Buying a Rental Property - Question 2

2. How much income will the property generate? 


You will need to do some research into the neighbourhood. What does rent typically cost, and what is the vacancy rate in that area? Don't assume that you will always have a tenant -- according to the Canada Mortgage and Housing Corporation (CMHC), the average vacancy rate in Canada's 35 major centres is 2.5 per cent. To be safe, assume a four or five per cent vacancy rate into your financial projections, and don't forget to calculate potential costs, such as repairs and maintenance.

Stay tuned for question 3 tomorrow

 

Source: Canadian Living

Walter Warford

Walter Warford

Sales Representative
CENTURY 21 First Canadian Corp., Brokerage*
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