One of the key considerations in buying a rental property is its location. By investing in a property you’re also investing in the neighbourhood. The quality of a neighbourhood can impact the type of potential tenants you’ll attract, the amount of rent you can charge and your property value, among other things. The type of tenant (students, families, professionals, etc.) you want to target could also influence which neighbourhoods you include in your search.
Here are some questions to keep in mind as you narrow your list of potential properties:
- What is the demand/market for rentals in the area? (REALTOR.ca is a great resource to help answer this.)
- What are the average rental rates?
- What’s the jobs/economic outlook for the area?
- How safe is the neighbourhood?
- What is the quality of the local schools?
- What is the neighbourhood’s proximity to police, hospitals, health care facilities, public transportation, major highways, etc.?
- What does the area offer in terms of amenities (shopping, gyms, parks, restaurants, theaters, etc.)?
- Are any major development or infrastructure projects planned (new condos, business parks, subway lines, etc.)? If so, for when and how long?
Read more on evaluating a rental property.
Consult an investor mortgage specialist for help choosing the right mortgage for your rental property.