How to Become a Landlord in Ontario

Fixing problems, collecting rent and playing peacemaker—those are just a few of the job duties of a landlord. Being accountable for money and mayhem can be more than you bargained for but don't get discouraged. You can do it; just follow these steps.

Instructions

1. Buy an apartment building. You have many choices since Ontario is so massive that it holds almost a dozen counties. Try to obtain the building when the real estate market is at a low. Mortgage to own if you must. The rent that you collect from tenants should be more than enough to cover the cost of the mortgage until it is paid off.

2. Create a business plan for the building. Whether in Central Ontario or Brant County, your business plan requirements are the same. A landlord needs to have a clear plan in mind when it comes to his building. If you are merely going to be making the mortgage for the first three years until it is clearly paid, you need to think of alternative income sources during that time. If you are going to own the building as a tax write-off, long-term investment or other purpose, address this in your business plan. Be very clear on your desires for the building. Write down an actionable plan that anticipates the unexpected.

3. Move into the building if possible. If you prefer to live elsewhere, you'll need to make sure each and every tenant has easy access to your contact information. If there is a leak, malfunction or neighbor problem, you will need to come and fix it (or hire someone promptly who will). If you are unwilling to do these things, you'll need to hire someone to do landlord duties for you.

4. Have the fire department inspect the building before you allow any tenants to move in. Get the elevator inspected by the city. Double check that all the paperwork is in place. You could be in serious trouble if all health and safety codes are not followed or some preventative measures are not taken prior to allowing residents to move into your building.

5. Set rent at a reasonable price. Do a bit of comparison shopping for similar buildings in your area--and areas like your own. Set your price in the mid-range, leaving room for negotiation. You can always go slightly lower if you see a tenant you'd like to have move in. Setting it too low leaves no room for negotiation, and setting it too high can scare off great tenants.

6. Be firm about when rent needs to be paid. You don't want to be scary or intimidating in reminding a tenant to pay rent. However, you don't want to put either of you in the awkward situation of eviction. If you work with your tenant in a positive but firm manner, he will respect you and pay on time when possible.

7. Establish a friendly business relationship with your tenants. You cannot cross the line and become a close friend. You can genuinely care for your tenants (and should). However, crossing a line of friendship allows for one party to use the other in an unprofessional manner. Keep things light, friendly and kind, but avoid "hanging out" with tenants during your down time.

Tips & Warnings

• Read books on how to effectively deal with people prior to becoming a landlord. "How to Win Friends and Influence People" is an oldie, but it's a tried and true classic when it comes to relating to others.

• Don't let people step all over you. Do what you think is fair and ethical, but you are not there to serve your tenants' every whim. You are there to create a safe, efficient and productive living environment for your tenants.