Know Your Rights and Responsibilities As A Landlord
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To be a successful real estate investor, you need to buy properties that are able to quickly turn a profit. Investors are often attracted by the low cost of resale properties. They know that they’ll easily be able to charge enough rent to start earning right away. What not everyone realizes, though, is that all of the problems that come with older properties can quickly eat away at those profits.
This is why more and more investors are looking at new construction properties. Sure, the cost of the home can be higher depending on the style you choose, but there are significant advantages to these homes that outweigh the initial purchase price.
Learn more about why new homes are a smart real estate investment, then talk to our Area Managers about how you can get started.
New Home Warranty
One of the biggest attractions is that all new homes are going to come with a New Home Warranty. You can buy with confidence because you’ll know that you won’t have to deal with making major repairs soon after your tenants move in. If an issue comes up that isn’t from regular wear-and-tear, it will likely be covered by the warranty. Even all the appliances will be new and have warranties!
The New Home Warranty covers different aspects of the home within certain time frames. Be sure to carefully read it over so that you understand what’s covered. You may be responsible for a certain amount of maintenance in order to keep the warranty valid. Ask any questions you may have.
Less Maintenance and Repairs
Landlords often have to deal with making a number of repairs to their properties. In resale homes, these repairs come up frequently because everything in the home is gradually breaking down. Warranties don’t always cover everything, but when you buy a new home, you can rest assured that you won’t be making all of these frequent repairs. Since everything in the home is new, it’s less likely to break down from normal use.
Think about what most rental homes look like: drab walls in neutral colours; cheap carpet or linoleum flooring; and outdated light fixtures. Now think about the different look that you’ll find in a brand-new home. While you can make selections on your own to fit your budget, you can expect to have things like durable vinyl plank flooring that has the look of hardwood, attractive tile backsplashes in the kitchen, and quartz or granite countertops throughout the home. New homes will also have modern features, like an ensuite in the master bedroom or deep pots-and-pans drawers in the kitchen instead of under-counter cabinets.
These types of modern updates are attractive to renters who are tired of the same old boring look of regular rental homes. This means you’ll be able to command a higher rental price — and you’ll have people lining up to pay it!
Another great thing about brand-new homes is that they’re usually quite family friendly. A lot of typical apartment rentals come in one- or two-bedroom varieties. They’re also usually in a large building with several other units. There’s rarely a backyard for the kids to play in or space to store things like bicycles and scooters.
New homes, however, have a bit more space. Many are designed with at least three bedrooms, so families feel like they have enough space for everyone. They also tend to have a private or semi-private backyard. And new homes are located in communities that are designed for families as well. They have walking trails or bike paths, large playgrounds or green spaces, and many even have a school that’s within walking distance.
As a landlord, attracting families as tenants is a great move. Families tend to want to stay in the same place for quite a while, so you won’t have to worry as much about turnover.
People don’t always realize that new homes offer opportunities to have more than one unit in the building. Sometimes, investors purchase both sides of a duplex home and rent each side individually. These homes are a popular choice because they have the look and feel of a traditional home. Another great option is to purchase a typical two-storey home, then convert the basement or the space over a detached garage into an income suite.
Having more units in your property means that you can maximize your rental income. Be sure to discuss this option with an Area Manager if it’s something you might be interested in.
Great Deals on Quick Possession Homes
Often, builders will have a variety of home models and styles already built or close to being finished. They are made with the most popular features that today’s renters are looking for. Best of all, you may be able to get a discounted price as builders look to move more of their older inventory. This is great news for investors who can watch their property value increase from day one with a great deal, and they can attract renters right away with a move-in ready home.
New construction homes are rapidly becoming the style of choice for real estate investors. Now is a great time to dip your toe into the market. With the New Home Warranty and the stylish look that renters want, you will be able to start earning a profit in no time at all.
Additional Resources for Investors!
Capital Gains on Rental Investment Property
Tax Deductions on Rental Properties
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Time Commitment to be a Real Estate Investor?
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How to Evaluate Investment Properties
Benefits Of Renting New Construction Homes
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6 Common Mistakes to Avoid in Real Estate Investing
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Everything You Need to Know: Your Rights and Responsibilities as a Landlord (and Why)
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