Marc Dessureault
Real Estate Broker
Buying for Income
In residential real estate, income property is considered to be 5 dwelling or less such as 5 and 4 plexes, triplexes and duplexes. You may choose to live in one of the units, or rent it alright for further income opportunities.
Always keep in mind that you must comply with all rules and regulations of the Rental Board (Régie du Logement) and be able to service your tenants.
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Investing in a plex can be a great way to secure your financial future, if you know the rules of the game. The property value is often determined by the percentage of income established in each lease agreement (rent), the quality of the building and the amenities being included in each lease. Furthermore, the quality of each lease is determined by the available services in proximity of the property such as public transportation, shopping, restaurants and recreation centres.
Here again, like in any endeavour to purchase property, the Diagnostics Survey guides you and I towards the perfect target. In many instances, the main floor is usually held by the owner, unless it is fully rented. The value of the rent posted on the listing is therefore "speculative", whereas all other rent values are determined by their respective lease.
Remember this rule of thumb. As a new owner of an investment property who wants to eventually occupy one or all of the units, you must provide your tenants with a 6 month notice of eviction prior to the end of their lease term.