Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How do I analyze rental income on a Riversdale property?

Analyzing rental income on a Riversdale property works the same way it does anywhere in Saskatoon: compare achievable rent against carrying costs, property tax, insurance, a maintenance reserve and any mortgage payment, then see what is left over, since the Saskatchewan REALTORS Association's sales data shows what properties sold for, not what they rent for.

Riversdale is one of the harder Saskatoon neighbourhoods to generalize about, because it has seen the most visible redevelopment of any area in the city over the past decade and prices vary block to block more than almost anywhere else, so a comparable two blocks away can be a poor guide to your specific property's rent or its resale value.

If the property carries a mortgage, run the numbers against CMHC's lending guidelines, roughly 39 percent of gross income on housing costs and 44 percent on total debt, even though those figures are built for owner-occupied borrowers rather than landlords, because a lender assessing a refinance on the property will apply a version of the same logic to the rental income you can document.

The number that actually decides whether a Riversdale property is a better rental or a better sale is specific to that address, not to the neighbourhood generally. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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