1. Get proper insurance
After deciding to rent out your property, notify your insurance company and receive proper insurance. Landlord’s insurance will protect you against damage to your property or any liabilities.
Should the property be damaged in a fire or storm, the insurance company will cover the cost of the repairs. However, many insurance claims do not cover damages caused by the tenant. Be sure to clarify in your claim with your insurance agent or inquire about adding on tenant insurance.
2. Be competitive about your pricing
Research the average pricing of rental properties in the market and set a competitive price. Avoid listing your property at the lowest rental price to attract more tenants; it will likely backfire because it will attract tenants who are only focused on price and who will leave in search of the next lower priced unit.
3. Understand landlord’s rights
It’s important that landlords know their rights and their tenants’ rights to avoid any lawsuits or legal issues. Canada Mortgage and Housing Corp. lists extensive information for each province on what landlords can and cannot do. Or view BC's Residential Tenancies website.
4. Maintain the rental property
If the rental property requires any repairs or is in need of a touch-up, be sure that they are conducted before viewings start. Create a space that is clean and comfortable; as you would for yourself. After a tenant has moved in, be responsive and timely when they contact you should an issue arise.
6. Understand tax laws
Canada Revenue Agency requires that rental income is reported on your annual tax return. Any reasonable expense – repairs or renovations, for example – incurred to earn your rental income can be deducted, but you cannot deduct the value of your own labour if you do the repairs or renovations yourself. If you’re unsure, the CRA provides a full list of expenses you can deduct.