As you prepare to invest in the Oshawa rental market, you might be considering multi-family properties. This makes sense for a lot of reasons. Multi-family homes are great investments that come with reliable cash flow and a lower vacancy risk. They’re a good way to diversify a real estate portfolio that might otherwise be made up of single-family homes or other investments.
Whether you’re thinking about a duplex, a triplex, or a small building with five or 10 units, make sure you understand the market, the property, and the needs and expectations of your potential tenants.
Benefits to Oshawa Multi-Family Rental Investments
There are a few specific reasons that we love working with multi-family investments:
- Less risk of lost income. If one tenant moves out, you still have rental income from the other units while you’re turning the vacant unit over.
- Lower acquisition costs per-unit.
- You can often leverage your rental income when financing a multi-family property.
- Maintenance costs are lower per-unit. Use the economy of scale to negotiate lower rates on preventative maintenance, landscaping, and other services.
The Oshawa rental market and surrounding areas have a number of opportunities for the multi-family investor. You shouldn’t have any trouble finding the right property and turning it into a profitable rental.
Tenant Relationships are Especially Important in Oshawa Multi-Family Properties
You can expect to be more involved in handling your tenant relationships when you’re working with a multi-family property.
This is simply due to the close proximity in which your tenants live to one another. In a single-family home, your tenants might not ever get to know their neighbors. In a duplex or an apartment building, tenants are going to see each other and hear each other every day. There are shared spaces and common walls.
You could be called upon to handle tenant disputes, especially if someone is playing loud music, parking in another resident’s space, or not cleaning up after pets. A strong lease agreement is going to be important, and you’ll also need a good way of communicating with all your residents.
Determining Multi-Family Unit Utility Payments
When you rent out a single-family home, it’s easy to expect your tenants to set up their own utility accounts and pay the monthly bills.
When you own a multi-family investment, however, you may want to maintain control over electricity, water, and even cable.
There are a few options. You can include the base cost in the monthly rent or you can charge the tenants based on usage. This doesn’t work for everyone, but it might be your best option depending on your tenants and your property.
Working with a professional property management company is always a good idea, especially when you’re renting out multi-family properties. You have a lot of liability with the extra tenants and there’s a lot of time that has to be spent on your building and your units.
We work with a large portfolio of multi-family rental investments in Oshawa. We’d be happy to share additional tips and suggestions before you invest. Please contact us at Investor’s Choice Property Management. We provide property management in Oshawa, Whitby, Courtice, Bowmanville, Pickering, Ajax, and communities in the regions of Durham and Clarington.