All Forum Posts by: Luc Boiron

I would say it is best to get right into it and get started. I'm not sure that buying to rent is the best idea, as you won't be able to hold it long, and would need to either manage it long distance once you move, or sell it, with some costs associated with that. It won't give you much time to make money off the rental.

If you have the knowledge and skills, I would look for a flip. This could be SF or multifamily, but you should concentrate on increasing the value over the next year and a half, rather than trying to make money off the rental, as that is a longer term strategy.

 I agree Matt. Screening tenants is even more important in this tenant-friendly environment.

When I started, I tried being nice and giving my tenants a chance to catch up if they were late on rent. The result was that I would end up giving them an N4 notice for non-payment of rent when they were about 2 months behind. Of course, some tenants caught up quickly and it never got there.

Eventually, I started serving N4's almost right away (by the 5th of the month). If a tenant would say that they would pay me on Friday, or next week, I would still serve them the N4, and tell them that as long as they paid by the day they said, they wouldn't be evicted, but the N4 protected me in case I didn't get paid by that date. Also, if a tenant pays late almost every month, and I serve them an N4 every time, I can eventually evict a tenant with an N5 notice for regular later payment of rent, if it is appropriate.

 If you set a date fro a tenant to move out before a lease is signed, that is not valid. If you and a tenant agree after the lease is signed that the tenant will move out on a certain date, that is valid. One of the reasons that tenants cannot be evicted without cause is rent control. Rent increases for existing tenants are similar to CPI, but capped at a maximum of 2.5% per year. The fear is that after a few years, the landlord wants to increase the rent to market rents on an existing tenant, so evicts the tenant at the end of a lease term, and gets a new tenant at current market rents. They don't want this to happen, so a tenant needs to be evicted for cause.

Also, rent control only applies to buildings in existence prior to the early 1990's, so if you are renting a newer condo, rent control does not apply.

Everyone is complaining, but they are still landlords in Ontario. It's frustrating, but if you treat a tenant fairly from the beginning, and know and follow the RTA, you can still make good money as a landlord. If you evict a tenant for a reason that has nothing to do with a protected class, you shouldn't have a problem with wild accusations thrown against you.

Welcome @Matt L. Good Luck with the flips!

Congrats @Joe Splitrock! 

How much do you need to do to get it rent ready?

Do you have any pictures you can post?

Would this be a new build house, or multi-family?

In either case, you would get a little more rent at the beginning, as tenants are happy living in new places. Usually, the purchase price of the new builds means you would still not be making the highest returns on your investment, though new builds tend to come with less work, and lower maintenance / capex.

Basically, your cash flow would be lower, the appreciation can depend, some new build areas appreciate a ton, others don't do so well. New build houses are usually less of a headache for landlords though, just make sure you insure it well in case a tenant trashes your beautiful new house!

Multi-family is a little different. The value is priced on the cash flow, but does tend to trade at a lower cap rate when newer as the building would tend to be less maintenance. Again, lower capex/repairs, but that is taken into account in the net income for valuing the property, so you do tend to have less cash flow, but with less headaches.

Buying new homes and renting them out is one strategy for investors. I think this is a good strategy for investors who are ok with less cash flow in exchange for less headaches, and possibly for more appreciation, depending on the area.

On the other side, you have investors making great money in C and D areas, but they need to actively manage those properties with an iron fist. Those who can't or don't, can lose a lot of money, and the headaches may not be worth it.

The strategies may differ depending on where you are. I think in most parts of Ontario, and most parts of Canada, buildings sell for more than replacement value, so it can make a little less sense to get into older buildings.

Good luck with whatever you decide. 

Different people will take different approaches to this, but if the other tenants and co-signers are responsible for the 3rd tenants share, and they know it, then I would not worry.

It sucks they the 3rd tenant may not be good for the rent, but you do have solid recourse from the other 2 co-signers. If you allow them to move in without the last co-signers moving in, I would write up a short letter to say that they understand that the 3rd person has not had their co-signer sign, and they understand that they are responsible for all default in rent and repairs, not just their child's.

Good luck!

Looks like a big improvement.

Nice work!

You can take a look at local zoning by-laws, it might be easier to take an existing property and convert it into a duplex.

@Bernard Smith I'm not sure I understand the question. Are you currently renting the townhouse you and your wife are living in?

Do you mean that you have an LLC or other form of company that owns a rental property, and you are considering moving into it and renting it from your own company?

Some clarification would help.