Being A Landlord In Calgary Rocks!
Fed up with tenants having all of the power? The government turning a blind eye to the dysfuncation at the Landlord Tenatn Board? Well Calgary shines as a landlord's dream - Calgary offers a smoother ride for your real estate ventures. Join me in reaping the rewards of landlord life in Alberta!
#1 - Evicting Tenants Who Are Not Paying Rent
In Alberta, if a tenant does pay their rent in full by the date it is due, a landlord can give the tenant a 14 day notice to terminate the tenancy. The tenant then has 3 options:
Pay the full rent and keep living in the property
Move Out
Nothing and the Landlord can file an eviction application against the tenant.
The options are very similar Ontario but the HUGE difference is that the rules are actually enforced in Alberta and it only takes around 30 days on average to evict a tenant in Alberta. In Ontario, you will be lucky if it only takes 10-12 months and it can take longer if you make a single mistake on the paperwork.
Your investment can only be profitable if you actually get paid the rent owed so invest in Calgary where the rules are actually enforced.
#2 - Rent Increased
There is no limit on how much a landlord can increase rent in Alberta every 365 days (rents are up over 25% YoY in 2023). In Ontario, any property built before Nov 2018 is subject to rent control and the maximum you can increase rent in 2024 is 2.5%, in BC it is set at 3.5% - this is WAAAAY below the cost of inflation, let alone your mortgage cost increases!
Protect your investment and buy in a city like Calgary that allows you to adjust the rent according to market factors.
#3 - Lease Duration
In Ontario, your 1 year lease automatically converts into a month-to-month lease and the only reason you can ask your tenant to leave is if you are personally moving into the property. This is a HUGE issue with problem tenants because you have virtually no options to get them out of your property.
In Alberta, most leases are fixed for 1 year and automatically expire at the end - the Residential Tenancies Act actually assumes that a tenant will move out - no notice, form, or reason is required by the landlord!
At least one month before the end of the lease, the landlord and tenant should discuss whether the tenant wants to stay. If the tenant wants to stay, you would draft and sign a new lease for another 1 year period. However, the landlord does not have to agree to a new lease and if they don’t the tenant must move out.
#4 - Damage/Security Deposits
In Ontario, at the start of a tenancy you are only allowed to ask your tenant for the first month’s rent, last month’s rent deposit, and a reasonable key deposit. You are not allowed to ask for a damage or security deposit of any kind. This means that if the tenant damages the property beyond normal wear and tear it is incredibly difficult to get any compensation and it’s usually not worth your time and effort. This means the cost is coming out of your pocket.
In Alberta, you are allowed to charge your tenant a security deposit of up to one months’ rent when the tenancy starts to be used to cover any damages to the unit. If there’s no damage then you simply return the deposit within 10 days after the tenant has left. If there is damage, you can keep the reasonable cost of the repairs.
#5 - Pet Provisions
I love animals, I am a huge dog guy but they are a nightmare from a landlord perspective - nails can scratch floors, letterboxes can cause foul odours and pet hair can get everywhere! You know when someone is living with an animal.
In Alberta, landlords can decide whether or not to allow pets in their rental properties - it’s as simple as that. If a landlord does allow pets, then they can even charge a non-refundable pet or cleaning fee to cover any extra costs that may be required.
Now in Ontario, it is legal for landlords to reject tenants if they suspect that they will move in with a pet but as soon as a tenant moves into the unit they can get a pet that day and there is nothing a landlord can do; and you cannot charge a cleaning fee.
Just another reason why it’s just better to be a landlord in Alberta.
Reason #6 - Cost to Rent A Property
You can list your property for rent by yourself by posting it on Facebook marketplace, Kijiji or there are many other rental websites for absolutely FREE. I tried this myself back in 2015 when I got my first rental property and I was not a real estate agent at that time - it was an absolute disaster - most of the viewings ghosted me and the quality of tenants was soooo bad. The moment I let a professional take over, I had 3 offers for above the market rent within a week - as with anything, it makes a HUGE difference when someone knows what they are actually doing.
Regardless if you are a local or remote investor, I strongly recommend getting professional help when renting your investment property because finding a AAA tenant upfront is the best way to avoid 99% of landlord tenant issues later.
In Ontario, it is typically a real estate agent assisting you to rent a property and they typically charge a commission of 1 month’s rent each time you need to find a new tenant - half of this is shared with the tenant’s real estate agent.
In Alberta, it is typically a property management company assisting you and they typically charge less than ½ a month’s rent - in fact, I have special partnerships where it’s even less. This is because they are typically dealing directly with the tenants so there is no need to pay a second agent a commission.
But The level of service is the same - both will advise on pricing and market strategy, list and advertise the property, conduct showings, and vet and screen tenants.
When you look at all of the benefits of being a landord in Calgary versus other major cities, you quickly realize that being a landlord in Calgary is just a better deal. If you’re still unsure about being a landlord or have any questions, get in touch!