So You Want to be a Landlord on PEI

On PEI there are basically 2 types of landlords.some built in the 1800’s and with spectacular
There are conventional landlords that rent homesarchitectural features that have been or can be
and apartments to residents. Then there areconverted to apartments. These are potentially
specialized landlords that rent cottages andexcellent real estate investments.
summer homes to tourists and summer residents.If you choose to focus on summer rentals,
The marketing for these are completely differentcottages and summer homes then you will be
but much of the knowledge regarding thelooking for property outside the city probably in
business of rental is the same. You may have athe area of Cavendish or other North Shore
property that you are seeking to rent already.areas. This is the island’s prime tourist area.
This may be a home that you are leaving eitherAlthough there is a market for the simple
because you are upgrading your residence orcottage, if you intent to service this market you
because you are leaving the island and you wantwould be advised to buy a property with several
to keep your property as an investment.or more cottages as you will need the income
However if you are looking to purchase afrom many to promote your operation and net
property for rental then you have a few choicesan income. Otherwise buy a single luxury rental
to make.that will bring in $2000 per week or more in
If you are interested in the local rental marketrental.
and renting a home or apartment to an islandAs vacation property requires a lot more work
resident you should most likely be looking for aon the part of the landlord including garden, repairs
home in the city. Summerside offers a variety ofand maintenance as well as the weekly clean and
property. You could purchase a starter home.check out/check in procedure you might consider
There are many in the west end of Summerside.hiring a property manager experienced in holiday
These are small homes on small city lots.rentals to look after your property. They will
However they can start as low as in the 50’susually work on a percentage basis and many will
and go up from there depending on size, locationlook after the marketing of your property as well.
and condition. These can be rented with orThere are property managers available for
without utilities and create a positive cash flow aseveryday rentals as well but most of the rental
well as building equity. Remember that there aremarket in PEI would not afford you this option. If
some rent control restrictions and that rentingyou are renting starter homes you will have to be
without utilities will help to ensure that youyour own property manager. The same really
don’t get caught in the inevitable fuel oil priceapplies to the lower end cottage rental. It comes
increases – however you should note thatdown to a matter of economics. However PEI
rentals that include heating, particularly at this level,real estate is such a bargain when compared to
are more popular.other provinces that becoming a landlord is very
Summerside also offers larger heritage homes,appealing.