Equity-Building Tips for Landlords

Equity is what its all about and 100% Equity is Gold

The beauty of owning a rental property is that it works for you to build equity by having a good solid property and a responsible tenant who will basically pay your mortgage and operating expenses for you. Buying smart is important.

It’s a challenge to get into but not impossible with some hard work and doing your homework. It involves serious money up front and needs a serious approach and not something to undertake lightly.

Long-term thinking is important. You will probably have a mortgage that is covered by the rent. Over twenty five years your property should increase in value and the mortgage substantially or completely paid off and the property is now yours.

How to Get into Being a Landlord

You need cash to pay down at least 25% to avoid CMHC fees. You may have received an inheritance or a nice bonus cheque. The down payment for a $400,000 property is 25% to avoid CMHC or $100,000. If you have that, you’re off to the races.

Finding the Property

An honest experienced realtor or someone you can trust to find you the right property is a must.

The Property Essentials

This is absolutely crucial.

  1. Location
  2. Condition
  3. Zoning
  4. Local rental values


As close to downtown as possible – older neighbourhoods – larger properties – renters may not have transportation and are not going to be interested in an outlying neighbourhood in the farthest reaches of Calgary. Transit must be close by – bus or C-Train are a must. Schools and daycare if children are involved and young parents will seek this as #1 priority. Forget suburbs – properties here are small and will not appeal to renters or the city planners.


Is it a money pit. Don’t get drawn into a worn-out neglected property. It may look okay at first glance but check closer. A good property inspection by a trusted knowledgeable and licenced inspector is vital. Home repairs are costly and affect equity as the more you spend fixing up a nightmare property the less you have at the end.


Simple. Does zoning allow rentals. Check this out. Usually called R2 is important. If not, move on.

Local Rental Values

What kind of rent can you reasonably expect in the neighbourhood you’re considering. Calculate your return based on the rent you can expect. You should break even after mortgage and taxes.


Being a landlord is a real job and over time can reap great rewards. Never forget, it’s serious business and the more you research and learn the more likely you’ll succeed. A good property with good steady tenants are like gold. Check out my Landlord Tips on how to deal with renting your property.

Good luck and if you have any questions, please don’t hesitate to contact me on my cell 403-560-0810 – I’d be happy to help. To rent a bin call…


Call us 403-875-3300 and…

“Let go of your junk”

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