Selling your home and buying a new one is the most common path when it’s time for a move. However, it’s far from the only option.

Some people prefer to keep the existing home in the family, either for emotional or financial reasons. Real estate can be one of the most effective vehicles for long-lasting generational wealth, and renting out your house instead of selling is a viable way to hold onto your most valuable asset.

In this post, we’ll answer some of your most pressing questions about owning a rental property.

Do you want to stay current with unique insights into Pickering real estate? Tune into our informative yet entertaining podcast right here.

Can You Rent Out Your Primary Residence?

Let’s start with a quick introduction to real estate investing in Canada. In Ontario, the Residential Tenancies Act governs the relationship between landlords and tenants. It’s no secret that the rules lean heavily in favour of tenants, which creates several challenges when renting out your house in Ontario.

However, there is no reason to avoid turning your primary residence into an income property when you have a well-thought-out strategy and knowledgeable experts at your side.

Do you want to know more about real estate investing? Check out these other resources from our investor series:

• Long-Term Versus Short-Term Rentals: How They’re Different
• How Can Secondary Suites Affect Pickering Real Estate?
• Is Buying an Assignment Sale in Pickering a Good Idea?

How to Rent Out a House

There are several options when renting out your primary residence.

• If you have an unused bedroom in your home, you could take in a roommate. While not everyone loves the idea of someone living in their space, this option does have its advantages. It’s the most straightforward way to earn income from your existing home. Plus, roommates aren’t covered by the Landlord Tenant Board, making them easier to evict if the situation isn’t working as planned.
• You could create a secondary suite in your existing home. If you wish to stay in your home and prefer not to share your living space, this can be the ideal solution. Suites with a separate kitchen, bathroom, and bedroom are under the umbrella of the LTB, which means guidelines are more strict. However, you do have the benefit of extra privacy since each unit is self-contained.
• Renting out your entire primary residence and living elsewhere can be the most profitable option. This gives you the chance to earn more monthly income, which helps to cover the costs of your new home.

Regardless of which path you choose, the right tenant makes all the difference. Contrary to what you may have heard, most tenants are excellent and can make owning and managing your investment property profitable and relatively stress-free. However, there are always a few bad apples in the mix, and you need a strategy to weed them out.

Thinking about buying a second home and renting out the first? The posts below can give you some valuable insight:

• How NOT To Buy a House
• Inside the Hunt for a House in the GTA
• What to Consider When Buying a Pickering Home

Due Diligence When Renting a House

One of the first things a homeowner will often do when searching for a tenant is to advertise on Facebook Marketplace or Kijjijji. While this could be a fast way to get a lot of leads, you won’t necessarily get the best leads.

A quality tenant is essential. Unfortunately, a few bad players will take advantage of the rules that are in their favour. Once they are in, getting them out can be stressful and expensive. In the meantime, you still have to abide by all of your responsibilities as a landlord.

It’s critical to understand that there will always be some element of risk if you decide to rent out your house – as with anything else in life. No matter how thorough you are, it is possible to do everything right and still see a faulty tenant slip through the cracks. A high level of due diligence significantly minimizes the risk, but doesn’t eliminate it altogether.

What to Look for in a Tenant

Good tenants aren’t always easy to spot, but they do leave clues. You can begin to form a picture of what renting your home will be like by checking their employment history and asking for a credit check.

• A dream tenant is one who loves your home like you do and takes meticulous care of the property. At the very least, you want someone who won’t cause any damage.
• They should also be capable of living peacefully with the neighbours and any other tenants who may be in the building.
• Ideally, they’ll stay for a long time, saving you from going through the tenant-finding process again.
• Most importantly, they’ll pay their rent on time, every time, and without having to chase them.

Should you sell your home instead? If that’s your path, the posts below will help you get results:

• What Are the Secrets of Selling for Top Dollar in Pickering?
• What Not to Fix or Renovate Before Selling a House
• How NOT to Sell a House

An Unlikely Resource for Real Estate Investing

Knowing what you’re looking for is a positive step. The next task is figuring out how to find it. With a systematic approach, you are far more likely to succeed in your investment journey. However, you should never try to go it alone.

It may surprise you that a real estate agent could be a valuable resource when you plan to rent out your home, not just when you’re buying or selling. This includes helping you find, vet, and manage tenants who will be a good fit for your property.

For example, our 18-step system evaluates candidates from all angles to determine the best possible match for your home. We even have a property management company that can step in if you prefer a hands-off and worry-free experience. At Team Rajpal, we strive to be your one stop shop for everything real estate related, while providing an elevated level of service for everything you need for a positive outcome.

Do you have more questions about selling or renting out your home? Our Pickering real estate agents are happy to help you make the most of your sale. Reach out today at info@teamrajpal.com or call 647-875-8000 to learn more.

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