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In the area that you live in, is the rents really high but the costs of buying the homes fairly low?
I hear that a $ 85,000 house in Sudbury Ontario can rent out for $ 3,400 per month, and that just blows me away!

Is it the same where you are living?

1 Thought on Is the rents on rental-properties high enough to pay for the costs of buying those rental properties?
  1. Reply
    Dogpile344
    July 23, 2011 at 4:11 am

    Well, of course that depends upon so many factors. Generally, the higher the house prices, the higher the rents because that is the only way for the landlords to have the tenants cover their mortgage payments and other costs. What you have heard about in Sudbury, if true, is almost certainly a student rental property that houses 7 or more students. Students can be a challenge to manage but can be a profitable source if selected and managed well. Most towns and cities have zoning by-laws that limit the number of unrelated people that can share a house before it is considered a rooming house. Once the property crosses that threshold into being considered a rooming house, the landlord is inviting a whole lot of expensive modifications, even if the zoning allows for that use. There are fire regulations (interconnected smoke alarms, sprinklers, fire separations), electrical regulations, parking space requirements and in some areas, student lodging house licences.

    The key is to investigate thoroughly and crunch the numbers before you buy so that you will already know if the property will be profitable before you own it.

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