7 Things to Know Before Renting Out Your House in Alberta
Written By Power Properties
So you're thinking about becoming a landlord? That's exciting! Renting out your property can definitely be a great way to generate some extra income, but let me tell you, it's not as simple as just putting a "For Rent" sign on your lawn and waiting for tenants to knock on your door.
We’ve seen way too many first-time landlords jump in headfirst without doing their homework, and trust me, that rarely ends well. For some landlords, having a tenant turned out to be way more than they bargained for. You don't want to be one of those horror stories where you end up with thousands of dollars in damages or months of unpaid rent.
The good news is that with proper preparation and the right knowledge, you can avoid most of the common pitfalls. If you're curious about how to rent your house in Calgary, Edmonton, Lethbridge, Medicine Hat or anywhere else across Alberta, this guide will walk you through everything you need to know before taking the plunge into property management.
1. Get Familiar With Alberta Rental Laws (Yes, They're Different in Every Province)
Provincial Laws Are Your New Best Friend
Here's something that catches a lot of new landlords off guard: rental laws aren't the same across Canada. What works in Ontario might get you in serious trouble in Alberta, and vice versa. Each province has its own residential tenancy legislation, and you absolutely need to know the rules in your area.
In Alberta, the key legislation is the Residential Tenancy Act (RTA). If you’re going to rent out and self-manage your property, you should know the RTA from front to back.
Documentation That Could Save Your Skin Later
You know what separates successful landlords from those who constantly deal with headaches? Proper documentation from day one. Here's what you need to provide your tenants in most provinces:
The official government-approved rental agreement (no handwritten napkin contracts, please!)
Clear written policies about rent increases, property entry, and maintenance requests
Full disclosure of any known issues with the property
Here's a pro tip: your landlord must give tenants at least 24 hours of written notice before entering the rental unit in Alberta. This means you can't just show up whenever you feel like it to "check on things." Plan your inspections and maintenance visits accordingly, and always respect your tenants' privacy.
2. Price It Right or Watch Your Property Sit Empty
Don't Just Guess at Market Rates
Pricing your rental is part art, part science, and a whole lot of market research. You can't just look at what your neighbor is charging and call it a day. The rental market moves fast, and what was accurate six months ago might be way off today.
If you're looking into how to rent your house in Edmonton specifically, here's some encouraging news: Edmonton's population is projected to grow steadily, and there are increased inquiries for 3-bedroom family homes and modern townhouses along with consistent occupancy in well-maintained suites with updated appliances and flexible lease terms.
The numbers are looking pretty good too. According to Liv Rent, as of January 2025, furnished units in Edmonton rent for an average of $195 more than unfurnished units, though by May 2025, furnished units in Edmonton rent for an average of $103 more than unfurnished units. This shows how quickly the market can shift, but also highlights that if you can offer furnished accommodation, especially for short-term rentals, you might be able to command higher rents.
When Property Rental Management Makes Sense
Here's where many landlords start considering professional help. In Edmonton, you're typically looking at about 10-12% of the monthly rent. I know that might sound like a chunk of change, but think about what you get in return.
Professional property management companies handle all the stuff that can keep you up at night: tenant screening (and believe me, this is crucial), rent collection, maintenance coordination, legal compliance, and yes, even evictions if things go sideways. Pro Tip for Landlords: Review and adjust your rental pricing annually based on inflation, supply and demand dynamics, and local market conditions. This approach ensures your property remains competitive while maximizing ROI.
3. Get Your Property Rental-Ready (It's More Than Just a Fresh Coat of Paint)
Safety First, Everything Else Second
Before you even think about showing your property to potential tenants, you need to make sure it meets all safety requirements. This isn't optional, and trust me, cutting corners here can lead to serious legal and financial consequences down the road.
Your property absolutely must have:
Working smoke detectors in every bedroom and common area (test them regularly!)
Carbon monoxide detectors where required by local codes
A heating system that actually works and meets local bylaws
Safe electrical systems and plumbing that won't cause problems
Secure locks and adequate lighting throughout the property
Here's something specific for landlords in major cities: as of April 30, 2025, the Heating Bylaw will be updated to ensure that a minimum temperature of 21°C is maintained in all areas of rental units from October 1 to May 15. Make absolutely sure your heating system can handle this requirement, because tenant complaints about cold apartments can quickly turn into legal issues.
Permits and Licensing (The Boring But Essential Stuff)
This is where a lot of new landlords get tripped up. In Edmonton, an operator/host must obtain both a Development Permit and Building Permit if there are 4 or more sleeping units rented out separately in a building. Even if you're just renting out a single-family home, check with your local municipality about any required permits or licenses.
Don't assume that just because you own the property, you can automatically rent it out. Many cities have specific zoning requirements and licensing procedures for rental properties. A quick call to your city hall can save you from expensive fines later.
Read also: 10 Essential Elements Every Alberta Rental Lease Must Include
4. Master the Art of Tenant Screening (Your Future Self Will Thank You)
The Screening Process That Actually Works
One of the most significant mistakes landlords make is rushing the tenant screening process. Not thoroughly vetting tenants can lead to issues such as late payments, property damage, and even costly evictions.
I can't stress this enough: good tenants are worth their weight in gold, and bad tenants can literally cost you thousands. Take the time to do proper screening, and use the same criteria for every applicant to stay on the right side of fair housing laws.
You have the legal right to ask for:
Employment verification and recent pay stubs
Previous rental history with contact information for past landlords
Credit checks (but you need their written consent first)
Personal and professional references
What you cannot do is discriminate based on race, gender, religion, family status, or other protected characteristics. Stick to objective financial and rental history criteria, and document your decision-making process.
Red Flags That Should Make You Run
Over the years, we've learned to spot certain warning signs during the screening process. Be cautious of applicants who:
Pressure you to skip the application process or rush into signing
Offer to pay several months in advance in cash (this might seem great, but it can be a red flag)
Have gaps in their rental history they can't explain
Provide references who all have the same phone number
Get defensive when you ask standard screening questions
Remember, some landlords have fallen victim to 'professional' tenants who know exactly how to game the system. Trust your gut if something feels off.
Security Deposits and First Month's Rent
In Alberta, you are required to hold a security deposit in a trust account, and adhere to provincial interest rates.
5. Insurance and Liability (Protect Yourself Before You Need It)
Why Regular Home Insurance Won't Cut It
Here's a mistake I see all the time: landlords thinking their regular homeowner's insurance will cover them when they start renting out their property. Nope! The moment you become a landlord, you need landlord-specific insurance coverage.
Your landlord insurance should cover:
Property damage caused by tenants (beyond normal wear and tear)
Loss of rental income if the property becomes uninhabitable
Liability protection in case someone gets hurt on your property
Legal costs if you need to evict a tenant or face other legal issues
The cost varies depending on your location and property, but it's absolutely essential. Don't even think about renting without it.
Understanding Your Legal Responsibilities
As a landlord, you can't just collect rent and forget about the property. You're legally responsible for maintaining the property in good repair and ensuring it meets health and safety standards throughout the tenancy. You also cannot disturb your tenant's peaceful enjoyment of the property, which means no harassment, no unnecessary visits, and no trying to force them out through intimidation.
6. Get Your Finances Straight (It's Not Just About Collecting Rent)
Tax Implications That Might Surprise You
Rental income is taxable in Canada, but the good news is you can deduct legitimate business expenses. Keep detailed records of everything related to your rental property:
Property management fees (if you hire a company)
Maintenance, repairs, and improvements
Property taxes and insurance premiums
Advertising costs for finding tenants
Professional fees (legal, accounting, property management)
A portion of your mortgage interest (if you live elsewhere)
The key word here is "legitimate." Don't try to write off personal expenses as rental costs. The Canada Revenue Agency isn't known for having a sense of humor about tax fraud.
Cash Flow Reality Check
Here's something many new landlords don't fully grasp: owning rental property involves ongoing expenses that don't stop just because you have a tenant. Budget for:
Regular maintenance and unexpected repairs (and trust me, they always happen at the worst possible time)
Property management fees if you decide to hire help
Vacancy periods between tenants (even great properties sit empty sometimes)
Emergency repairs that can't wait
Property improvements to stay competitive in the market
A good rule of thumb is to set aside at least 10% of your rental income for maintenance and repairs, and have enough cash reserves to cover at least three months of expenses if your property sits vacant.
7. Deciding Whether to DIY or Hire Property Rental Management
When Professional Help Makes Sense
Let's be honest: being a landlord isn't a passive income stream, despite what those late-night infomercials might tell you. It's a business, and like any business, it requires time, effort, and expertise to do well.
As Alberta, including Calgary and Edmonton establishes itself as one of Canada's most attractive multi-family markets, professional property rental management becomes increasingly valuable, especially for first-time landlords or those who don't have the time to manage properties themselves.
Here's what property rental management companies typically handle:
Finding and screening tenants (they usually have better systems than you do)
Rent collection and late payment follow-up
Maintenance coordination and emergency repairs
Legal compliance and documentation
Tenant relations and conflict resolution
Evictions if necessary (hopefully it never comes to this)
Choosing the Right Management Company
Not all rent management companies are created equal. Look for companies that:
Are properly licensed and insured in your province
Have solid knowledge of your local market
Offer transparent fee structures with no hidden costs
Provide detailed monthly financial reporting
Have experience managing properties similar to yours
Can provide references from other property owners
Respond quickly to both tenant and owner concerns
The DIY Route: What You're Signing Up For
If you decide to manage the property yourself, be realistic about what you're taking on. You'll be responsible for everything from 3 AM emergency calls about broken water heaters to dealing with difficult tenants who haven't paid rent in months.
Self-management can work well if you:
Live near your rental property
Have some handyman skills or good relationships with reliable contractors
Don't mind being "on call" 24/7 for tenant issues
Have the time and patience to deal with tenant screening and problems
Understand landlord-tenant laws in Alberta
Making It All Work: Your Next Steps
Renting out your house can be rewarding, but success doesn’t happen by accident. It takes planning, attention, and treating it like the business it is. Start by learning your local rental laws, making sure your property meets safety and legal requirements, and taking tenant screening seriously because one bad tenant can wipe out years of profit.
If you’re busy or live far from your property, professional management may be worth the investment. With the right preparation, realistic expectations, and ongoing attention, your rental can deliver steady income and long-term wealth. The most important step is putting the right people in your home, which is why good tenants are your most valuable asset. If you want to make sure you get it right from the start, reach out to a trusted property management company for guidance and support.
About Power Properties Ltd.
Founded in 1980, Power Properties has been providing hassle-free property management services to property owners, property investors and non-residents with homes in Calgary, Edmonton, Lethbridge and Medicine Hat for over 45 years. Our full-service property management includes everything from move in to move out, so you don’t have to worry about the day-to-day operations of your rental property. With a team of licensed professionals, years of experience, and award-winning service, you can rest assured that your property is in good hands.
