Student rental property in Ontario
Good evening,
I had recently bought a student property in Ontario through a private sale.
I have questions about few things. I ran through the numbers from the past few months and the cash flow is negative.
a. I took over the lease of the existing tenants. I can only increase the rent by 1.8 % as far as I understand? I am planning to do renovations in the near future, so there is no way to cover that renovation through a price increase? I need to give 90 day notice of the price increase?
b. Some of the tenants will be moving out, so I can provide them with new contracts and adjust rent accordingly. Part of the reason why I am negative is because of high utilities/gas. Let's face it. Students don't care, because it is not theirs. What is the best way of handling the high utilities? Ask them to split?
c. If the property was declared as primary residence, but is now a rental, does the property lose its primary residence status? What are the effects with CRA and the mortgage company? Will the first time home buyers be taken back? If yes, how do declare taxes and not lose primary status? The property is resulting in a net loss anyway.
d. To bring in new potential tenants, I have to give current tenants 48 hour notice. Are the current tenants obliged to open the room for viewing?
e. Standard practice is signing 12 months lease. Are there any other general tips, advice, on including causes in the contract? I see that some people add tenant insurance. I already got an insurance policy. With upcoming marijuana legislation, is it wise to include a no-smoking close?
Any advice is appreciated.
I had recently bought a student property in Ontario through a private sale.
I have questions about few things. I ran through the numbers from the past few months and the cash flow is negative.
a. I took over the lease of the existing tenants. I can only increase the rent by 1.8 % as far as I understand? I am planning to do renovations in the near future, so there is no way to cover that renovation through a price increase? I need to give 90 day notice of the price increase?
b. Some of the tenants will be moving out, so I can provide them with new contracts and adjust rent accordingly. Part of the reason why I am negative is because of high utilities/gas. Let's face it. Students don't care, because it is not theirs. What is the best way of handling the high utilities? Ask them to split?
c. If the property was declared as primary residence, but is now a rental, does the property lose its primary residence status? What are the effects with CRA and the mortgage company? Will the first time home buyers be taken back? If yes, how do declare taxes and not lose primary status? The property is resulting in a net loss anyway.
d. To bring in new potential tenants, I have to give current tenants 48 hour notice. Are the current tenants obliged to open the room for viewing?
e. Standard practice is signing 12 months lease. Are there any other general tips, advice, on including causes in the contract? I see that some people add tenant insurance. I already got an insurance policy. With upcoming marijuana legislation, is it wise to include a no-smoking close?
Any advice is appreciated.