Tag Archives: multi-family residential

IN FOCUS: Investor Services The importance of property management services for investors

Any savvy investor knows that building a success property portfolio doesn’t come without its complications. From problem tenants and maintenance issues to volatile housing markets, the challenges can sometimes seem endless. As a result, utilizing the skills of an experienced property management company is crucial for investors who want their investments to run as smoothly as possible and yield the best possible return.

“A property management company takes care of a wide range of essential functions including all of the maintenance related to the property, whether it’s tapping into a network of contractors to  handle the repairs or snow clearing and grass cutting,” says Rob Kirby, President of Veranova Properties Limited. “A property management company also does all of the leg work involved with getting new tenants, including finding them, doing the background checks, and then managing them when they move in.”

Property management companies act on behalf of the landlord and shoulder the tasks that fall outside of most peoples’ comfort zone. Finding a suitable realtor, offering legal support services, and inspecting the property if it is empty are all functions that fall under the management company’s remit.

“Many investors do not realize that if you leave a property for a certain period of time and something happens, such as a flood, the insurance may not cover it because it was vacant with no one checking on it,” Kirby says. “The property management company might check the property something like every 48 hours to inspect for things like break-ins and water damage until they get a tenant, which can take a bit of time if you’ve just bought a property.”

Property management companies play an important role in helping investors safeguard and maintain the value of their properties. “In the current economic climate, and with interest rates rising, it is harder to find real estate and harder to qualify for borrowing, and that makes it even more crucial for investors to make sure they maintain their asset’s value,” Kirby says. “A good management company takes a preventative approach to maintenance, which means issues are dealt with before they become big, costly problems. It’s an approach that saves the investor both time and money.”

Source: Canadian Real Estate Wealth – Mar 20, 2018

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Thinking of becoming a landlord? Here’s what you need to know

Being a landlord isn’t without its challenges, but covering one’s bases in the following ways is bound to yield quality tenants and rents.

Every real estate professional understands the importance of location, and so should every landlord. Steve Arruda, a sales agent with Century 21 Regal Realty, has been a landlord for 18 years and advises taking one’s time performing due diligence on prospective neighbourhoods.

“You want to know where you’re investing in and what the demographics are in that neighbourhood, and whether there are universities and families there,” Arruda told CREW. “I’ve rented in depressed neighbourhoods, and it’s challenging. The price may seem really tempting, but then you attract a lot of renters who may not have the best incomes, and they could become problematic because there are issues each month with payment. Location is one of the most important things. Make sure you know where you’re investing and what the demographics in that neighbourhood are.”

If investing in a house rather than a condominium, ensure big ticket items like furnaces, wiring, roofs and windows are updated “because those are the things that are quite costly to repair,” added Arruda. “It’s good to have those larger items updated, otherwise if they fail, it’s always at an inopportune time like winter, and you’ll be left with an angry tenant.”

Beyond material concerns, Arruda says landlords invariably become arbiters in disputes between tenants, unfairly or not, and that managing personalities is a delicate art.

“When you have a house with four units, like a multiplex, it’s hard to get everybody to get along, and you’re their first line of defence,” he said. “So, managing personalities, managing expectations and being able to handle that
stress level are crucial, because for an inexperienced landlord, the first call they get because of an issue with a tenant or an issue with a clogged toilet can make their already stressful life even more stressful. Always be prepared for anything, whether issues with tenants or the property itself.”

Additionally, tenants need to be thoroughly screened, and Arruda recommends landlords run their own credit reports and confirm bank statements are real. Even calling an employer to confirm the information provided by potential tenants isn’t beyond the realm of the reasonable. As well, call their previous landlords to find out what kind of people they are.

Over 18 years, Arruda also learned that units with dishwashers, washers and dryers are not only highly sought after, they attract good-quality renters.

Renu Ashdir, a sales agent with iPro Realty Ltd., says clients for whom she seeks rental accommodations flock to buildings with amenities like gyms, but warns too many amenities—especially swimming pools—result in higher condo fees.

“If you’re a person in your 20s and 30s, fitness amenities are the most used,” she said, adding older tenants prefer the security of a concierge. “People care about the kind of neighbours they have in a building and whether or not there’s transit nearby.”

Most importantly, says Arruda, “Look after your renters and know rental laws.”

Source: Canadian Real Estate Wealth – by Neil Sharma12 Jan 2018
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