Rental properties can provide a lot of benefits. Sure, it takes some work to maintain the home and handle tenants, but the extra work is usually worth it.
There are some factors to keep in mind while you’re researching the real estate market. Are you willing to pay the speculation and vacancy tax to get into certain regions in the instance that you’re not able to fill the rental right away? What size of house would renters be looking for? How much can you afford? The list goes on.
If you’re not sure about buying a new or used home, this list of benefits to owning a newly constructed home may help! Always do your research before investing into real estate. Talk to specialists and be sure to figure out your budget.
Most likely the main reason you want a rental property is to gain a bit more moolah each month. A newly constructed home may give you the option of charging higher rent. It all depends on the location, features and amenities.
Since everything is new and up-to-date, you have the freedom to charge a decent rental rate. Do a bit of research on the neighbourhood to figure out what the average rental rate is. Knowing how much rent you can charge will help you optimize your net return each month.
While gaining that extra moolah each month is great, you also need to understand the rights of the tenant and the landlord before you own and operate a rental property in B.C.
The British Columbia tenancy laws require the landlord to have the property ready for the tenant to move in on the agreed upon date. If the house is new, there will be little to no repairs and maintenance required before they move in. This will provide peace of mind and save you time and money.
New homes are typically built with better windows and better insulation than their predecessors. Instead of dealing with single pane windows, newly constructed homes are often built with double, even triple, pane windows.
Air won’t be able to leak out as much and drafts will be kept to a minimum. Usually there are more energy efficient appliances and hvac systems as well. This keeps energy bills low and your tenant will be more comfortable, and isn’t that the goal?
System repairs and replacements are minimal
Because a new house is, well, new, there should be no repairs when you purchase it. All the electrical, plumbing and other systems in the house should be brand new with no need to replace for years to come.
This saves you some cash in the long run, too, as there will be less need for repairs. Over the years, keep an eye on your various systems between tenancies and be sure to ask your tenants if there is anything amiss.
With everything being brand new, this will also save you time and money as you don’t have to worry about your tenants constantly calling about system failures, appliances breaking down or the house falling apart.
Newly constructed homes
Troika Developments has been working tirelessly to bring their beautifully designed homes to the finish line and to provide more opportunities for people to find their dream home or rental property.
“Being a landlord is not only easier in a newly constructed home, it’s also safer,” said Calvin Lechner, Director of Sales and Marketing for Troika Developments. “Our buyers have the peace of mind knowing that their home is covered by warranty, so there won’t be any surprise costs down the road.”
This article first appeared in the Kelowna Now on July 3, 2019.