What's new with Owning Income property?

Why is Inventory Low, demand low?

2010-11-06T17:22:00.000-07:00

Of all times of the year, it would seem that one would like to find a "cozy nest" before the snow flies. Could it be the looming Christmas season and so many events, family obligations and a mad rush at work that prevents us from committing to a new abode?

Could it be the unpredictable economy that has us believing we may be without work in the new year so we better remain where it is "safe". OK, that tells us perhaps the reasons for staying where we are, but what could be the underlying reason for the low amount of apartments and houses on the market. Really, the choices in Barrie especially, stink right now.

Well we may need to open our eyes to the sluggish real estate market to give us the answer. Fewer sales, mean fewer available rentals simple as that.

Please tell me what you think is the reason.......

The Dilemmas facing new Income Property Owners

2010-06-23T08:27:00.000-07:00

It certainly is a sore spot for new property owners! A brand new tenancy has started and all ready the problems begin.

The incident may be very simple such as the tenant requesting that his/her rent cheque be held until the end of the week. Not a huge request and generally the owner will oblige. OK, the end of the week has come and now the tenant says "Can you just hang on until Monday?"

The owner cashes the cheque on Monday only to get it back on Friday as NSF. So now the owner goes to the tenant with this "bigger" problem. The excuses start such as "My dog needed to go to the Vet"., "My mother was in the hospital and I didn't get to the bank to deposit my cheque"...and so on.

If this sounds all too familiar, it is. The owner has made the big mistake of being "too nice". This will cost in the end, not only time, money but a poor future relationship with the tenant.

You can avoid all of these headaches by #1, being pro-active and submitting the N4 (an authorized Landlord/Tenant form to notify of possible eviction) to the tenant on the second day of rent not paid or just as soon as you receive a cheque back NSF.

Or #2, enlisting the services of an experienced and qualified Property Manager. Preventative maintenance does NOT cost, it only ensures the continuation of proper procedures and due diligence in protecting your valuable income property investment. Proper screening and background checks are no longer optional, they are part of a PM's most important processes to get you the "dream" tenant.

Remember it is called "Income" property not "Losses" Property. Don't spend needless money on legal services after a problem arises such as lawyers and paralegals. It will be litterly months before you are able to evict....and you can forget about recovering money once they leave your property. We are only talking a month of lost revenue if this process is handled correctly.

Check back for more important info for Landlords.......

The Heat is ON!

2010-06-04T12:58:00.001-07:00

The best memories come in the Summertime, do it right with your own touches!

Is the dog checking out the BBQ?

An apartment or house, it's the perfect time to reflect on your home experience at this perfect time of the year. Get right in there and show the neighbours this is "your home" by planting and adding statues, planters and outdoor furniture.

If you have a small balcony or patio, a tropical feel can be had with a few inexpensive additions. Check the rules for Barbecuing, your rental unit may not allow one. Even if this is the case, there are outdoor electric cookers which will satisfy.

Just a reminder, when leaving for a 2 week (or more) vacation, advise your landlord that you will be away for more than just a couple of days. He/she needs to be aware in case there are appliances or the mechanics of the unit that need attention. If you don't have someone to check in on your home, the landlord will be happy to pop in and make sure all is in order.

Have a great summer and good wishes if you have found that perfect "all year round" home that serves as a retreat for you and the family!

Comments or experiences on this topic are welcome!

Renaissance Property Management "the best little management company in town"

www.rpmKEY.com

Considering Rent-to-Own?

2010-03-06T07:35:00.000-08:00

Yes, I have my own formulas for this creative method of finally getting back to home ownership. This method is great for the owner who has more mortgage currently than the selling price but anticipates a solid market value within 2-5 years.

And what a blessing for the family struggling to regain their credit score while basking in the enjoyment of their own future home. This whole process can be negotiated to the satisfaction of both parties.

Just Ask Me!

A FUNNY THING HAPPENED ON THE WAY TO SHOW AN APARTMENT TO NEW PROSPECTS………

2010-01-17T09:37:00.000-08:00

The current tenant’s boyfriend

wouldn’t let us in!

So what did I do?

There is no way to reason with someone who is bent on keeping the door shut. The threat of calling the cops is usually the coward’s way out. Even though the tenant was informed of the showing by email, text and a phone message (he refuses to answer my calls). I could have challenged this person, but due to his total ignorance of the Residential Tenancies Act, there would be absolutely no reasoning with him or his boyfriend.

Just ask any property manager about the conflicts that are sure to arise from time to time. This is one that will be handled by the Landlord and Tenant Board. For future reference, once a tenant has given notice that he/she will vacate, it is only reasonable to expect that showings begin so that the unit does not lose income for the landlord. As a matter of fact, it is the landlord’s right only to “inform” the current tenant of the showing, not gain permission. I am a reasonable person and do not take anything for granted so I did inform the tenant of the showing starting three days beforehand. Perhaps his anger stemmed from the fact I would also be serving him with an N4 form (this is the preceding form to inform the tenant he may be evicted for non-payment of rent). It is also possible that the tenant is hiding something illegal. I took the high road and left the building.

To be continued…………..

January duldrums????

2010-01-10T10:29:00.000-08:00

For the Owner

Be pro-active with your units, maybe now is the time to assess any interior maintenance issues that should be addressed. You will show your residents that their comfort is important to you. Check on some of these improvements.

drafts from windows & doors
kitchen cupboard hinges
toilet maintenance
upgrading appliances
upgrading lighting

For the Resident

Be proud of your living quarters. Easy ways to brighten up your unit and the winter blahs is to add some decorating touches that won't cost a whole lot. A general rule of thumb is spending on decorating an amount equal to one month's rent.

Just let your landlord know that you want to paint, he/she may chip in for the purchase of the paint. Just a single wall done in a pop out colour will make a difference to your living/dining area or a bedroom
add bright cushions, removable window coverings
add shelving where it will be functional
a new piece of furniture from IKEA that is reasonably priced will add a touch of newness to your surroundings. Try something "off the wall" for a change.
brighten up dark areas with new lamps, there are some great January sales on now.

Any improvements will make your winter brighter and boost your relationship with your landlord. You will be in a better position to negotiate on the next lease renewal!

Moving or thinking of moving in December?

2009-11-22T05:55:00.000-08:00

This could be the time to get a better break from the owner/Property Manager. With December traditionally the slowest month for rentals (and sales for that matter).

To the Owner: This is a great time to offer an incentive to the prospective tenant. Let them move in December, but offer part of the month free OR a suitable Gift Card such as Sears, Home Depot, or for groceries. You will hook that respectful and open minded resident for your vacancy.

To the Renter: Don't be shy, ASK for a little break or a BONUS for moving at a time when the owner/Property Manager needs to fill a vacancy. I'm sure you will gain the respect of the owner/Property Manager and gain a welcome gift or discount.

2009-10-17T10:39:00.001-07:00

Keeping your Income Property “successful” and “profitable” is the goal of Property Management Companies.

“A good Property Manager is eager to help income property owners enjoy the benefits of ownership while losing all of the problems associated with rentals.” Rena Parno-McClung, director of RPM (Renaissance Property Management)

We have been listening to the growing number of rental property owners and understand that the hassles can be overwhelming to those who are involved with their own families, full time jobs and/or hobbies and sports. If only thinking of turning over that huge responsibility gives thoughts to losing more money, owners are urged to think the other way.

Professional property management companies constantly research rental rates and obtain the best rent. A large part of the service is to provide an accurate financial picture of the income property which will show how the fee is absorbed by the enhanced property values and the rent received. This has surprised many of RPM’s current clients.

“It’s just like receiving the property management service for FREE”

says a current client of RPM.

For the residents, having a Property Management Company to call on ensures that quick resolution to complaints will keep them as occupants for a longer period of time. A happy tenant makes for a profitable bottom line.

Renaissance Property Management specializes in one to four unit rental properties in Simcoe County. We treat all properties as we would care for our own!
“Keep the Income……..Lose the Hassles”

Prospective Tenant Stood You Up?

2009-07-25T09:43:00.000-07:00

Just one of the situations that landlords/agents must deal with. Never mind a date that stands you up, this one can hurt in the pocketbook.
You can look at this predicament this way.........if the person was not sincere enough to meet with you for a viewing of the rental space, do you really want that person as a tenant?
If the prospective tenant has communicated with you to let you know something has come up to prevent him/her from honouring the commitment.......that's the person who will notify you if something goes wrong with the rental equipment, plumbing, electrical, etc. And you do want to keep informed as to the condition of your rental. This is also the person who will give you a heads up if one of the post dated cheques he/she has given you needs to be held for a couple of extra days.
I certainly love people who "communicate". It avoids creating scenerios in your own mind.

If it can't sell, RENT it!

2009-05-15T08:43:00.000-07:00

Every day your house remains empty, you are losing money. Sure, sure you do not want any hassles if you do finally sell it. Think about a shorter term perhaps. There are so many situations out there with people on the move, it may be a good time to just give it a try. Check out my site for services from me or other well heeled Property Management Companies.
You do not have to go it alone. www.rpmKEY.com

Income Property for the New Investor

2009-04-19T06:05:00.000-07:00

Hey all you wannabe landlords!

Be timewise and look at the listings that abound. This is the best time since the early 80's that an investment in income producing real estate will net excellent passive income for years to come.

The ABC's of Property Management by Ken McElroy tells the complete story. When looking for property, don't just take in the esthetics because this is not being purchased for your home. And be wary of any property that's listed as "live in one unit and let the renters pay your mortgage. You will find out early on that you DO NOT want to live with the people who are paying you monthly rent. Be diligent in looking at the rent roll (this is the unit list with the monthly gross).

Another mistake that can be easily made is by overlooking property that may not cover ALL your monthly expenses. Although it is a bonus to have a positive cash flow, it may not necessarily show the equity building ability of the property say in 5 years or 10 years. Remember new investors are usually looking for that retirement nest egg because their RRSP just won't (or have dropped dramatically) cover your retirement years.

For more insight on this topic, please send me your questions, comments. I would love to hear from you!

So What is New with Income Property- for the Tenant

2009-03-31T08:31:00.000-07:00

As a property manager in the Toronto - Barrie area, I have seen rentals galore. So what should you look for in Rental Properties. Here's a check list you can use BEFORE you go viewing.

location, location, location - is it near transportation or major routes to work

confirm that it IS or is NOT a basement apartment, listings will show something like "lower level", "ground floor", "walk out" If you don't mind a basement apartment then it doesn't matter. (I will blog later on the pros and cons of basement apartments)

kitchen amenities, I can't count the number of so called kitchens created in places you wouldn't put a closet!

you CAN negotiate the price. If it is listed at $950. try giving a lesser "written offer" with a deposit cheque (perhaps $900.). It is hard for the landlord to say no to something in writing that has money attached. (but don't try and go for 1/2 price!)
Or you can ask for a small rebate if the landlord wants full pop. If you are dilegent with the rent payments, then he/she may be receptive to giving you back a rebate cheque at the end of the year (at Christmas when you need it most)
There are so many rentals, it is not just a home buyers market but a RENTERS market as well.