Right Now is the Right Time to Buy an Investment Property

The pandemic was a scary time for landlords. You may remember Premier Doug Ford essentially telling Ontarians in March 2020 that they wouldn’t be evicted if they didn’t pay rent. For corporate investors, this announcement was damaging. For small investors, it was downright disastrous. 

Many horror stories emerged in the months and even years that followed: A landlord forced to sleep in his car because his tenants refused to pay rent. A single mother owed $13,000 in back rent and utilities. A man unable to move into his own home because his tenant refused to leave.

These stories can be pretty discouraging for anyone hoping to buy an investment property. But hidden within them is a unique opportunity. In fact, this may actually be the perfect time to invest.

The Housing Supply Will Only Get Tighter

A lot of people are spooked by the news stories about tenants refusing to pay rent. Not to mention, the backlog at the Landlord Tenant Board is enough to scare away any potential investor. There was a 14 month backlog during the pandemic. We’re now back down to 6 – and even after that, enforcing an eviction can take many more months.

As a result, many investors aren’t interested in purchasing long term rental properties. That means fewer housing units are available for rent. Lower supply = higher rents. If you’ve invested before, you probably see where I’m going with this.

Why This is a Huge Opportunity

True, there are a lot of landlord horror stories. But if you read those stories, you’ll notice a common throughline: a lack of due diligence. Going through the proper process of vetting tenants can make a HUGE difference and make sure rent always gets paid on time. 

For those willing to put in the work, this is a great time to invest in the rental market – quite simply because not many others are. Rent is only projected to increase over the next 5 years, and a competitive rental market means you can be picky with who your tenants are.

The Bottom Line

Don’t let the news discourage you. Right now is a great time to invest. Just do your due diligence when screening tenants – it’s all about asking the right questions. There is a process that all landlords should go through which I’m happy to share with anyone that asks. 

The most successful landlords don’t just invest money into their properties; they also invest the time. It’s hard work, but if it’s done right, it’s worth it. That’s why real estate continues to be one of the most sound and low risk long term investments. 

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis: 416-224-0114; steve@canadamortgagenews.ca