Ontario Landlords Association Announced the 2016 Rent Increase is 2%. Ottawa Landlords Are Looking Forward to A Successful New Year in 2016 with Rent Increases and Using Credit Checks To Find Good Tenants
The news from the Canada Mortgage and Housing Corporation was good for Ottawa landlords.
In their report CMHC said MLS sales are expected to rise in Ottawa in 2016. This growth in sales will result in prices in our region at least matching inflation.
The report continued on by stating that economic conditions are expected to improve in 2016 and this will lead to more rental demand as the number of people moving to the region rises. With new renters coming the vacancy rate will decrease and landlords will have a strong and growing supply of qualified tenants wanting to rent from them.
Good News For Ottawa Landlords in 2016
Many experienced investors also feel the victory of the Liberals under Justin Trudeau is good for the area. The Liberals have stated they will increase the hiring of federal government employees and spend money on improving transportation all over Ontario. This means more jobs and that means more tenants looking for your rental property.
Ottawa Landlords Can Raise the Rent By 2.0% in 2016
According to the Ontario Landlords Association Ottawa landlords can raise the rent by 2.0 per cent in 2016. With a combination of a decreasing vacancy rate along with higher costs to operate your business, many Ottawa landlords are going to raise the rent in 2016.
The Rent Increase in Only 2%?
Yes, and many landlords think it’s far too low. After all, our costs continue to rise with things such as higher taxes and higher costs for professionals to help maintain your rental property. The good news is your property might be exempt from the rent increase guideline.
Make Tenant Screening A Priority in 2016
With more renters out there and increasing costs make sure you make tenant screening a priority. Only inexperienced or naive landlords will rent to tenants based on a handshake or a ‘conversation.’
We’ve written before about what happens when landlords don’t make tenant screening a priority. Experienced and successful landlords know the key is to make sure you rent to financially responsible people.
How Do I Make Sure My Potential Tenant Is Financially Responsible (and will pay the rent)?
The way you do this is by running a credit check on every potential tenant who wants to rent from you. No matter where you live in our country Canada Landlords are aware of the importance to credit checks as part of their tenant screening system.
By running a tenant credit check you can make sure you not only “know who you are renting to” you also “know if they pay their bills on time.” A credit check is an essential tool used by experienced and successful landlords who run profitable rental properties.
Ottawa Landlords Success in 2016
With an improving market it’s important landlords make sure they increase the rent to cover their costs (at least partially) and run credit checks as part of their screening process.
By renting to good tenants and a good rental rate, Ottawa landlords are looking at a very successful New Year!