We’ve done 1 reno and 6 new builds so far and we liked both for different reasons. Actually no, I’m lying. There’s only 1 reason we liked the reno and that’s because it took less time. While I agree it's a great reason because you can do more in a year and I'm not saying we didn't like the renovation process, I'm just saying there are several other reasons that make us want to go back to new builds when the market is right
1. Better layouts, overall designs and functionality A good layout design goes a long way on the property enjoyment scale. One of the reasons people look to move is because they just hate the layout of their home. Yes we could change the layout design during a rehab too but it usually never ends up as perfect as a new build and if it does, it usually means gutting everything to the bones. Plus you know, "New is always better" - Barney (Neil Patrick Harris), How I Met Your Mother
2. Energy efficiency
Keeping the utility costs as low as possible is a huge bonus in any home. Thanks to the building code constantly improving, the newer the home the less effort it takes to keep it comfortable. If utilities are cheaper, your tenants are likely going to want to stay longer.
3. Low maintenance It's no secret that a newer home will be less maintenance than an older one. Less things are likely to break or need changing. Just the first week after construction that we usually get a few calls from our tenants for things that need adjusting. After that everything runs smoothly with barely any calls until about year 5. On the 5th year we notice things start to need some tune up, but nothing major.
4. Knowing exactly what's behind each wall It truly helps us a lot to better service maintenance issues when we know exactly what's where and why it was put there to start. There's just zero guessing games and it makes trouble shooting a piece of cake.
5. Purposely built This applies especially when building small multi families. It’s nice having full control of the important stuff like the fire and sound separation between units, or of each unit having their own meters, their own mechanical systems and their own entrances. It makes everything easier, especially while managing the tenancies.
6. No inherited tenants To this day we haven’t yet had to inherit someone else’s tenants because our properties have always been empty. Managing tenants that I didn’t get a chance to screen myself, not knowing anything about them or how they would treat a new landlord is not really something I have interest in learning how to do. Although I wouldn't let this stop me from passing on a good deal but so far I’ve just been spoiled with this.
7. We help with the housing shortage
Canada in general faces a pretty big housing shortage. Every province has their challenge and here in Ontario affordable housing is becoming increasingly scarce. We help scale up that supply by building new right outside the city. It makes us a more affordable option than rental rates within the big city and still provides a new, safe and clean home.