Month 5: Property Management Basics
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Month 5: Property Management Basics

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Some considerations for managing your property and/or your property manager!

Some considerations for managing your property and/or your property manager!

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  • 1. Surrey Real Estate Investment Club REI with a Cause! www.AspireRealEstate.ca Our Sponsors
  • 2. Where Are They ? REI with a Cause! www.AspireRealEstate.ca
  • 3. Agenda REI with a Cause! www.AspireRealEstate.ca 7.00-7.15 Arrivals and networking 7.15-7.20 Introduction 7.20-7.55 Lomash – Property Management 7.55-8.15 Break and networking 8.15-8.45 Marc – Multi-family investing 8.45-8.50 Lomash – Wrap-up Next Meeting: Wednesday 26th June at 7pm. 8.50-9.15 Networking
  • 4. Surrey Real Estate Investment Club REI with a Cause! www.AspireRealEstate.ca
  • 5. ANGRY BIRDS not as fun in real life REI with a Cause! www.AspireRealEstate.ca
  • 6. The Legal Stuff… The information contained herein (the “Information”) is intended for general informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either Aspire Holdings or any of its affiliates.   Views expressed in this presentation are based on research materials available from sources that Aspire Holdings (d.b.a. “Aspire Real Estate”) considers reliable but neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information.    All real estate opportunities come with varying degrees of risk and past performance is not an indicator or guarantee of future results. Prices can go up or down and current performance may be lower or higher than any performance data quoted for comparisons. REI with a Cause! www.AspireRealEstate.ca
  • 7. Past Meetings REI with a Cause! www.AspireRealEstate.ca 1. Strategy & Getting Started 2. The RE Cycle and Selecting An Investment Area 3. Evaluating Investment Properties 4. Funding Your Next Properties
  • 8. Tonight’s Topics REI with a Cause! www.AspireRealEstate.ca Property Management Lomash Regmi lomashregmi@gmail.com Multi-Family Investing Fundamentals Marc Ramsay Majura Properties LLC
  • 9. Little Bit About Me REI with a Cause! www.AspireRealEstate.ca Early Childhood Landlording
  • 10. Binary Overload REI with a Cause! www.AspireRealEstate.ca
  • 11. Almost Missed This Jackpot REI with a Cause! www.AspireRealEstate.ca
  • 12. Uh oh ! REI with a Cause! www.AspireRealEstate.ca
  • 13. Get Educated REI with a Cause! www.AspireRealEstate.ca
  • 14. Real Estate Business REI with a Cause! www.AspireRealEstate.ca Strategy Management Exit Financing
  • 15. Property Management Activities REI with a Cause! www.AspireRealEstate.ca Property Tenants Money Paper
  • 16. Components Of A House REI with a Cause! www.AspireRealEstate.ca
  • 17. Doing Your Repair And Maintenance REI with a Cause! www.AspireRealEstate.ca Pros: ● Save money ● Gain experience ● Know your parts and procedures Cons: ●Have to buy tools ●Spend time learning new skill ●May take longer to finish the job ●Repairs may look amateurish ●Is this the best use of your time?
  • 18. Home Maintenance Checklist REI with a Cause! www.AspireRealEstate.ca
  • 19. Average Lifespan REI with a Cause! www.AspireRealEstate.ca Roof: 20-25 years Heating system: 25 years Refrigerator: 20 years Freezer: 20 years Clothes dryer: 18 years Range/oven: 18 years Room air conditioner: 15 years Clothes washer: 13 years Water heater: 13 years Central air conditioner: 12 years Dishwasher: 12 years
  • 20. Tenant Profiles REI with a Cause! www.AspireRealEstate.ca 1. Students 2. Professionals / Roommates 3. Singles 4. Professional Couples 5. Corporate / Relocation Employees 6. Family
  • 21. The BC Human Rights Code REI with a Cause! www.AspireRealEstate.ca Prohibits Discrimination on these 16 grounds: 1. race 2. colour 3. ancestry 4. Place of origin 5. Political belief 6. religion 7. Marital status 8. Family status 9. sex 10. Mental disability 11. Physical disability 12. Sexual orientation 13. age 14. Criminal or summary convictions 15. Lawful source of income 16. retaliation Code does not apply when looking for a roommate
  • 22. How To Find Best Tenants REI with a Cause! www.AspireRealEstate.ca ● Keep property in perfect condition ● Research the market rents ● Place enticing ads, with link to online form ● First filtering: Is the form completely filled? ● Invite your top picks to view unit during a 2 hour open house ● Have them fill lease application ● Do due diligence on each lease candidate ● Choose the best application
  • 23. What Information Can Be Collected? REI with a Cause! www.AspireRealEstate.ca Id Driver's license Pay slip T4 Employment letter With consent: credit report, criminal report, credit card number
  • 24. Due Diligence REI with a Cause! www.AspireRealEstate.ca Call references Check social media: Facebook, Twitter, Linked In, Google search Verify employment history Verify tenancy history Use reporting services: credit report, criminal report
  • 25. Verify Employment History REI with a Cause! www.AspireRealEstate.ca When did the employee start? What is their position? Are they full time or part time? What is their current wage? (Check against the application and pay stubs) Is there any garnishment on wages?
  • 26. Verify Tenancy History REI with a Cause! www.AspireRealEstate.ca When did he/she rent from you? How long did this person live in the rental? Did he/she pay the rent on time? Did they have any pets? Were there any complaints from other Tenants? Was there any damage? Was the tenant respectful to you and the property? Did the Tenant give you proper notice to end the tenancy? Would you rent to this Tenant again?
  • 27. Credit And Rental History Reports REI with a Cause! www.AspireRealEstate.ca Rental History Report http://www.rentalhistoryreport.com Credit Info Canada http://creditinfocanada.ca Rent Check http://www.rentcheckcorp.com Tenant Verification http://www.tenantverification.com
  • 28. Strategies To Keep Good Tenants REI with a Cause! www.AspireRealEstate.ca Send tenant welcome letter, along with a copy of rules and conditions for easy reference Be professional in handling tenant issues Make repairs promptly Present appreciation letter / gift cards / gift baskets Offer utility rebate for on-time rent payments Offer referral bonus for more good tenants Increase rents according to market condition. Up to a maximum percentage once a year, need 3 months advance notice
  • 29. Problem Tenant Remedies REI with a Cause! www.AspireRealEstate.ca 10 day eviction notice for unpaid rent or utilities 1 month eviction notice required for 1. Persistently late rent payments 2. Too many people living in the unit 3. Substantial interference to others (including by visitors or pet) 4. Illegal activity in the property 5. Wilful damage of property 6. Not done required repairs to damages 7. Sublet without landlord's consent
  • 30. Contd... 1 Month Eviction Notice REI with a Cause! www.AspireRealEstate.ca Breach of a material term of the lease Knowingly gave false information to prospective tenant or purchaser of the property Security or pet damage deposit was not paid within 30 days as required by the tenancy agreement Landlord cannot unilaterally change locks or seize or throw tenants' stuff out on the streets because they complained or did not pay rent on time.
  • 31. “No-Fault” Tenant Eviction REI with a Cause! www.AspireRealEstate.ca Property to be used by caretaker, manager or superintendent of the residential property Landlord, spouse, in-laws, or children of landlord or spouse to move into the property Purchaser, spouse, in-laws, or children of purchaser or spouse to move into the property Permit acquired for demolition or extensive repairs and renovations Conversion to strata lots or not-for-profit co-op housing Conversion to non-residential use 2 months notice, 1 month rent refund to the tenant.
  • 32. Money Management REI with a Cause! www.AspireRealEstate.ca Be on top of your money - security deposits, rent payments, repair and maintenance budgets, mortgage, taxes, utilities Interest has to be paid on collected security deposit. Currently at 0% Get vacating tenant's new address to refund the security deposit Charge for any cleanups or damage repairs and send an invoice if security deposit could not cover the total expense
  • 33. Paperwork Management REI with a Cause! www.AspireRealEstate.ca Be on top of your paperwork - repairs, expenses, receipts, invoices Tax time: Paperwork for your bookkeeper, accountant Application forms, lease forms, warranties, inspection logs, manual Tenant communications: notices for rent increase, late/unpaid rents, lease termination, subleasing
  • 34. Paperwork Management REI with a Cause! www.AspireRealEstate.ca
  • 35. Electronic Receipts Management REI with a Cause! www.AspireRealEstate.ca
  • 36. Paper Management REI with a Cause! www.AspireRealEstate.ca
  • 37. Property Management Options REI with a Cause! www.AspireRealEstate.ca Dedicated Property Manager Leasing Services HandymanGeneral Contractor Various Trades Complete Self-Management Copywriters Marketing FirmAdvertising Agency Professional Photographer Legal Aid Lawyer Bookkeeper Accountant
  • 38. Property Management REI with a Cause! www.AspireRealEstate.ca Self - Management OR Managing The Property Manager
  • 39. Hiring And Managing A Property Manager REI with a Cause! www.AspireRealEstate.ca
  • 40. Agenda REI with a Cause! www.AspireRealEstate.ca 7.00-7.15 Arrivals and networking 7.15-7.20 General Introduction 7.20-7.55 Lomash – Property Management 7.55-8.15 Break and networking 8.15-8.45 Marc – Multi-family investing 8.45-8.50 Lomash – Wrap-up Next Meeting: Wednesday 26th June at 7pm. 8.50-9.15 Networking
  • 41. Feedback, Prizes and Action plan! Questions or comments? Please let us know! Next meeting Wed. June 26th @7pm Summary: www.AspireRealEstate.ca/blog/ REI with a Cause! www.AspireRealEstate.ca • Find a new person in the group and tell them what you are going to do in the next month to achieve your goal! • Follow up at next SREIC meeting.