant before you allow a tenant to rent?
• Will a deposit be required to hold the premises? Will it be refundable?
• When is the first rent payment due?

November 2010