Montreal’s vibrant real estate market offers opportunities for investing in multifamily real estate for those looking to invest in multi-family properties.
Whether you’re a seasoned investor or a first-time buyer, this simple guide will walk you through the key steps to successfully navigate the process.

1. Location, Location, Location: is an old saying, but still applies in real estate investing

Montreal’s diverse neighborhoods each offer unique advantages. Consider these factors:

a) Proximity to Universities: Properties near McGill University, Concordia University, or the Université de Montréal attract strong rental demand from students year around (especially during the school year),
ensuring consistent occupancy.
b) Public Transportation: Easy access to metro stations and bus routes is a major draw for tenants, increasing your property’s desirability and potential rental income.
c) Downtown Core: Properties in the downtown core command premium rents all the time due to their central location and proximity to amenities, but also come with much higher purchase prices (ie low cap rates).
d) Up-and-Coming Areas: Explore neighborhoods like Rosemont–La Petite-Patrie, Villeray–Saint-Michel–Parc-Extension, Sud-Ouest and Verdun, which offer attractive investment potential with strong growth prospects (yes even today!).

2. Building Condition and Due Diligence:

a) Thorough Inspection: Engage a qualified building inspector to assess the property’s structural integrity, electrical and plumbing systems, and overall condition. This will help you identify potential repair costs after the purchase and negotiate effectively if there are serious issues that are discovered .
b) Environmental Report: Order an environmental assessment to identify any potential contamination issues that could affect the property’s value and pose risks to tenants (this is best done by the seller not the buyer since
the report should belong to the seller, but this is something that varies on a case by case basis).
c) Review Leases and Documents: Carefully examine existing leases, renewal letters, and expense records to understand the property’s net operating income and operating expenses.
d) Unit Sizes: Consider the unit sizes and layouts. Smaller units might be harder to rent in certain markets, while larger units can attract families or those seeking more space ie pay a better rent.
3. Financing and Legal Aspects:

a) Secure Financing: Obtain an opinion for a mortgage from a reputable lender. Explore different financing options and compare interest rates and terms.
b) Legal Representation: Engage a real estate lawyer or your notary to review the purchase agreement, conduct title searches, and ensure a smooth transaction.
c) The multifamily real estate brokers can prepare your offer to purchase, but some buyers prefer to have these offers checked by their lawyer / notary.
4. Negotiation and Closing:

a) Market Research: Conduct thorough research on comparable properties in the area to determine a fair offer price (again the multifamily treal estate broker can provide this information to you).
b) Negotiate Effectively: Be prepared to negotiate with the seller on price, closing date, and other terms during the offer process. These are best negotiated up front before having an offer accepted.
c) Finalize the Purchase: Once an agreement is reached, work with your notary to finalize the purchase and transfer ownership.
5. Property Management:

a) Tenant Screening: Implement a thorough tenant screening process to ensure reliable and responsible tenants.
b) Maintenance and Repairs: Establish a proactive maintenance plan to keep the property in good condition and attract quality tenants (this is a key step, problem tenants are an issue for you and your other tenants).
c) Rent Collection: Develop a clear rent collection policy and system to ensure timely payments (there are many software tools that can help with this step nowadays).
Investing in Montreal’s multi-family market is a rewarding venture for the patient and prudent investor.

By following these simple steps and conducting thorough due diligence, you can increase your chances of success and build a profitable real estate portfolio one property at a time.

Mikael Kurkdjian is a multifamily broker, with Baron Realty , you can reach Mikael at info@baronrealty.ca