Dean Littlechilds

If you're looking for a way to increase your income, you may need to look no further than your own home. These days, more and more Canadians are turning their homes into income properties. An income property is a home that is bought or developed in order to generate income, typically by renting it out in part or in its entirety. Renting can be a financially rewarding experience, either to provide extra income, or to help pay off a mortgage. So if you're thinking of going the income property route, here are 10 important steps you should take:

1.Contact your local or municipal government to first determine if you are legally permitted to turn your home into an income property. Work with them to ensure the unit adheres to all existing building and fire codes.
2.Get to know the landlord-tenant relationship regulations in your province. These laws will give you a better understanding of your role and responsibilities as a landlord.
http://www.landlordandtenant.org/splash.aspx
3.Inform your insurance company about your plans for renting out space in your home and ask them if you require any additional coverage.
4.Get your home "renter-ready". From a simple change such as a fresh coat of paint to a major renovation, try and make your home look and feel as spacious, bright, and comfortable as possible. Your home should look appealing inside and out in order to attract potential renters.
5.Price and market your unit competitively. Scan the classifieds and visit rental websites to find out how much similar units are being listed for.
6.Conduct a screening process for applicants. Consider running a criminal background check, as well as a credit check, on prospective tenants.
7.Draft a written tenancy agreement. It may contain information such as: the date the tenant will move into the rental unit, the rent amount, the date rent is to be paid, what services are included in the rent (such as electricity or parking) and any separate charges, as well as the rules that you require the tenant to follow.
8.Consult a lawyer to look over the contract. Although not necessary, a lawyer can ensure there are no legal problems or issues with the contract before you present it to your tenant.
9.Request a minimum deposit of one month's rent in advance that may be used against any property damage or unpaid bills, depending on the laws in your province.
10.Have the tenant sign the contract. Ensure the tenant receives a copy and keep the original for your own records. Happy renting!

Looking back on the month of April, Medicine Hat and area real estate sales picked up a little as agents reported 110 residential units sold. This is up 12 from March's total of 97 residential units sold and down 81 from last year's April 2008 totals.

There was also an increase of 9 in new residential listings over last month, from 287 to 296, bringing the current total number of homes for sale to 852 compared to 745 in April 2008. This caused an increase in competition for buyers, which we can see reflected in the fact that 162 listings chose to lower their price in April.

If you have any questions or comments, feel free to contact me from my website at http://www.realtysales.ca/ or call (403) 866-9000.

Buying a House This Year?

If you’re planning on buying and selling in a buyers’ market, an important point to remember is this:

You will sell for less, but also buy for less, so the truly significant number is the difference between the two. Another thought to keep in mind is that it may be wise to sell first - before going house shopping. Any offer accepted on your home can be made subject to a sellers’ condition of finding a home to buy within a specified time frame. Ask me for more details at (403) 866-9000 or e-mail me at dean@realtysales.ca.

Why Buy Now?

Why is a buyers’ market good for buyers?

• Since more homes are for sale, buyers have more to choose from and more negotiating power.

• Home prices have come down significantly.

• Interest rates are low.

Prepare Now to Buy

"About two years ago, you could have had a score of about 620 or so to get a lender's best rate on something. Now, lenders are really looking at a rate of 760 at the least” said Kelli Grant with SmartMoney.com.

How can we improve our credit score?

• By eliminating bad habits like not paying bills on time and maxing out credit cards.

• By keeping in mind that closing accounts can hurt our score, especially if we cancel the oldest one on record.

• By reviewing our credit reports from Equifax Canada, NCB Inc. and TransUnion Canada to catch errors, such as accounts that aren’t ours, duplicate entry items and inaccuracies. Request forms available on my site www.realtysales.ca (bottom of News & Reports page).

The dramatically rising cost of home heating is a bothersome concern for most Canadians. Heating your home efficiently this winter will be the key to keeping your energy costs under control. Here are some quick, easy, and most importantly, inexpensive ways to maximize warmth and minimize impact to your pocketbook:

- Adjust Your Personal Thermostat: Wear a sweater and dress warmly around the house. When you're stationary - such as when watching television, using the computer or reading - you're most susceptible to a chill, so snuggle under a throw or blanket. Since hot air rises, change the direction of ceiling fans to blow warmer air back down to you. Counteract the icy influence of cooler floors with thick socks and slippers or possibly area rugs.

- Adjust Your Home Thermostat: It goes without saying that the less energy you use, the lower your heating bills will be. Set your thermostat at 21°C when you're home awake, 18°C when you're sleeping and 15°C when you're out of the house. Installing a programmable thermostat can reduce your heating bill by as much as 20 per cent.

- Let the Sun Shine In: During daylight hours, keep your curtains open and let the sun help heat your home naturally. To prevent this solar heat from escaping, insulate your windows with plastic film to reduce heat loss by 50 per cent. Also consider purchasing insulating curtains, which are curtains that have a foam thermal backing. They are more expensive, but pay for themselves within 7 years.

- Seal the Leaks: Caulk, seal and weather strip around windows and doorframes, baseboards, ducting and electrical outlets to save up to 20 per cent on your heating bill. Remember to close your fireplace flue when you're not enjoying a fire. Install a door sweep to resist against under-the-door drafts. Turn off the heat supply and close the door to unused rooms, such as a guest bedroom. Close interior doors leading to hallways or stairways to keep the heat where it's needed most.

Good fences make good neighbours – and the right fence can really make your yard. These ideas can help you find a style that works for your space. Choose your style:

- Private. A solid-board fence blocks an unattractive view completely, but it also cuts out light and breezes and can make you feel boxed in.

- Semi-private. This style, which can have subtle spacing, louvers or lattice to let in light, is friendly, comfortable, and makes your yard feel bigger.

- Open. Great if you want to enclose your property but don’t want to block it off visually.

Chain-link. Definitely the most cost-effective choice, but not necessarily the most aesthetically pleasing. It’s good for defining boundaries, keeping kids and pets in, and maintaining a sense of openness. If you’ve got a big yard and a small budget, this is the way to go.

Wood. Styles range from split rail and picket fences to board-on-board styles that look great on both sides and offer privacy, yet let in air and light. The downside to wood? It needs regular maintenance to look good over time.

PVC/vinyl. Vinyl fencing looks just like painted wood, but you’ll never need to paint it – all you have to do is clean it once a year.

Iron, aluminum or steel. Use it if you want an open, formal look. Aluminum, which looks like wrought iron but is less expensive, is the most budget-friendly choice. If cost isn’t an issue, custom ironwork is an excellent way to incorporate a fence or gate that’s completely unique.

Natural “fencing.” Hedges and shrubs reduce noise and dust better than a fence, are less expensive, and look lush and beautiful. You’ll just have to be patient while your “fence” grows in.

Be nice to your neighbours. Talk to them before you do anything. Choose a design that looks good from both sides, and make sure you know exactly where your property lines are.

Think outside the box. You may not need to surround your whole yard to get the privacy you want. Consider using a fence to screen in a sitting area or create an outdoor room.

A great-looking fence adds tremendous value to your home – whether it’s resale value or your own enjoyment of it. Think carefully about your needs and your personal style, then go ahead and build a fence you’ll love for years to come.

www.realtysales.ca