Initial Walk through

[Nick Stormoen]

I am in the market for my first investment property.  I have purchased and lived in 3 houses of my own already, so I have already been part of the initial process. I am looking for some help with what kinds of things I should be looking for when I go on an initial viewing or walk through of a rental property. I  know rentals are different so I am looking for somethings that I should specifically look for on a rental property.  I am looking at both duplexes and single family homes. 

- Thank you

[Luc Boiron]

Everyone has different criteria, but I like to walk through a rental and think of it if I were to live there. Certain things that would be a red flag to me would be for tenants as well. If the layout is bad, or if the appliances are functionally laid out, or you need to duck to go between areas, these are all things I would look at. Can you rent it out? Sure. But if I wouldn't like it if I lived there, a tenant wouldn't either.

This helps find something that is easier to rent. It also depends on the market you are targetting, so if you are renting in C areas and would live in an A area, it's a little different.

You also need to look at issues you may have or things that might give you headaches. You don't want to be visiting the property often, and don't want it to be destroyed easily.

For example, I recently saw a beautiful cottage with a lot of solid wood throughout, including the floor and walls of the bathrooms. An owner would take care of this wood, and wouldn't damage it. I'm not sure I can say the same of tenants, so I wouldn't want that kind of finish with tenants.

If you have water come in to your unfinished basement in your home, you can keep an eye on it, and try to grade the soil or run downspouts further away. You then would keep an eye on it and try to make sure the problem has been solved. With a rental, you won't have the same situation. Something may not be working right an damaging your property, and the tenant may not tell you.

Certain things just cause more work for you. Does the pilot light on the furnace need to be turned on manually ever winter?

A difference for you will be to look at things that an owner would be fine with, but tenants won't take care of or know how to do. In the end, it will fall on you or your manager to take care of it, and it's more work.

My $0.02 (CAD), good luck!