All Forum Posts by: Roy N.

One of the nice things about being a landlord is you get to decided - within the bounds of the law - what you are willing to accept in your buildings.   Marijuana is legal here in Canada, but that is a separate matter from smoking in the property.  All of our properties are non-smoking irrespective of what is being smoked. Our lease is very clear that a first violation results in a fine and a subsequent violation will result in being served notice to vacate.

@Yi Zhao

Get to know the landlord tenancy law in your jurisdiction.   A copy of Residential Tenancies Act for Maryland can be viewed here.   Additional information here.

Follow the steps for remediation of such situations - section 8-402 in the Maryland statutes 

@Yi Zhao, does your lease prohibit smoking?  If so, issue a written warning calling their attention to the violation of the lease terms and let them know if it continues, they will be asked to leave.

@Travis Lucy

You could arrange the purchase from your mother now - at present fair-market value - without having to pull a conventional mortgage {at least right away}.   You could provide a downpayment and either structure it with your mother as the lender {your would make mortgage payments to her} or structure it as an instalment sale (you still make payments to your mother,  but the property would remain in her name until you finish ... or re-finance with a conventional mortgage).   The two are treated differently by CRA ... so you and your mother would want to consult with an accountant to decide which approach works best for each of you (mostly for Mom) and then with an attorney to draw-up the mortgage agreement.

In the first instance (mom the lender), the house would be in your name and you would be able to make any modifications (finish the basement) without it impacting your acquisition price.   In the latter case (instalment sale), you would write in the sales agreement that you will be assuming all maintenance and care for the house - and that you have the right to modify or improve it, which would allow you to finish the basement without impacting your purchase price.

@Mitchell Cochell

If you are walking the property than your initial analysis indicated is it potentially worth underwriting.

When you actually walk the property, you want to look at the primary building systems: envelope, plumbing, electrical, HVAC.   If you are new at this, bring along someone who is experienced (contractor, a seasoned investor, etc) and knows what they are seeing.   On an initial walkthrough, you are making a list of the immediate and near-term capital expenditures that are going to be required ... you'll then factor these into your underwriting and they'll influence any offer that you may make.

With a small property like a du/tri/quadriplex, the key things I am looking for on an initial walk through are:

1) Is it a conversion or purpose built;

2) Are utility services (electrical, gas, water, etc) common or separate to each unit.  Are common areas delivered/metered separately or tied to one of the units;

3) Is heat and DHW common or separate for each unit;

4) Type of fuel used for heating (current and any signs of a different former fuel type);

5) roof - type of covering, age and condition;

6) Fenestration: Type, age and condition of windows and doors. 

7) Envelope - insulation, cladding, etc.

8) Value add amenities: large decks; garages; outbuildings.

@Steven Wocknitz

The decision of 'if', 'how' and 'when' to hold real estate in a corporation will depend on your personal financial situation, your road map for the business and whether you will have partners in the venture.  Unless you are already personally in a top income bracket, or your funding is coming from a source other than your personal capital, there is typically little motivation to incorporate in the beginning.

It would be best to put together a bullet-form list of your near, mid and long-term goals and spend a little money to sit down with an accountant and attorney who can assist you in selecting an ownership model that fits your short term needs, but that can easily (and with little tax consequences) be evolved to meet your longer term requirements.

If you do hold property in a corporation, residential financing will continue to be based off your personal income and credit and you will be required to provide a personal guarantee. 

A good primer for you to read before authoring your goals and visiting an accountant or attorney is Steven Cohen and George Dube's "Legal, Tax and Accounting Strategies for the Canadian Real Estate Investor."

Leandro:

It depends upon which province you are in ... tenancy law (and its interpretation) varies by jurisdiction.  In Ontario, you have one of the most pro-tenant agencies in the country ... as @Luc Boiron pointed out, you cannot even compel a tenant to leave at the end of a term lease.

Here in NB, long-term tenant has a specific meaning in the legislation: a tenancy which has lasted 5yrs or longer.  Long-term tenants are provided additional rights (and lighter obligations) in the Residential Tenancies Act.  They can treat their lease as month-to-month (i.e. provide 1-month notice) whereas the landlord must provide 3-months notice.  Their rent cannot be raised higher than any other comparable unit in the building/area). And, finally, there is a restricted set of conditions under which the landlord may terminate the tenancy.

For tenancies less than 5-yrs in duration, the law and its application here in NB is quite even handed.   You are able to terminate a tenancy with appropriate notice.

We do qualify as a "snowy region" ... we've been ploughing for a few weeks already.

Similar to comments mentioned above, we plough the drives (and have walks shovelled) at multi-unit properties.

In contrast to above comments, we also plough the drives at our smaller properties (SFHS, duplexes, triplexes), but leave it to the tenants to shovel stairs, decks and walkways (the responsibility is written into the lease).   We have several student rentals and once upon a time, we did afford the tenant the option to clear the drive themselves.   We quickly learned that students will always opt for paying less, but won't actually shovel the drive (adequately) - come February the build-up of ice at the mouth of the driveways would be sufficient that their cars will hang-up.

Similarly, we handle mowing of lawns and raking of leaves.

With the assumption you are referring to residential lending and not commercial, the number of notes (secured by mortgages) a lender will entertain varies by lender.  Additionally, the "magic number" for a given lender will change from time-to-time dependant on the underlaying needs of their portfolios and current risk tolerance.   viz.  RBC will lend to a maximum of 5 notes/mortgages.   CIBC has recently tightened-up and lowered their limit into the 5-7 range ... previously, they would entertain up to 10 {residential} mortgages before applying strenuous liquidity requirements that discourage you from borrowing funds.

It is pretty straightforward to execute a change of assignment on the APS.  We have never had an issue with a lender when transferring a property being purchased into a corporation we control.   Obviously, you need to provide the lender with the necessary corporate documentation and make your intention clear.

To make things even more obvious upfront, we generally make offers inclusive of "and/or assigns" on the "buyers" line.