Cash Damming Rental Property

Say you own a proprietorship – a rental property – nothing too fancy, but a nice little place for which you have found good renters who pay on time every month and keep the house and garden tidy.
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You receive $2,000 in rent each month from your tenants and promptly use it to make the mortgage payment on your rental property, which also happens to be $2,000 per month.
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However, you, and likely thousands of other Canadians, have been making a costly mistake every month.
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You receive monthly rental receipts and promptly redirect them to cover your investment property’s mortgage payment.
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Money in, money out.
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While this seems the right thing to do – after all, you have a mortgage on your rental and have promised your bank to make monthly payments on it – it’s not ideal. You are missing out on thousands and thousands of dollars of benefits.