5 steps to renting your property

Renting out a property is an ideal way to profit from a real estate investment. It is also an option worth considering if you are about to sell a property.

Enter Vistoo, the real estate platform that you can go to and find out what the preliminary steps are to renting a house in Quebec.

Insuring your property

The first thing you need to do before renting a house in Montreal, or anywhere else in the province, is to make sure you have rental property insurance.

This insurance is similar to the standard type you already have. However, some of the coverage will be different and be in your favour you when you rent.

It is imperative you inform your insurance representative that you wish to change your housing arrangements before you take in your first tenants. There could be many potential risks in renting out your property, in whole or in part, without being properly insured. For example:

- Your insurance contract could be cancelled if an investigation reveals that you were renting out your property without having informed your insurer.

- Your homeowner's insurance policy does not cover your tenants' property and you could be held liable for damages if you are found responsible for the event that caused its destruction.

In addition to protecting you from these risks, rental property insurance will allow you to sleep soundly while your rental home is covered for damages or loss of income, if caused by an insurable loss.

Inspecting your property

Another step to take before you rent is to have your property inspected. Depending on the age of your home, it is very possible that it has accumulated a variety of cosmetic or structural problems.

You may want to inspect your home yourself to ensure that there are no obvious problems that could cause issues when renting.

However, it may also be a good idea to hire an inspector. He or she will be able to point out important repairs that need to be done to avoid problems when you rent your property.

An inspection will allow you to identify urgent repairs that need to be made to your property. After all, as a landlord, you have some obligations to your tenant. You must:

• Provide a clean unit in good condition
• Ensure that the unit can be used for its intended purpose (living)
• Make all necessary repairs. The only exception being minor maintenance repairs.

In short, a professional inspection will ensure that your home meets these criteria before you rent it out.

This step may not be as crucial if your property is very new, but in any event, prevention is less costly than the cure.

Finding Tenants

Now that your property is inspected and properly insured, you should be at the point where it's ready for your first tenants.

Generally, you have two options for renting your property. You can try to find tenants on your own, or you can hire a real estate broker to help you.

The services of a real estate broker include:

• Evaluating the rental price
• Advertising
• Pre-screening of tenants
• Document management

Generally speaking, it is wise to use a real estate broker, especially if you have never rented a property before.

However, if you are comfortable carrying out the above steps on your own, there is nothing to stop you from finding tenants without a real estate broker’s help.

Drafting a lease

Next, it's time to draft the lease agreement for your house. To avoid conflicts with your tenants, your lease should be as clear and accurate as possible.

Overall, there are a few things you definitely should remember to include on the lease agreement. It absolutely must contain:

• The duration of the lease
• The move-in date
• The rental amount and any deposit (if applicable)
• And other essential information

A notary or lawyer will be able to help you draft a lease that you are comfortable with. A professionally drafted contract will cover all the necessary information that needs to be disclosed in this type of contract.

The contract can also include additional options. For example, renting with the option to buy, if you are also interested in selling your property in the near future.

Entering into an agreement

Once the lease has been drafted and a potential tenant has been found, all that remains is for you to close the deal and let your tenant move into your property.

It is important to note that you still have the right to visit your property when it is rented, but this right must be used in a reasonable manner.

In fact, the law provides for a 24-hour notice before any visit (to check the condition, to carry out work, etc.). In addition, these visits must generally be made between 9:00 a.m. and 9:00 p.m. In the event of an emergency, it is possible to slightly adjust the advance notice period and this schedule.

Ready to start renting?

If the idea of renting out a home appeals to you, you may be interested in buying a new property or even a construction project. We are here to provide you with a hassle-free buying experience.

Looking for homes in Montreal or in the rest of the province? You will find the perfect property with Vistoo, the new real estate platform par excellence in Quebec.