| Renting

Landlord & Tenant – Dos and Don’ts

Being a landlord is not always that easy, but we are here to help! Below are some Dos and Don’ts that you may want to consider.

Dos

  • Understand the RTA (Residential Tenancies Act)
  • Do a good job in presenting a product that attracts the desired demographic (i.e. working professional, young couple vs. rooming house). Targeting the right tenant will save you from a lot of hassle in the future.
  • Do your due diligence before committing. Remember that your tenants are living in your property, if anything needs to be fixed, being prompt will always work to your advantage.
  • Protect yourself and raise the rent every year per minimum allowed by Landlord and Tenant Board of Ontario (2018 = 1.8%)

Don’ts

  • Don’t charge a “security deposit” – it’s illegal under section 105 of the RTA (Security Deposit Limitation)
  • Don’t settle! As mentioned before, take care of your tenants and your property.
  • Don’t be cheap – go back to the point above, settling now = pain later.
  • Don’t be mean – a good Tenant is peace of mind and therefore a good investment.

 

Learning Lessons (Personal & Client Related)

  • Your Tenant is not your friend. Be nice, but not too nice. Remember that you are investing in your property and your tenant is the return.
  • You are running a “business” – every business has expenses, if you ignore, your business will fail.
  • We already said this: Don’t be mean – a good Tenant is peace of mind and therefore a good investment.
  • Don’t be too nice – Tenants have power, but so do you!
  • Remember to raise rents. If you haven’t raised your rent in years and then decide to sell your property, the cash flow won’t make sense to a new investor, making your property not as desirable.
  • Turnover is good – rents go up quicker!

 

Hiring a Property Manager?

Now you got a tenant for your property, maybe two or three. This renting business is starting to become your full-time job and you are questioning if you should hire a Property Manager. Here is our advice, summarized in few key points.

Yay if

  • You’re too busy
  • You don’t understand the RTA and don’t care to learn about it
  • You can’t be bothered
  • You own multiple investments outside of your primary residence (2+)

Nay if

  • You own only 1 investment property outside of your primary
  • You can handle it
  • You want to learn
  • Your margins are too slim (PM fee = 7-12% of GROSS RENT on average)

Other Seminar Notes:

Cash-flow vs Equity – Striking a balance

How to spot a good investment

Investing Solo vs Partnering

Preconstruction vs Resales – Benefits and Pitfalls

Airbnb – Hassle or worth it?

“Mini” or “Container” homes – Are they a thing?

 

Now that you know our dos and don’ts, it’s time to get into this business and start making some good money. Let us guide you.

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