I have purchased a 3-plex, now what? Montreal (Canada) area.
Member since 2021 · 28 posts · 6 votes
Hi all,
I am very happy, I am closing the deal on my first 3-plex in a couple of weeks, fully rented. I have learned about financing, crunching numbers, negotiation, etc, but now it's game time and I don't know where to start.
- Should I introduce myself / discuss with the tenant about the change? How to do that?
- The inspection showed that there are couple of stuff that needs to be fixed, especially on the ground floor. Not a big deal, around 5K. Can someone recommend me trustworthy contractors in the area?
- Should I purchase a real estate software to manage my accounting, RL-31, contract renewals, etc. Or is too much for a 3-plex?
- The ground floor rent hasn't been increased for the last 4 years. Can I already do it as soon as the improvements are done on that appartment?
Thanks.
Congrats @Jocelyne Sema! I can feel your excitement! I would say you should be able to manage a triplex without software. I always introduce myself to new tenants. It's nice to make the 1st move. They will know that the building is being sold and may be nervous and wondering what is going to change. It's nice if you can introduce yourself, let them know what you are doing or changing and give them new payment info. I also just bought a triplex and I will be having all of my tenants sign a month to month lease (i'm raising the rent) and will let them know what I will be providing (snow removal and lawn care) as well as asking them what work needs to be done in each unit. It's always a learning process so don't stress about the small stuff!
@Jocelyne Sema congrats on the purchase. Are you planning to self manage? If so, you should reach out to tenants. If not, your PM should do all tenant interactions. As far as rent increases go, here is the relevant info for Quebec: https://www.tal.gouv.qc.ca/en/... Work with your accountant on accounting needs and set boundaries; who is doing the tax submissions and book keeping? This will dictate what software (if any) you need.
Jocelyne,
Congrats on the Tri! I am U.S. (Arizona) based, one thing I have learned is to not get to close/comfy with the tenant. Make sure to keep it business. When I began my journey as a investor/self manager I made the mistake of being friendly with my tenants. I believe they used it against me to get sympathy and made it hard to either get out or increase rents. I personally don't like doing either, what I have found works really well is have one of my work associates even pay someone to pose as the Property Manager and make them the bad guy.
Could be different here but I think paid accounting software is too much for a tri. I like to use Stessa which is free for the time being. Easy to export to my CPA when needed.
Congrats again,
Andrew
Hi all,
I am very happy, I am closing the deal on my first 3-plex in a couple of weeks, fully rented. I have learned about financing, crunching numbers, negotiation, etc, but now it's game time and I don't know where to start.
- Should I introduce myself / discuss with the tenant about the change? How to do that?
- The inspection showed that there are couple of stuff that needs to be fixed, especially on the ground floor. Not a big deal, around 5K. Can someone recommend me trustworthy contractors in the area?
- Should I purchase a real estate software to manage my accounting, RL-31, contract renewals, etc. Or is too much for a 3-plex?
- The ground floor rent hasn't been increased for the last 4 years. Can I already do it as soon as the improvements are done on that appartment?
Thanks.
Congratulations! I'm closing on half of a duplex right now. It's has a legal suite in the basement that's already rented. I've introduced myself and everything to the current tenant. So I think it's a good idea. Everything else is up to you. But definitely get new lease agreements in place.
Im also trying to build out a Canadian community on Reddit, let me know if you are interested. I can share the link.
Good luck with everything!
I recommend you get property management and NOT ever introduce yourself as the owner. Once they know you then they think they can delay rent payment if needed because they know you, etc. Property management is worth it.
And Stevo - please send me the link for Redit for the Community you are building.
Best wishes Guys!
Im also trying to build out a Canadian community on Reddit, let me know if you are interested. I can share the link.
Good luck with everything!
Thanks Stevo! No problem, please share the link, I am always glad to be part of a real estate community. Congratulations to you too!
Thanks so much to all of you for your advice and encouragement! I am so excited, this is a new chapter and I want to do it properly. You gave me some great tips to get there!
Congrats @Jocelyne Sema! I can feel your excitement! I would say you should be able to manage a triplex without software. I always introduce myself to new tenants. It's nice to make the 1st move. They will know that the building is being sold and may be nervous and wondering what is going to change. It's nice if you can introduce yourself, let them know what you are doing or changing and give them new payment info. I also just bought a triplex and I will be having all of my tenants sign a month to month lease (i'm raising the rent) and will let them know what I will be providing (snow removal and lawn care) as well as asking them what work needs to be done in each unit. It's always a learning process so don't stress about the small stuff!
Hi Jocelyn,
Congratulations with your purchase ! I own a triplex with my wife and we do the property management ourselves. So far we did not run in to any problems with the tenants. But if we decide to expand we will probably hire someone. I am working for a contractor if you have a specified list of things that need to be done I can ask my boss to see if he can make a quote and see if we have the time to come and fix your problems!
Have a good day,
Matias
I would check out the "Real Estate Investors of Montreal" group on Facebook for recommendations on contractors and questions related to landlord-tenant laws and it's very location-specific.
I am working for a contractor if you have a specified list of things that need to be done I can ask my boss to see if he can make a quote and see if we have the time to come and fix your problems!
Thanks for this Matias, I am sending you a private email.
Hi all,
I am very happy, I am closing the deal on my first 3-plex in a couple of weeks, fully rented. I have learned about financing, crunching numbers, negotiation, etc, but now it's game time and I don't know where to start.
- Should I introduce myself / discuss with the tenant about the change? How to do that?
- The inspection showed that there are couple of stuff that needs to be fixed, especially on the ground floor. Not a big deal, around 5K. Can someone recommend me trustworthy contractors in the area?
- Should I purchase a real estate software to manage my accounting, RL-31, contract renewals, etc. Or is too much for a 3-plex?
- The ground floor rent hasn't been increased for the last 4 years. Can I already do it as soon as the improvements are done on that appartment?
Thanks.
Hi Jocelyne, congratulations! I just closed one condo in Gatineau and will have second one closed next month. My notary give me a letter to introduce myself as formal document to inform tenants that ownership has been changed. So I visit tenant and give them letter and my own contact info and confirm new method of paying the rent.
Quebec has strict rent control, and timeline to inform tenant lease change (including rent change. If they are on yearly lease, you need notify the, 3 month minimum in advance, so they have time to respond. Make sure you do your research. I think Chris motioned site already - TAL
For renovation work, you just have to give tenant advance notice as well. I think I saw something on TAL as well.
For now I am manage the property myself using excel to track expenses and income. I don’t have positive cash-flow yet, so I am mindful for all the expenses. Save anyway I can!
Hi Jocelyne, congratulations! I just closed one condo in Gatineau and will have second one closed next month. My notary give me a letter to introduce myself as formal document to inform tenants that ownership has been changed. So I visit tenant and give them letter and my own contact info and confirm new method of paying the rent.
Thanks a lot Yan and congrats on your investments too!
I have a favor to ask. I have talked to the notary about the letter you mentioned, as I believe it's a great idea. He told me to write a template and send it to him, he will sign it. Do you by any chance have a copy or a template of the introduction letter you have? You can of course delete all the confidential information on it. I just want to mimic the wording.
Thanks