HawthorneVillager.com

We want to rent our brand new 30'' detached home (1790 sq ft) at Hawthorne Village for a short term lease (9 months). We were planning to move to that house in October and were very excited about it but unfortunately due to our work situation we cannot move there until middle of next year, plus our child needs to finish his schooling in Toronto until June 2015. It has lots of upgrades and excellent floor plan. Closing is mid September 2014 and will be available to rent from October 1st 2014. We were looking to get atleast $1900 but want good tenants that are clean and no pets smoking.

I want your feedback on first of all is advisable to rent it. Secondly, can we easily find good tenants for 9 months and for this price. Thanks

Hi there! $1900 is not that far off, you should be able to get $1750-1850, and based on that square footage it sounds like a Nobleton model? Did you get the 4 bedroom version? If so you can get on the higher end of that range.

One piece of advice, if renting it out short term with the plans of it being YOUR home after that, don't worry as much about the exact number, (1825 vs 1850), and instead be diligent with the tenant screening part. Get somebody you are 100% comfortable with since they will be living in and caring for your biggest asset.

Remember you should be installing window coverings so your tenant doesn't hack up your walls, and you'll need appliances in there too. Some of us agents have clients looking for short term stuff, and our reputations are on the line so that is your safest best. (Example, I have a wonderful client looking for a short term rental, but they only want 2-3 months so not a good fit for you - I wouldn't take a dime for it, but the point I am making is if short term, get the RIGHT tenant in there so you can feel good about taking possession when you're ready.

ONE more thing to point out... IMPORTANT!! PLEASE consult a tax lawyer or accountant first. If you turn this place into a rental, You may have to pay back the HST rebate portion (which is a HUGE chunk of money), AND your property will become an investment for that 9 month period it is not your principal residence, so you would in theory have to pay capital gains tax on the increase in value between the amount you bought it for, and its value when you take possession next year. If values go up considerably you might lose more money than you made. Definitely keep asking questions to make sure you're covered.

_________________
Fred De Carolis
FREDHELPS.COM or on Facebook
Thanks for your support in the
search for Milton's Favourite Realtor!
REVEL REALTY -- MILTON'S FAVOURITE REAL ESTATE BROKERAGE, as voted by YOU!!!

Thank you Fred D for your suggestions. You are right, getting good tenants is more important for us. I hope we find one. It is Nobleton but with a loft. We will be putting in stainless steel appliances as well as other things. Someone suggested to ask the builder if they could delay as well. I will find out with my accountant what impact renting will have. Thanks again and please keep in mind if you come across with anyone appropriate who wants to rent.

See if your builder is interested in working something out with you. They may have delayed someone's home so badly that they could offer to delay your closing and put someone else in your home in the interim.

With all of the tax implications, it would probably not be worth it for you to take possession and rent it out yourself. If you could at least delay the closing and not have to pay a mortgage for that period, you'd likely be in the same place but not have to worry about finding tenants... and the builder would be responsible for your home until you take possession. They may not even put anyone in your home... if other homes are delayed and you don't care about closing until 2015, they could put yours on hold and finish the others... they could use your home for something else.... like a heated construction office (they don't put your finishes in until after) or a model home and stuff it full of free upgrades for you.

Your best bet is to try to get your builder to delay the closing... taking possession and renting it should be your last resort in this case.

...but that's just me assuming a lot of things... you should really speak to an accountant or tax lawyer. There may be other things you can take advantage of and claim to negate the costs of renting/moving.

Thank you for the great suggestion. I have sent out an email to the builders. I hope they can delay it. I know though that they have just started to build both houses on each side. It might be hard for them to delay it. We really don't feel comfortable renting out unless I luckily find good tenants.

what is your contact? I'll give it to my friend who is looking.

Thank you Princess Beata! Your friend can contact me at irmaga.irma@gmail.com and give your or this forum's reference.

I asked the builder, they will not delay the closing date. They said its right on schedule