Being a landlord in Montreal, as in many of the world’s metropolises, comes with its unique blend of opportunities and challenges. With its rich culture, vibrant rental market, and diverse population, Montreal offers a stable and attractive market for anyone considering stepping into the world of real estate investment. And although the challenges can be daunting, we believe the pros outweigh the cons. In this article, we explore some of those benefits and drawbacks in order to paint a clearer picture of what is involved in being a landlord in this bustling Canadian city. 

Pros of Being a Landlord:

1. Steady Income Stream

One of the most significant advantages is the potential for a steady income stream. Montreal's rental market is robust, and rents have been rising consistently, especially thanks to the city's strong university presence. Our city boasts four major universities, two French- and two English-language (U de M, UQAM, McGill, and Concordia), which helps ensure a continuous influx of students looking for rental housing. Long-term residents and other immigrants also contribute to the demand for rental properties.

2. Property Appreciation

Over the years, Montreal has seen a notable increase in property values. According to Centris statistics, median property values have increased by over 70% during the past 10 years. In 2014, the average Montreal home was worth about $380,000, compared to about $650,000 today. That represents a solid 7% appreciation year-over-year. 

3. Income Tax Benefits

Landlords can take advantage of various tax deductions, ranging from mortgage interest, property taxes, and maintenance expenses to insurance and utility bills, if these are not paid by the tenant. These deductions can significantly lower taxable income, making real estate investment even more appealing.

Cons of Being a Landlord:

Owning a rental property can be rewarding, but it’s not without its challenges. Dealing with tenants, especially those who know how to exploit renter protections to their advantage, requires a learning curve, to say the least. It’s a business that demands patience, some legal knowledge, and a hands-on approach to property management.

1. Tenant Issues

Landlord-investors often encounter difficulties with tenants, ranging from late or non-payment of rent to major damage to the property. The eviction process can be lengthy and costly, not to mention the lost income and potential further damage to the property while under way. Landlords may also have to deal with overly demanding tenants who are constantly complaining. Keep reading to learn more about the regulatory challenges facing landlords in Montreal.

2. Maintenance and Repair Costs

Owning rental property means staying on top of maintenance and repairs, which can be time-consuming and costly, especially if you are not a DIY-er. Maintenance needs to be ongoing, and repairs can be unexpected. Harsh Montreal winters can be particularly tough on buildings, potentially causing issues like power outages, burst pipes, roof damage from heavy snowfall, or heating system failures. For instance, a sudden sewer backup after a torrential rainstorm. such as what Montreal and area experienced this past August, can mean significant expenses and headaches for landlords. Additionally, keeping up with regular maintenance while ensuring that the property remains profitable can be a delicate balance to strike. 

3. Regulatory Challenges

In Quebec, the Régie du Logement (rental board) governs landlord-tenant disputes. Montreal's rental market is heavily regulated, with strict rules governing lease agreements, rent increases, and eviction processes. Navigating these regulations can be complex and challenging, especially for new landlords. The city's tenant-friendly laws are designed to protect renters, sometimes at the landlords' expense, making it vital for property owners to be well-versed in local rental laws.

Mark and Catherine Broady both own income properties in the West Island and based on their personal experience believe that they make for a sound investment, despite the challenges that go along with being a landlord. 

“You’ll always hear a few horror stories, which tend to scare some people away from real estate investment,” says Catherine, “but in my experience, the pros far outweigh the cons, especially if you know what you’re doing. The most important thing is to carefully vet your prospective tenants by doing detailed credit checks and obtaining credible references.”

At TEAM BROADY, we believe that with the right approach, being a landlord can be a fruitful investment. We can not only support you with the purchase of a profitable investment property but can also help you find a high-quality tenant with whom you will have a harmonious relationship. Please consider us for your next investment property sale or purchase. We can be reached at 514-613-2988 or by email at info@teambroady.ca.