Many first-time landlords are often hesitant to take on property management duties and instead consider hiring a professional management company to handle them. 

While outsourcing property management duties may seem like an effective way to save time, it’s often unnecessary. In fact, managing an income property (and tenants) is not as labour-intensive as many investors may expect.

As a powerhouse real estate team in Toronto’s ever-shifting market and landlords ourselves, we’re exceptionally well-versed in property management. We believe firmly that first-time investors already have what it takes to ace their landlord duties.

By performing proper due diligence early on, incorporating strategic optimizations to the property, and planning thoughtfully, investors will be well set for a smooth, low-stress experience. Let’s take a closer look.   

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Holding Onto Your Returns

One of the primary advantages of taking on property management duties independently is that it allows you to retain a much larger portion of your earnings. 

As the owner of an income property, you’ll want to take every possible opportunity to maximize your return on investment. One of the easiest ways to do exactly that is by handling the management duties yourself.  

Professional property management companies are for-profit businesses, and their services can be fairly expensive. Although you’ll be earning money from your property, these costs can eat away at your returns fairly quickly.

Even if the costs seem negligible at a glance, keep in mind that there will be other short and long-term expenses that you’ll need to account for as a landlord, so it’s best to cut back on expenses whenever possible. 

Interested in purchasing a dedicated income property in Toronto? Consider these insightful readings from our site. 

Sourcing the Ideal Tenant

The foremost factor in creating a hands-off, automated income property is sourcing the perfect tenant. With this in mind, you’ll really want to be diligent in your screening process. Proper tenant screening does take time, however, it is well worth the effort invested. 

First, you’ll want to ensure that a potential tenant will have the financial means to afford your property. This step includes credit checks and employment and income verification. 

In addition to verifying potential tenants’ financial stability, screening should also include references from past or present landlords. These references will help you confirm that your top candidates will be mindful of their responsibilities, punctual with payments, and respectful of the property.

In a rapidly-growing city like Toronto, the pool of potential tenants is expectedly vast. The advantage of this volume is that investors can really take their time to find the best possible tenant. For a high-quality rental unit or property, it’s not out of the ordinary for landlords to receive interest from hundreds of candidates or applicants.

If you’ve done your due diligence in sourcing the best possible tenant, you can expect a fairly hands-off management experience. 

Choosing the Right Space

In addition to tenant management, being a landlord will entail property upkeep as well. With this in mind, reducing your long-term management duties (and costs) begins with thoughtfully choosing the right property upfront. 

For example, if you purchase an older property and don’t make any repairs or upgrades, you can expect to have more ongoing maintenance duties. 

Beyond the physical attributes of the property, there are other logistical factors to consider. For example, if you purchase an income property that’s a great distance away from where you live, you’ll have a longer commute when you need to handle certain tasks or duties. 

Crafting a high-return real estate investment begins with a strong financial foundation. For assistance in shaping your budget ahead of the market use our Buyer’s Calculators.  

Unwavering Guidance

Managing an income property independently doesn’t mean there won’t be help available when you need it. Whether you need assistance in sourcing and screening tenants, capitalizing on top-of-market rental rates, ROI-building property upgrades, advice on landlord and tenant rights, or anything else, Ramsay Real Estate Group can provide clear, actionable guidance to help you make the most of your investment. 

Regardless of where you are in your investment journey, we can guide you toward an efficient, streamlined, and cost-optimized venture. 

Looking for full-spectrum investment guidance? Ramsay Group can help. Click here to contact us by email or call 416.906.8366 to begin your bespoke buying journey.

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