Maybe it is the high cost of buying a home. Maybe it is the feeling that wages are not keeping up with the cost of living. Either way there is some new information that suggests increasing numbers of Canadians – in particular millennial Canadians – are looking to become landlords.
A recent survey by one of the big banks indicates 26% of Canadian homeowners are, or are planning to become, landlords. That includes either a separate, income property or renting out space in a primary residence.
It is worth noting that millennials are far more interested in renting out properties than their older counterparts. Of homeowners aged 18 to 34 who responded to the poll, 47% either are, or want to be, landlords. Among millennial homeowners, 54% indicated that, if they were buying today, they would be looking for a home with a source of rental income. Just 25% of boomers stated a preference for rental income potential.
More than half of millennial homeowners, who are already landlords, have a separate income property, while about 40% are renting out space in their primary residence on either a long-term (1 year) or short-term basis.
A key reason for wanting rental income – cited by 26% of respondents – is to off set mortgage and other housing costs. About 30% of respondents said they wanted extra income to pay for non-essential items.
The survey suggests that the benefits of being a landlord are not insignificant. Those with a separate rental property claim an average monthly income of about $2,200, with costs of about $1,500. Those who rent out a portion of their primary residence report an average income of a little less than $1,300 a month on expenses of about $1,900. Many also see the tax advantages of a rental income as a significant advantage.