What to Consider for Managing Your Toronto Rental Property
Do you own a property in the Greater Toronto Area that you want to rent out for extra income? You might be facing the question: do I want to become a landlord? Many people find being a landlord is stressful, time-consuming, and overwhelming. Many experienced landlords know that the solution to this is hiring a professional property management company. Property management companies are third parties that are hired to handle all of the daily operations of your real estate investment. Most property owners prefer turnkey property management, which means that the Property Management Company will handle the issues from start to finish. Turnkey operations can include advising on key tips to improve the property to gain higher rent or get the property leased faster, advertising, interviewing/screening potential tenants, handling lease agreements, collecting rent, and managing maintenance just to name a few benefits. There are many things to consider when hiring a property management company, let’s take a look at a few of them.
What to Look for When Hiring a Toronto Property Management Company
Investment properties in Toronto are booming! Rent prices have consistently been increasing allowing the Greater Toronto Area to be a great place to own a rental property. Asking yourself why? Toronto has been announced as the fastest-growing metropolitan in North America. Toronto is the main immigration hub for Canada and attracts over 100,000 newcomers each year, not including domestic migration. Most newcomers are looking at renting as the first option in their first few years. Being a landlord in Toronto can truly be a full-time job. The responsibilities of a landlord can be endless which is why hiring a rental management company can completely relieve the burden of these landlord responsibilities.
Due to COVID-19, the way that rental units are maintained is changing constantly. For example, some buildings do not allow for visitors to enter the building (even if you are the suite owner), in other cases, Tenants will not allow for either service or viewings to take place if a certain health protocol is carried. Recently the cost of rent in Toronto is decreasing but a property management company can help with this by finding tenants willing to pay top price for your rental property. Since many people have lost their jobs due to the coronavirus there are some that have issues paying rent but a property manager should be following up with tenants too, issue the proper legal notices, collect and deliver the money to the owner. No matter what the issue is, if you have a property management company maintaining your rental property, they can help!
Turnkey Landlord Services
Rental Management Companies can handle all of the responsibilities or just some of them depending on what you, the property owner wants. Some landlords may want to control some aspects of the rental property such as screening the tenants or you could want the property management company to handle all of the responsibilities. The more services you can obtain from the Property Management Company the easier communication and better customer service you should expect. Rental Management Companies should be able to assist you with finding the property, assisting with closing procedures, insurance, leasing maintenance, monthly daily communication, bank deposits, and keeping a good paper trail for your tax filing and organization.
Complete Management Service
If you ever decide to stop renting your property out and want to sell instead your property management company can help you handle the sale as well. They should include a Buy, Sell, and Lease service that allows clients to buy the property, lease the property, and sell the property all through the same company. DASH employs some of Toronto’s Top Licensed Realtors to help property owners sell their homes successfully. We outline your cash flow projection, financing options, estimate your closing costs, estimate your price, rental amount, and tax implications (HST, Capital Gains, and Withholding tax) whether you are a Canadian or an overseas investor.
Out of Country Investor
We provide full-service property management services for those overseas. If you are not living in Canada but want to own an investment property we can help you Buy, Sell, or Lease a property. Non-resident owners owe a 25% tax of any rent but at DASH we handle filing the NR6 form to help minimize any withholding taxes. Y We prioritize our client’s income.
Rating and Reviews
When looking for a Rental Property Management company in Toronto be sure to check their ratings and reviews. They will have reviews from both tenants and the property owners to determine how well they handle all of their properties.
Rental Property Repairs and Maintenance
When looking for a Property Management Company you will want to find one who handles all the repairs and maintenance of your rental unit. We use professional contractors to carry out any repairs in a timely manner and low cost. We handle all of the tenant’s maintenance tickets and complete the repairs with low operating costs.
If you have not purchased your rental property and need proper fiance advice we can help! We offer our lengthy experience, knowledge, and lenders contacts to help you find your perfect investment property.
If you are purchasing a newly built property you have to pay an HST T on top of the purchase price. Once you purchase the property you can qualify for the housing rebates. You could be entitled to the HST rebate up to $30,000 if your property for rental income. At DASH we have assisted owners obtaining millions of dollars in these rebates. We will help you throughout the GST/HST rebate process.
Maximize Rental Income
Another thing to look for in a Property Manager is if they can maximize your rental income. You want to rent your property for the most amount of money and a property manager can help you do that!
What to Avoid When Hiring a Property Manager
As discussed above, there are many benefits to hiring a property management company but there are a few things to look out for on your search as well.
Here at DASH Property Management in Toronto, we do NOT have any hidden fees for our rental management services. Our monthly Condo Management Fee is only 6% or a minimum of $95 a month. Our surrounding competitors require 8-10% every month. Our competitors also require set up and lease renewal fees which we do NOT! You will want to hire a Property Management Company that you can trust in, one that will never hide fees in your contract.
Although you may be just avoiding companies that have bad reviews you may also want to stay clear of property management companies that have no reputation. Putting your investment property in the hands of someone else can be scary but if it is in the hands of a company that has a great reputation around the GTA it will feel great.
Hire a Toronto Property Management Company
Hiring a Property Manager can take the stress of being a landlord off your back as well as utilize your investment property to its maximum potential. The decision to hire a property manager is a great one and you will want to find a company that you can put your trust in. Contact DASH today to get a free rental or property value quote so that we can help you expand your property wealth!