Buying a Rental Property in Calgary

Do you plan to purchase a rental property in Calgary in the near future? There are three common mistakes investors make or overlook when they buy a rental property. It's good to know what these things are before purchasing anything.

You have probably heard the term, location, location, location. According to some experts, those are the three most important things to consider: location, location, location. True enough, location is crucial to be in the position to win in these 3 important matters;

Cash Flow

Cash flow is so important when it comes to having a rental property. It is impossible to pay your bills and pocket any money if you lack cash flow.

Be sure to review the numbers first when you are on the lookout for a property! Ask the seller to provide you with all the information you need to create a spreadsheet to evaluate the performance of the rental property.

We at Chamberlain Real Estate Group use a template to analyze a property's value and determine if an investment is worthwhile. This is how Jared Chamberlain has grown his rental business for the past 14 years.

We can analyze the numbers you have for the acquisition of a property to ensure you will have a solid cash flow after acquiring it if you're working with one of our agents.

Consider Possible Multiple Streams of Income

Multiple streams of income means several people are paying for different portions of your property. Suppose you own a house with a basement suite and garage. By renting out the main house, the basement suite, and the garage separately, you can earn three different streams of income.

Registering your property with Airbnb is another effective way to derive multiple streams of income. Rather than having only one source of income from a long-term tenant, with Airbnb, you can rent out your property on a daily basis. Short-term rates accumulated within a month are significantly higher than what long-term single tenants can afford.

Tenant Profile

As mentioned earlier, location is crucial when looking at rental properties. The location of your home rental will most likely determine your cash flow, how many streams of income you can have and your tenant profile.

So what is the tenant profile? This is basically the personality of your renter. Who are you renting to, who do you want to work with? It matters who you are renting to because these are people you have to take care of.

As you rent out your place, you are entering into a relationship. Renting out properties is a service-based business, and your tenants are your clients. So it is important to identify what kind of tenants you want to have if you want to maintain a good relationship with them.

Many investors overlook this because they get tied up with the cash flow numbers and the multiple streams of income. They forget who it is that will show up knocking on their door to rent their home.

What kind of tenants do you want to have? Do you want students? Do you want families? Do you want people travelling for business? Now that things are changing from after COVID, what is it that you want your tenant profile to be as a renter?

If you have any questions or topics that you want us to answer on the blog we would love to hear from you. Send us an email at info@chamberlaingroup.ca or give us a call at 587-316-5400. We are here to help, and we love to help. So, let us help you!