How to Make the Most of Your Rental Property
If you’ve been following the latest in real estate news in the City of Toronto, you will know that the rental market is hot! Average rental prices continue to rise and with that comes incredible investment opportunities. Whether you’re considering dipping your toe into the world of property investment and management or simply hoping to make the most of the current climate with properties you may already own, there are a few factors worth considering.
When it comes to property investment, we are incredibly spoiled for choice in Toronto. As long as you stay within highly sought-after neighbourhoods that are desirable due to their proximity to transit, schools, shops and the like, you’re almost always guaranteed a good return on your investment. Then, once you’ve ticked the location box, it’s a matter of deciding the type of property you’re after. Depending on the neighbourhood, you could be looking at condos, townhomes, single family homes, semis, detached homes or even multiplex buildings. With the help of one of our partners from The Penzo Team, the process of leasing out any of these types of properties is fairly straightforward. But if it’s a matter of purchasing a property that requires some updates or is a multi-unit or mixed-use building, that’s when our team steps in to lend our real estate partners a hand. Every type of home comes with its own set of advantages and requirements that need to be met in order to make it appealing, safe and above board for tenancy.
To put it simply, there is no question that renovated rentals command a higher rate. Putting capital towards improving the property can increase your rental return by upward of 20%. When designing these spaces, alongside our partners at Homekin, we like to keep our eye on the prize. It’s important to first consider the neighbourhood in which the rental is located, as different areas will attract tenants of various demographics. You want to ensure that the aesthetic, quality and layout are aligned with the needs of the lifestyle of a likely tenant. In general, consider designs that have a wide appeal, such as light colours and neutral tones that are particularly popular. This gives residents the opportunity to make the space their own with furnishings and decor.
For example, in a recent project for a rental property in Moore Park, we installed beautiful white oak hardwood flooring and installed oriental white foyer tile and marble in the bathrooms. Plumbing fixtures were also updated in a custom kitchen with brass hardware and new sleek appliances. To finish, a fresh coat of paint was applied along with the installation of exquisite light fixtures. The combination of all these fine details commands high-quality tenants.
While single-family homes and condos tend to be fairly straightforward, multi-unit buildings, tend to require a bit more work and consideration from a construction perspective. Each new unit must be independently fireproofed and soundproofed. If the building in question is higher than 3 stories, it will also require a sprinkler system and each unit must have a legal egress for exiting the building in an emergency situation. If space and design allow, it’s worthwhile to consider planning for independent amenities for each unit. With extensive experience in this space, we can not only explore what needs to be done for immediate returns on your investment but also explore possibilities for future development down the road.
Whether you’re seeking guidance to purchase the right rental property for you or simply want to make the most of a property you may already own, contact us to book a consultation!
