Rental Property

Rental Property In Salt Spring Island

Many borrowers purchase their own home in Salt Spring Island as an investment to begin building home equity.

Some people opt to live in their 'forever home' in Salt Spring Island, and some opt to use their home as a rental property.

Having a rental property has potential to open you up to new opportunities in Salt Spring Island, let's dive more about rental properties below!

Owning Your First Home In Salt Spring Island

As a first time home buyer, you'll likely want to take advantage of the First Time Home Buyer Incentive. If you're hoping to use your property as a rental property in Salt Spring Island, it's important to know that with the First Time Home Buyer Incentive you must intend to use your property as a principal residence, not a rental property.

If you're interested in exploring avenues for how to purchase a home to use as a rental property, connect with myself (your licensed Salt Spring Island mortgage broker) to discuss your options!

As a licensed Salt Spring Island mortgage broker, I can assist with information regarding a mortgage for your rental property, and help you decide:

• Whether a fixed vs. variable rate will be in your best interest
• Whether you should lean towards an open vs. closed term mortgage
• What length of amortization will serve you best

Many of these factors will impact your over all cost of borrowing - it's essential that you make wise mortgage decisions so that your rental property in Salt Spring Island is as profitable as possible.

 

Tips For Mortgage Approval On A Rental Property

It would be awesome if mortgages in Salt Spring Island were handed out like candy, but they aren't.

Regulations are in place to protect the lender, the economy, and the borrower - it's important that borrowers meet minimum qualification requirements for their mortgages to lower the risk of defaulting on their mortgage!

Some important personal factors which are assessed in a mortgage application for a rental property are:

• Your credit score and credit report (checkout 'credit 101')
• Your down payment amount
• Your income and employment history
• Your debt ratios

If you're concerned that you may not meet lender qualifications to own a rental property of your own, I'd be happy to help!

As a licensed Salt Spring Island mortgage broker, I have access to countless mortgage programs allowing my valued clients (that's you!) an increased opportunity to own a rental property.

Worried about bad credit? Are you self-employed? I have flexible mortgage solutions available to navigate these challenges!

If owning a rental property in Salt Spring Island is your goal, let's work together to assess lending options including A-lenders, alternative B-lenders, and private lenders so that we can get you pre-approved (and approved!) for an amazing mortgage.

 

Restrictions About A Rental Property In Salt Spring Island

Before you purchase a property and assume you'll be allowed to use it as a rental property, there are some important aspects to consider.

Have You Evaluated These Factors For Owning A Rental Property In Salt Spring Island?

• Some cities don't allow certain types of rental properties. Always learn about what type of rental property you'll be allowed to have. Does your neighbourhood allow short term rental properties such as Air BnB? Check-in first to assess local rental property regulations
• If you took advantage of the First Time Home Buyer Incentive, you may not be able to use your property in Salt Spring Island as a rental property
• Your strata may not allow for your home to be used as a rental property in Salt Spring Island. Some stratas have no restrictions, while others are very strict

There are other considerations involved when deciding whether to own a rental property, many which vary on a case-by-case basis.

Now let's check out the benefits and considerations of owning a rental property in Salt Spring Island!

 

The 411 Of Owning A Rental Property In Salt Spring Island

Once you’ve done the hard part (becoming a homeowner in Salt Spring Island!), you can glide towards having a rental property and being a landlord; this means you are responsible in overseeing your property, so if the tenant has any maintenance issues, it is up to you to resolve them.

Here are some helpful considerations and benefits to be mindful of with a rental property:

Benefits of a rental property in Salt Spring Island

• The rent is additional income which helps build your home equity
• You can hire a property manager to lessen your responsibilities with overseeing the property
• You can purchase landlord insurance which assists with rental property damage, lost income etc.
• The income from a rental property is often 'passive income'
• A rental property in Salt Spring Island may benefit your tax situation
• You maintain the option to move back into your rental property and use it as a primary residence

Considerations of a rental property in Salt Spring Island

• If an appliance/integral structure of the house requires maintenance, you'll need to fix it or hire someone who can
• If the housing market 'gets hot', your tenant is locked into their agreed upon rental rate and has many protections
• As a landlord, you'll need to have a good understanding regarding your tenants rights
• If you have a 'bad' or 'problematic' tenant, depending on where your rental property is located and local regulations, it can be difficult to evict them
• If your tenant doesn't pay their rent on time, it comes down to you to ensure the mortgage on your Salt Spring Island rental property is paid on time

Owning a rental property in Salt Spring Island can be a great investment... just ensure you are well-informed regarding the rights of both landlord and tenant!

 

 

Short-Term Rental Property Vs. Long-Term Rental Property In Salt Spring Island

Your goal for owning a rental property is likely to increase your own home equity and investment profile. Your financial return on your rental property could be influenced by what type of rental property you choose to operate in Salt Spring Island.

Here's some food-for-thought regarding short-term and long-term rental properties

• A short-term rental property (Air BnB or other similar platform) can allow you to rent out your property at an optimal rate. This can be great for business, but you run the risk of your rental property enduring more wear-and-tear or sitting empty.
• If you decide to run a long-term rental property in Salt Spring Island, your tenant will have certain rights as laid out by regulatory authorities. A long-term tenant can be great for peace-of-mind, but you will also only be able to 'raise rent' according to annual increases as determined by the government.
• During times of inflation or economic uncertainty, your interest rates may increase significantly on your rental property's mortgage - if you have a long-term tenant, unfortunately it won't be them who's taking the financial hit.

 

A Competitive Mortgage For An Attractive Rental Property In Salt Spring Island

If you're considering taking the next steps towards owning a rental property in Salt Spring Island, congrats!

Or maybe you already own a rental property, but you're on the hunt for a competitive mortgage renewal or refinance.

Either way, I'd love to help! I'm Kyle Benzies (licensed Salt Spring Island mortgage broker); I have extensive experience in helping borrowers (just like yourself!) secure financing for the perfect rental property.

To discuss your mortgage options for a rental property in Salt Spring Island, give me a no-risk call today!

***other conditions may apply to anything listed above. The information provided on this page should NOT be implicitly relied upon, and may not be 100% up to date. It's best to contact us for the most current conditions/program offerings***