The Dos and Don’ts of Buying a Rental Property

If you're considering buying a rental property, and you're serious about becoming a landlord, it's worth looking at the entire picture - in other words, a thoughtful look at the pros and cons. In today's crazy real estate market, buying a rental property could be a viable investment option. Assuming you have the investment capital, and the bottom line makes sense, you may well be on your way to becoming a landlord. Just ask yourself a few questions to be sure. Can you handle the mortgage? How’s your capacity for financial risk? And - can you “weather” the ups and downs?

The Dos and Don’ts of Buying a Rental Property

Keep these dos and don’ts tips in mind when buying a rental property

The notion of collecting rental income and always having cash flow is really a best-case scenario. And while every investor wishes for this, every landlord must also face the reality of problem tenants, late rental payments, and capital expenses that are both unexpected and significant. The best approach is to be well informed, covering all the bases, and always having a backup plan.

Do take advantage of tax deductions

Mortgage interest, realty taxes, and property insurance are all deductible against rental income. In the event of incurred losses, these can be deducted against other income. Depreciation is also deductible (allowing for wear and tear on the building). Finally, rental properties can be re-sold and proceeds invested in another rental property, but without the burden of paying capital gains.

Do look into different property types

When buying a rental property, it’s well worthwhile to ascertain which type of property will deliver the best return on investment. A unit in a multi-family condo (or coop building) may be a good fit. An apartment in a university town might be ideal, especially if you have kids in need of student housing. Or you may want that vacation home on a lake, beach, or skiing community.

Do take your landlord duties seriously

Clearly, you’re ready to collect rent and bank the deposit. But are you also ready for the basic responsibilities? You’ll be managing the property – dealing with tenants – and accountable for problems and repairs. In short, landlord responsibility encompasses both the financial burdens and the personal obligation that comes with satisfying tenant needs (sometimes demanding).

Do calculate the ROI on your property

Today, with sophisticated online technology, you could “run the numbers” on your rental or investment property in addition to the bank manager or real estate broker utilized in the closing process. Online mortgage calculators allow you to assess the “big picture” of your property investment with greater accuracy. In fact, you can input your down payment amount, your mortgage interest rate, and all of your projected costs into a worksheet with a “bottom line”.

Do understand tenant laws

When you’re a buying a rental property, you’re essentially becoming a landlord. You should therefore be fully apprised of the Residential Tenancies Act of Ontario. Even with a property manager on hand (for day-to-day dealings), you’re still the one who is ultimately responsible. This is a time to be well informed and well prepared – it will pay off when problems arise.

Don’t overlook some of the other important aspects

While owning an investment property might be an appealing achievement, don’t overlook some of the underlying aspects of ownership. Your investment capital is now tied up, so it’s better to be thinking about the long term, rather than the short term. Most every real estate expert will advise you that getting into the investment/rental market must be viewed as long term for any gains.

Don’t forget about the NRRP Rebate

If you’re buying a new condo and planning to rent it, you may qualify for the New Residential Rental Property Rebate (must be leased for minimum of a year). The NRRP Rebate is basically a tax refund from Canada Revenue Agency. Since the refund may take time to process, it’s highly recommended to apply immediately when the property has closed and a lease agreement signed.

Don’t overlook more financial outlay

Realistically, being a landlord can entail additional financial outlays beyond the original purchase. And although these expenses may be deductible, they still have to be paid. Indeed, there will always be some type of repairs and maintenance sots to endure. As well, there will inevitably be some emergencies - a plumbing issue, a water leak, broken hardware, or smoke/fire damage

Don’t underestimate the time involved

Being a landlord is time-consuming by any definition. It takes time to vet and choose prospective tenants. It takes time to get all the paperwork organized. It takes time arrange for maintenance work. And it takes time to deal with tenant needs. Yes – it’s possible to hire a property manager to undertake all of the work, but then you have to ask yourself if it’s worth it on the bottom line.

Don’t buy (less expensive) in a bad area

It’s no secret that you get what you pay for with real estate. What’s most important is to do the necessary homework to ensure a good purchase. How’s the neighborhood? Is there a growing population? Is there development planned? Is there proximity to amenities? Bottom line, the area should provide good potential investment growth, while allowing for good return short term.

Don’t lose sight of the important details

Apart from the important financing aspects of every real estate transaction, there are a host of details not to be overlooked. A building inspection should be integral to a purchase. Building insurance and tenant insurance is indispensable. Even something like a fire safety certificate might be relevant. The fact is, nothing is ever too minor a detail to forget about or sideline.

If you’re buying a rental property, make certain it’s the right move

Buying an investment property is usually more complex than buying a principal residence. There are simply more considerations to make – from the type of building, to the type of tenancy, to the investment capacity. However, when the legwork is done, and all bases are covered, real estate can often present better prospects than other investments. If you’re so inclined, investing in a real estate property can provide both short term investment benefits and long term payoffs.

Contact Us

Please Answer 6+8=

Rebate Calculator

Please enter the total value of your renovation including tax.

Total construction cost
(including taxes)
Search Our Blogs

More of our Blogs

29 September 2023

Benefits of Renting Your Newly Purchased Home

Get Money Back with the HST Rental Rebate   The leading opportunity of buying or building a new residential property in Ontario is the HST Rebate. With any purchase you make on goods and services in Ontario, you’re charged Harmonized Sales Tax or HST, which is a 13% tax. With large purchases like a home or condo, the 13% harmonized sales tax can add up to a significant...

View Full Post
20 September 2023

Experts Tips for Navigating the HST Rebate on Newly Built Homes

Here are expert tips on navigating the HST Rebate for new homes.   Retain All Your Records When you’re building a home from the ground up or renovating your existing property, it’s imperative that you keep a copy of all your records. The rebate is designed to give homeowners back a portion of the amount they spent on HST (Harmonized Sales Tax) during construction....

View Full Post
21 August 2023

Tips for Planning Your New Home Rebuild HST Rebate

Learn About the HST Rebate & Eligibility The New Home HST Rebate is a rewarding program for residential property owners throughout Ontario looking to recover some of the costs they invest in building their perfect home. Designed to put money back into your pocket, there are strict requirements that applicants must meet. Before you begin accounting for the HST Rebate in Ontario while...

View Full Post
31 July 2023

Identifying HST Rebate Eligible Elements in Your Construction Journey

Plans & Design Because a renovation must be substantial, accounting for approximately 90% of the property to qualify for the HST Rebate on home renovation, you'll need a plan before you start working on your renovation, demolishing walls and removing flooring. You'll most likely need to source architects and renovation contractors to visualize your rebuild and ensure that all aspects are in...

View Full Post
24 July 2023

Why Rebuild Damaged Homes with HST Rebate in Ontario

What is the HST Rebate on Newly Built Homes? In Ontario, a 13% harmonized sales tax, a combination of GST and PST, is applied to all purchases, including purchasing property or building materials and renovation services. In an effort to enable affordability, the government offers an HST Rebate program which gives qualifying property owners buying a brand new property or building a new home from...

View Full Post
25 May 2023

Guide to HST Rebates & Renovations this Summer

Understanding HST Rebate Programs in Ontario Harmonized Sales Tax or HST is a combination of the Goods and Services Tax (GST) and Provincial Sales Tax (PST) that is applied to all purchases, amounting to 13% throughout Ontario, including homes, building materials, and renovation services. To increase affordability, the new home HST Rebate in Ontario gives residential property owners a portion of...

View Full Post
01 May 2023

How to Cash in on Your Major Home Addition

What is the HST Rebate on New Homes? The New Home HST Rebate is a program offered by the government that provides those purchasing, building, or significantly renovating a new residential property a refund on a portion of their HST spend. HST, or Harmonized Sales Tax, is charged on every purchase of sales and goods in Ontario, amounting to 13%. On a large project like a major home addition, HST...

View Full Post
31 March 2023

Benefits of Renting Your New Home

What is the New Residential Rental Rebate Program? Offered through Canada Revenue Agency, the New Residential Rental Property Rebate is an HST rebate that gives residential property owners a portion of their HST spend back on a newly built condo or rental property. Depending on the property, your eligibility, and the amount spent on HST, this rebate can add up to tens of thousands of dollars back...

View Full Post
20 March 2023

Guide to Applying for the HST Rebate in Ontario for Newly Renovated Homes

Determine Eligibility First, you need to determine if you are eligible for the HST rebate. The rebate is available to those who have completed a substantial renovation or constructed a new home. A substantial renovation is defined as a renovation that involves removing or replacing most of the interior of a home or at least 90% of the home's interior. If you've bought a new home directly from the...

View Full Post
01 March 2023

How to Save Money When You Build Your Own Home

What is the Ontario HST Rebate? The Ontario HST Rebate on New Homes is offered by the Canada Revenue Agency. The program enables individuals constructing a new home from scratch or undertaking a significant renovation of an existing residential property in Ontario to qualify for a rebate on a portion of the 13% Harmonized Sales Tax (HST), which is charged on all goods and services throughout the...

View Full Post
Homeowners, obtain an HST rebate of up to $30,000 today!
get started

Why Choose Rebate4U?

Experienced Specialists

For over 10 years, the Rebate4U team has the knowledge and expertise to help residential property owners throughout Ontario successfully apply for regional HST Rebate programs.

Millions Awarded

We are able to expertly navigate rebate opportunities, staying up-to-date on the most recent rebate developments and changes in the HST Rebate program to maximize returns. To date, we’ve successfully acquired millions of dollars for clients in total.

Free Consultations

Our specialists offer complimentary consultations where we review your eligibility to determine whether you qualify for an Ontario HST Rebate so you can proceed with your application confidently.

Customer Commitment

The Rebate4U team is dedicated to delivering the highest level of customer service, we are here to answer your questions and help you navigate the intracises of your application easily and efficiently.

Cashing-In on the HST Rebate is as Easy as 1-2-3
Contact REBATE4U

Set up a quick, free consultation with the Rebate4U team to explore your HST Rebate options.


Submit your required documents to Rebate4U, and we'll handle your application.


Apply for the rebate and receive thousands in rebates in just weeks with Rebate4U.


We are proud to be working with top Canadian companies

Recent Posts view all posts

Tips for Planning Your New Home Rebuild HST Rebate

Rebuilding your home from the ground up can be a daunting undertaking but incredibly rewarding with the right approach and programs like the HST Rebate in Ontario. The New Home HST Rebate allows qualifying residential property owners to recover a portion of their rebuilding co...

Read More

Identifying HST Rebate Eligible Elements in Your Construction Journey

The HST Rebate in Ontario is an excellent opportunity for property owners looking to undergo major construction. Whether you've recently purchased a plot of land to build a brand new property or are planning to tear down an existing home to its studs and renovate it, the HST R...

Read More
We Are Based

101-3185 Bathurst St
Toronto ON
M6A 2B2


Connect With Us

Please, enter a valid value

We are sorry...

But the values you entered are invalid


In celebration of our 3 year anniversary at Rebate4u Inc, we have decided to reduce our fee structure for all new home and renovation rebates including the New housing rental rebate.  

Don't waste your time looking for anyone else to take care of this because we will not be under sold.
Please fill out the form below or call us at 1-800-610-4510

Please, enter a valid value