Calgary Investment Properties

Investing in a Calgary rental property

Calgary investment properties take many shapes: a condo with one tenant, a house with a legal basement suite, a townhome, or a home bought for family members to live in. Whatever you have in mind, it must work within the City of Calgary’s bylaws and Alberta’s landlord rules. Here are the rules Kelly reviews with investors before they buy. We do not give tax or financial advice, so talk to your accountant about your own situation.

The Residential Tenancies Act: landlord basics

The Residential Tenancies Act covers most residential rentals in Alberta. The Government of Alberta highlights these points:

• Kinds of tenancy. Tenancies can be periodic (usually month-to-month), fixed term (with set start and end dates), or a hybrid that begins fixed and turns periodic.
• Security deposits. At the start, a deposit can be no more than one month’s rent, and it cannot be increased during the tenancy. Within two banking days it must be placed in an interest-bearing trust account at an Alberta bank, credit union, treasury branch or trust company.
• Inspection reports. Both parties sign the move-in and move-out inspections, which must be done within one week of the tenant moving in or out. Landlords keep copies for three years, and without proper reports they cannot deduct for damage or cleaning.
• Deposit return. The landlord has 10 days after move-out to return the deposit with interest or provide an itemized statement of account.
• Entering the unit. Landlords need to give at least 24 hours’ written notice stating the time and reason, and can enter only between 8 a.m. and 8 p.m., except in emergencies or with consent.

Disputes can be taken to Alberta’s Residential Tenancy Dispute Resolution Service.

Buying with tenants in place

For a home that is already rented, request the lease, the deposit amount and the move-in inspection report before removing conditions. The Act says a new landlord cannot deduct for damage if the previous landlord did not complete a move-in report.

Secondary suites and short-term rentals

A secondary suite can create a second rental unit, but the City of Calgary requires a private entrance, egress windows, a separate kitchen and bathroom, and the proper permits and inspections. The City’s Secondary Suite Registry lists legal, inspected suites, and registry status passes to a new owner when the property sells. See our homes with suites page for details.

Nightly or weekly stays and other short-term rentals need a business licence from the City of Calgary. Before issuing one, the City requires a fire inspection, along with smoke and carbon monoxide alarms, emergency exit windows in sleeping rooms and, if a suite is used, an approved suite. In apartments and condos, you must confirm the condo bylaws permit short-term rentals.

Renting out a condo

Looking at townhomes or condos? Before buying, check the condo bylaws on pets, parking, leasing and short-term rentals. Go over the budget, reserve fund information and recent board minutes so the condo fees and any planned work make sense to you.

How Kelly approaches it

We assess Calgary investment properties the way a landlord will live with them. Is the suite legal? Are tenancy records in order? What do the bylaws permit? From there we compare areas with our community guides and, if student tenants fit your plan, nearby colleges and universities. Ask us for current Calgary investment properties that match your plan, and we will help check the paperwork before you commit.

Want to compare areas? Browse all 219 Calgary communities, or read about choosing a Calgary realtor.