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

How do I know if the rent will actually cover my costs?

Whether rent covers your costs is a math question: add the mortgage payment, property tax, insurance and a maintenance reserve, then compare that total to rent for the unit's condition and location. CMHC's lending guidelines cap most borrowers at 39 percent of income on housing costs, a useful ceiling for testing your numbers. Joel Dyck runs this math for clients.

Start with the fixed costs, because they don't move with the tenant: the mortgage payment at your actual rate, property tax billed by the City of Saskatoon, insurance, and a maintenance reserve for the furnace, roof and appliances that will eventually need replacing regardless of who is living there.

Then get a real number for the rent side, not a guess. A property manager or a handful of comparable rentals in similar condition and location will tell you more than a national or provincial average, since two units a few blocks apart can rent for very different amounts depending on condition and suite legality.

If the gap between those two numbers is thin or negative, selling outright may beat holding, and that comparison starts with knowing what the house is actually worth today. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

Still have a question?

Ask Joel directly. No form, no obligation, and a real answer even when the answer is that now is not the time to sell.