Are you renting a house for the first time? It’s normal to be apprehensive. After all, landlords and tenants both experience stress when moving. As a new landlord, you must familiarize yourself with the legalities involved in leasing a home. There are numerous things to remember; therefore, it’s a good idea to use a first-time landlord checklist.
Being a landlord is a secure investment with numerous advantages. You can earn passive income and build wealth for retirement.
Here’s a list of everything you should know before renting a home for the first time, along with solutions to common property management questions as a novice landlord, to help you make the most of it.
1. 🔍 Inspections and Safety Precautions
The safety of your tenant is, first and foremost, a top priority. Regularly inspect the property to ensure everything is up to code and safe for your tenant.
Checklist:
- Building infrastructure (walls, roofs, stairs, floors)
- Communal facilities (stairwells and hallways)
- Elevators, plumbing, electrical, ventilation, and HVAC systems
- Heating systems using hot water
- Check for rodent or vermin infestations
- Ensure no environmental hazards like lead or asbestos
2. 🛠️ Restoring the Property
Fix any out-of-code issues discovered during your inspection. Ensure all elements, such as plumbing, cupboards, windows, doors, and lighting, are functioning properly. Replace any broken door locks or window hinges and ensure all utilities are operational.
3. 📝 The Lease Agreement
Create a comprehensive lease agreement that includes:
- Names of all parties (landlord and tenant)
- Agreement duration
- Rent amount and collection method
- Security deposit and additional charge conditions
- Ban on unlawful activities
- Maintenance agreement
- Responsibility for property damage and pet policies
- Entry rights for landlords
Have a legal professional review the agreement, then go over it with the tenant before signing.
4. 💵 First and Last
Collect the security deposit and first month’s rent before the tenant moves in. Ensure you understand any legal exceptions for rent collection, such as government assistance programs.
5. 🔒 Change the Locks
Change the locks after previous tenants have moved out to ensure the safety of your new tenant and your property.
6. 📝 Move-in Confirmation Checklist
Discuss the move-in checklist with your tenant when they move in. This checklist documents the condition of the rental unit at entry and exit, ensuring both parties agree on the property’s condition.
Move-in Checklist Includes:
- Tenant’s name, address, and apartment number
- Start and expiration dates of the lease
- Results of move-in and move-out inspections
- Condition of each room in the apartment
- Confirmation that safety equipment is operational
Both you and the tenant need to sign the checklist.
7. 🤝 Consider Property Management
If you own multiple units or properties, consider our hassle-free, expert management services. We handle everything from finding trustworthy tenants to managing maintenance issues. Our qualified property managers have years of real estate expertise and understand the unique servicing needs of Toronto investment properties.
Enhance profitability and tenant satisfaction with professional management. Expert management makes all the difference.