All Forum Posts by: Kylene Heykants

Quote from @Alan Asriants:

I usually ask for 3 months proof of rent payment. This will show you how on time people pay. Then I would search the tenants names on google and facebook and see if anything fishy comes up. When doing a walkthrough of the property, how did they keep their unit? Was it clean? Organized? Is it easy to make accommodations to see the place or are they a pain to deal with? 

Usually if they pay on time and keep the place clean, then they should be decent tenants. Difficulty of showing the unit is a good sign of how much push back they will give. ALSO, learned this the hard way. If they have WAY too much stuff in storage at the building, it is a red flag for me. These tenants are harder to remove as they can be attached to the property and have too many things to move. The lighter the tenants is (in the same of how many personal belongings they have) the better.

 This is great. Thank you! 

Quote from @Stevo Sun:

Quote from @Kylene Heykants:

Hi BP community,

I recently got an accepted offer on a SFH in Alberta, Canada that has two separately metered legal suites. I'm currently performing due diligence with the property and need some advice. The property has two tenants currently in place which makes me nervous as I personally didn't screen them. This will be my first time managing a residential property which I'm assuming will take a bit more work than my commercial properties (I currently own and manage 4 commercial bays in the city I reside in). Because of this I want to make sure these tenants meet my standards. One of the units has a lease in place until early 2024, and I'm unsure of the other lease as I have not received the leases yet. When choosing my own tenants I would like to confirm their income, run a credit check and speak to past landlords but unsure if I can do this when the tenants are already in place.

Both suites are currently below market value (~20%) and I would like to do some work on the suites (light renovation) when they are not occupied.

What strategies do you use to ensure the current tenants are up to your standards when purchasing a property? Can I still run a qualification process when the tenants are already in place? Is there something in the due diligence phase that is a MUST to review that I may miss?

Any advice would be greatly appreciated! Love the BP podcast, their books and courses but rarely post on the forum. 

Thank you everyone!

Kylene

 In Alberta, you have to finish out the fixed-term lease. The Residential Tenancy Act (RTA) is fairly straightforward, so probably a good thing to familiarize. Always some risk in inheriting tenants, but I would ask to see the ledger to see if the tenants have been paying. Assuming you already walked the properties you have an idea of the conditions. Regarding renovations, one thing to watch for is if the building is pre-1990. At least in Calgary, you have to test for asbestos for pre-1990s.

I'm in Calgary, and happy to connect! 🙂

Good Luck! 

Hi Stevo,

I am currently reading the RTA so thank you for the clarification.  The property was built in 1956 so testing for asbestos sounds like it will be on my to do list renovations will happen during tenant turnover when the property is vacant which will be a while. 

Thanks for you response! 

 Kylene

Great advice! Currently working through a similar issue.  Thank you for your response.

Hi BP community,

I recently got an accepted offer on a SFH in Alberta, Canada that has two separately metered legal suites. I'm currently performing due diligence with the property and need some advice. The property has two tenants currently in place which makes me nervous as I personally didn't screen them. This will be my first time managing a residential property which I'm assuming will take a bit more work than my commercial properties (I currently own and manage 4 commercial bays in the city I reside in). Because of this I want to make sure these tenants meet my standards. One of the units has a lease in place until early 2024, and I'm unsure of the other lease as I have not received the leases yet. When choosing my own tenants I would like to confirm their income, run a credit check and speak to past landlords but unsure if I can do this when the tenants are already in place.

Both suites are currently below market value (~20%) and I would like to do some work on the suites (light renovation) when they are not occupied.

What strategies do you use to ensure the current tenants are up to your standards when purchasing a property? Can I still run a qualification process when the tenants are already in place? Is there something in the due diligence phase that is a MUST to review that I may miss?

Any advice would be greatly appreciated! Love the BP podcast, their books and courses but rarely post on the forum. 

Thank you everyone!

Kylene

Hello fellow BP members!

A lot of the educational content I find on BP regarding STR financing mentions a 10% down vacation loan. I have found this not to be the case in Canada, specifically Alberta. My mortgage broker told me it's a 35% down second home loan. Have other investors also found this? Any tips for financing my first STR that doesn't involve a partnership? I have access to capital but would like to leverage more so I have more purchasing power with my capital. Any tips help! Appreciate it.

Also, if you're a fellow STR investor from Alberta say hi! I'd love to connect :)

Cheers,

Kylene