Becoming a Landlord In Alberta | Everything You Need To Know

The global wide pandemic that we have been experiencing the past several months has brought with it many changes. Lots of those changes are directly related to real estate and the market. People are needing to sell homes, relocate for new jobs and the decrease in housing costs has even sparked some interest in new home buyers or those wanting to buy a second property.

If you are part of those who are considering a second property to then rent out, there are things that you need to consider before taking the leap into becoming a legal landlord in Alberta. Interested in learning more about it? Keep reading. 

The House You Choose Will Determine The Type Of Tenants You’ll Have

This might not be top of mind when you are deciding to buy a second home to rent out, but it should be the first thing you think about. What kind of tenants are you hoping to have in your home? A young couple? A few college students? Single occupant? A small family? Everything from the size, location and appearance of the house will play a huge role in what kind of tenants you can end up with. 

If you’re looking to have a young family with small children, then a house on a noisy street close to downtown and no yard is probably not ideal. If you’re wanting to rent out rooms to college students or perhaps oil field workers, then a more basic home with large common areas and adequate parking space would be best suited. So what’s the best way to find the proper house? Seek the help of a local realtor who knows the area. They can help you determine which direction you want to go, who you want living in your home and where to get the best deal for what you are looking for. They will also be able to give you a bit of insight into what the local rent is for the size/location that you choose. 

Know The Rules

Before you become a landlord in Alberta, you need to carefully read and understand your role, rules and responsibilities. On the flip-side, you need to have a solid understanding of the rights and responsibilities of your future tenants as well. It’s important for both you and your tenants to know their “jobs” in order for the relationship to work and run smoothly.

The following documents and resources are all extremely important to review before you bring in any tenants.  

• Residential Tenancy Act (RTA)
• Alberta Human Rights Act 
• Public Health Act
• Residential Tenancy Dispute Resolution Services
• Rental Agreements & Ending a Rental Agreement

Screen Possible Tenants

Renting out a home should be treated like running a business. For many people, it IS their business. Remember that they are moving into your home and you have a right to refuse to rent to someone. When screening possible tenants, you’ll want to learn things like their past renting experience (pay attention to how often they have changed rentals), gather references from work, past landlords and a few personal references as well. Meet with them in person and ask questions. 

It’s important to get to know a bit about someone before they move into your house and a walkthrough is the perfect time to do so. While you’re touring the home with them, ask appropriate questions and try to get a sense of who they are. If you don’t “jive” with that person right away, maybe they aren’t the right tenant for you. Be sure to run a credit check as well as this will give you a good indication of their capabilities to pay the rental amount you’re asking for. 

Don’t Forget The Small Details

Becoming a landlord in Alberta can be a fun and rewarding experience and even more so if you make sure all your bases are covered. Decide on a rental amount based on what your realtor suggested, what other landlords are charging and the local market. Get the proper insurance put on the home and be sure your insurance provider knows it’s being rented out. Collect a damage deposit and first month’s rent from your new tenants along with a signed rental agreement. Do not collect money without signatures and do not accept signed documents without payment. 

Ensure your tenant agreement clearly states the amount of rent due and on which days of the month and provide your tenant with a signed copy. If you’ll be allowing pets, collect a pet deposit if you wish and ensure there is a pet agreement as part of your paperwork. Decide if you will handle maintenance yourself or contract it out. These are all important factors in making the whole experience a good one. 
If you’ve decided that becoming a landlord in Alberta is right for you and you’re ready to take the first step in investing in a second rental property, the real estate team at CENTURY 21 Poirier is standing by and ready to help! We have all the needed information to find you a house that meets your needs both physically and financially. Now is the time to leap into owning a second home, so contact us today.