Eventually, kids grow up and go off to college. It’s a natural progression for them, and they’re going to need a place to stay while they’re getting a higher education. While a lot of students may opt for the traditional dorm room, others prefer to live off campus so they can concentrate better.
For landlords, this can be a boon, but there are some things to consider before you decide to rent your property to a student. Risky tenants come in many forms, and students are no different. If you’re going to entrust your property to them, you should know what to watch out for.
THE GOOD: PLENTY OF TENANTS TO CHOOSE FROM
If your property is located near a college or university, you’re in luck. Every year, new generations of kids are leaving home – many for the first time – and pursuing higher education. That means your property is in a prime rental location, and many students would undoubtedly be happy to rent it.
In fact, one of the greatest benefits of renting to students is the “turnover guarantee.” Once a student has completed their studies, they’ll move out and make room for another student to move right on in. If handled correctly, you can guarantee a steady revenue stream for years, if not decades.
THE BAD: LACK OF CREDIT HISTORY
Young people lack credit; that’s just a fact. Unless they started working at a very young age and penny-pinched their way into a 700+ credit score range, chances are they won’t have anything in the way of established credit or collateral. However, with no opportunities to build a credit score, many young people become stuck in a financial rut.
If your tenant has a good history, no criminal violations, and is backed by a co-signer, such as a parent, it may be beneficial to rent your property to them. Your rent should be guaranteed, while the student can build up a solid credit rating in the process. If the worst does occur, and a student needs to leave, chances are you will find another to take their place.
THE GOOD: HIGHER RENTAL FEES
Supply and demand is a reality when it comes to any area of economics, and renting real estate is no different. If your house is situated close to a college or university, chances are it’s not too far from other attractive amenities and services, as well. With everything centralized in one key area, the attractiveness of your property shoots up dramatically.
That means you are justified in charging higher-than-average rent. Doubtlessly there will be many students competing to rent your property. All you need to do is decide which one is the best candidate, and watch the money roll in.
THE BAD: IMMATURE BEHAVIOUR
College students may technically be adults, but they have a long way to go before they’re considered grownups. The pursuit of higher education also includes drunkenness, hedonism and rowdy parties, all of which can spell trouble for your property. If you are going to rent out to a tenant, you run the risk of such behaviour taking place.
Even if you have a no-party rule stipulated in the contract, some college students may still participate in heavy drinking, drug use or other behaviour that they believe will go unnoticed. Make sure to lay down the law early on, and schedule regular inspections to make sure nothing nefarious is going on inside the walls of your property.
THE GOOD: STUDENTS AREN’T FUSSY
Students are so thankful to strike out on their own that they probably won’t care much about anything else. While it’s always a good idea to maintain your property, renting to a student usually means that non-vital upgrades and repairs don’t have to be prioritized. That means skipping luxurious kitchen and bath upgrades, and keeping things as they are for the time being.
Over time, you may wish to upgrade your property, but there’s no sense investing money into something that isn’t necessary at that moment. Students will spend a significant amount of time either studying, or sleeping. When they’re not doing either of those, they’re out on the town with their friends.
THE BAD: THEY MAY BE LAZY
Many kids grew up with mom and dad taking care of everything, from the laundry, to lawn mowing, and that can become a problem when they finally move out. Some student tenants are so used to living the cushy life under their parents’ roof that they may not be able to grasp the most basic of property maintenance rules.
This can manifest itself in everything from noise complaints and icy porches, to vermin infestations. Be prepared to draft a contract which lays out the rules in a clear and explicit manner, and make sure to schedule regular inspections to make sure they’re upholding their promise. Otherwise, irresponsible tenants can make short work of your property, which can cost thousands of dollars to fix.
If you’re interested in making a lot of money by renting out your property to a student, make sure to look at all the details. Otherwise, consider offloading the responsibility onto a property management company. RentCore has a lot of experience renting properties to student tenants, and we know exactly what to look for when it comes to choosing the right one, and making sure they abide by the rules.
For more information on how RentCore can help you achieve a stress-free rental experience, contact us today!
Eventually, most people move. It’s just a common fact of life, and it pertains to the property rental market as much as it does people who own their own houses. Tenants who rent properties tend to stay for at least a few years, but there’s no guarantee they’ll stay for the long haul. Many move out so they can find a property closer to their job, cut down on travel times, or deal with a change of life such as a marriage, divorce, or the birth of a child.
That being said, you as a landlord depend on filling your property’s vacancy to maintain your cash flow, and lease renewals are a big part of that. Whether you’re renewing the lease of a tenant willing to stick around for a bit longer, or replacing said tenant with another prospect, it pays to follow some simple tips.
Depending on the length of your contract with a tenant, you should give ample notice of a lease renewal so that both parties understand what’s happening. Alternatively, you can opt for an automatic renewal of the lease if stated in the original contract. Typically, these kinds of automatic or manual renewals eschew the standard 1 or 2-year tenancy obligation in favor of a month-to-month rental contract.
If this is the case, it’s important to guard yourself against sudden vacancies. Tenants need to provide 60 days notice minimum before the lease expires if they wish to renew the contract, and both parties agree. Similarly, they must give 60 days notice if they intend to vacate the property before the one-year lease expires.
If either tenant or landlord is not satisfied with the conditions of a lease renewal, ample notice should always be given in writing. You as a landlord cannot enforce a renewal without the express consent of the tenant, and that includes their signature on the contract as well. If you’d rather forego a lease renewal option, a month-to-month tenancy schedule can be applied, provided the tenant agrees to give 60 days notice before vacating.
If a lease renewal coincides with a justified increase in rental fees, landlords should approach this topic carefully, and with sensitivity. Rates increases may be applied every 12 months based on the allowable limit set by the Ministry of Housing. All rent increase notices must be delivered to the tenant 90 days before they go into effect, and must be done in writing using proper forms. This does not apply to residential buildings, houses or condos built after 2018. In those cases, landlords can increase the rent every 12 months with no cap, provided there is 90 days notice given..
Regardless of what you decide, tenants should be informed as soon as possible about your decision. Most tenants are fine with a modest and acceptable rental fee increase, but a massive spike based on rising property or rental rates could prove to be a shock to the system. Notice must always be given so that tenants can make informed decisions. This gives them time to decide whether to stay or move, which will give the landlord ample time to find a replacement tenant. When in doubt, give factual and fair justifications for a rent increase to your tenant.
ANTICIPATE TENANT REQUESTS
Lease renewals don’t always operate one-sidedly. In fact, many tenants may wish to renegotiate their leases when the old one has run its course. This also includes the option for tenants to exercise their automatic renewal clause. In this case, never assume.
When renegotiating a lease renewal with a tenant, always ask the following:
Do I want to keep my existing tenant?
What are my limits within the legal framework?
What are the local and national vacancy rates?
Should I offer upgrades and perks for my existing tenants to get them to stay?
Make sure to perform all applicable research, while trusting your gut. Good tenants can be hard to find on your own. If you’re working with a property management company, you will have greater flexibility when deciding on tenant demands and requests during a lease renewal. Otherwise, you’ll have to take a risk.
YOUR REPUTATION WILL AFFECT A LEASE RENEWAL
If you’ve been a courteous, firm, but fair landlord who has garnered a great relationship with your tenant, you will have options when it comes to lease renewals. Oftentimes, a departing tenant may go to bat on your behalf, and start advertising the vacancy to their friends, family and coworkers. This is a social networking advantage that is totally free for you to enjoy.
If you’ve handled yourself admirably during the existing lease term by providing prompt tenant support for things like complaints, repairs and maintenance, you’re well on your way. Being a landlord means having a relationship with your tenant where both view your property as their own home. That’s the ideal situation, and it will pay dividends when the issue of renewal pops up.
Lease renewals don’t have to be a scary scenario. By following the above tips, you can renegotiate with tenants, or part ways on excellent terms without suffering a prolonged vacancy. This offers greater peace of mind, and a smoother property rental experience as a whole.
To make the process of lease renewals even easier, consider working with a property management company like RentCore. Not only will we navigate the intricacies of lease renewals, but we’ll also help find the best prospective new tenants, while keeping tabs on all the duties associated with being a landlord, so you don’t have to. Contact us today for more information.
Many would-be landlords interested in renting out their properties may struggle to figure out exactly what kinds of fees they can expect to be charged by a property management company. There is no defining set dollar amount, but rather, a series of variables that determine the final cost of the service.
Rest assured, the benefits of a property management company are worth every penny, especially for those who may not realize just how competitive and affordable their services are. However, it’s good to know how property management companies calculate their fees before deciding to work with one to rent out your property.
AVERAGE PROPERTY MANAGEMENT FEES
Depending on the nature of your property, your needs and location, and even the number of tenants renting out your space, a property management company will charge an affordable rate in exchange for great service. The typical range of fees is between 6% to 12% of the rental value of the property, which pertains largely to landlords charging mid to high-level rents. Often, a property management company will swap this for a flat fee in order to manage properties with a lower rental value.
Landlords may also own multi-unit properties with many different tenants, and a property management company may simply decide to charge a flat rate to manage all of them simultaneously, as opposed to variable rates per tenant. This is done largely for the convenience of both parties involved, and helps maintain smoothness and consistency of service.
Certain property management companies may charge marginal fees for extra services required only once in a while. These can include everything from finding and placing new tenants, to evictions and maintenance charges. Similarly, extra fees may be incurred when advertising your space to potential tenants, as this takes time and money.
These are considered standard fare, and of no real surprise, but landlords should be aware of anomalies that may arise in the rental process. One of these instances is the act of evicting a bad tenant, which is costly and time-consuming. A property management company can handle this problem much better than most, but charges may be billed for legal processes, notably in pursuit of a court eviction order, which can cost up to $2,600 on average in Ontario.
A good property management company knows the value of working with landlords to draft up the right package of services, for the best cost. There are lots of factors that both parties should talk over in order to come up with a mutually agreed price, but landlords should be aware that it’s usually standard practice for the property management company to charge for a flat range of services.
Outside of these basic services, landlords can pick and choose from a variety of ancillary services that are customized for their benefit. This can help save time, money and headaches, all for a nominal and acceptable rise in fees. When in doubt, always ask. Property management is all about the relationship between the company, the landlord and their tenant(s), and the better that relationship is, the happier everyone will be.
Setup fees are not uncommon when dealing with a property management company, and these tend to be upfront when the account is first created. This is largely administrative in nature, and designed to save time and money later on. By setting up your account properly, a property management company is ready to represent you, so that you can immediately shift your focus to other things.
BANG FOR THE BUCK
If you’re a landlord reading this for the first time, you’re undoubtedly surprised by how affordable and straightforward property management fees are. This is good news, as it can help make your decision that much easier. In return for the modest fees charged each month, property management companies deliver a wealth of services that can give you fantastic peace of mind.
Remember what a property management company brings to the table in terms of value – the knowledge and experience necessary to seek out and locate excellent and reliable tenants, shorter property vacancy cycles, less expensive legal complications and hassles, a robust rent collection process, etc. When added up, this presents an incredible level of value, especially for landlords who want to focus on their career, family or personal health.
Now that you understand the variables surrounding property management fees, you’re better equipped to know what to expect as you move forward. Here at RentCore, we’ve always prided ourselves on our ability to work with landlords with properties of all types, and flexibility is a key component of our strategy.
If you’re interested in renting out your property, but you don’t have the time to focus on managing it, we can help. We’d like to hear from you so that we can determine the best range of services to offer you. Contact us today!
Both landlords and realtors face a challenge when it comes to renting out properties to prospective tenants. It’s a time-consuming process to select the best candidates who are responsible and will pay on time, while respecting the property, and handling things like maintenance and repairs. For that reason, many opt for the services of a property management company that can take the load off. This is especially relevant for those who have multiple properties and growing real estate portfolios that need managing.
Finding the right property management company means examining your personal needs as a landlord or realtor, first and foremost. From there, it’s a matter of checking out various property management companies to see how much experience they have, as well as their track record of success. RentCore prides itself on being a top-level property management company serving the Greater Toronto Area, and we know the criteria necessary for success and client satisfaction. Read on to learn more.
IDENTIFY YOUR OWN NEEDS
Before you can begin to find a good property management company, you must first identify your needs. Are you an ambitious entrepreneur with very little time on your hands? Do you want a better work/life balance? Are you interested in a “set it and forget it” approach to renting out your properties for the sake of peace of mind? There are many factors to consider before you begin your search for the right company. It’s also important to identify any challenges and issues you’re facing with your current property management company, if you have one. Don’t stick with your current company out of convenience, or it may cost you in the long run. Instead, be prepared to switch companies in order to take advantage of better and more robust services, not to mention greater professionalism and results.
CHOOSE A LOCAL COMPANY
When searching for a property management company, it’s wise to choose one residing in the area of your property. Local companies already know the various real estate bylaws, not to mention trends that can affect everything from marketing, to tenant selection. Moreover, local property management companies have undoubtedly established ties with various businesses in the area, many of which provide repair and maintenance services at good rates. When it comes time to put your property up for rent, a good property management company will maximize exposure, simplify the process, and guarantee a seamless experience for the long term.
ASK ABOUT SERVICES
It’s important to choose a property management company with a solid list of helpful services that can take the stress and grind out of your daily routine. A good company knows how to handle all marketing and advertising for your property, as well as tenant selection, the drafting of contracts, and things like regular inspections. They’ll also handle rent collection, including tenants who are in arrears, while providing transparent and straightforward accounting and reporting records. A property management company should keep track of regular maintenance on your property, as well as any necessary repairs. And finally, 24/7 on-call emergency contact information is a must to guarantee peace of mind and platinum-level service.
DO YOUR HOMEWORK
The online world is a great place to learn more about any company, and it’s easy to find Google reviews, Facebook comments and other social media content that can shed more light into how a property management company runs. The best companies know the value of transparency, and they will strive to present themselves as human beings who are willing to treat you the same, as opposed to just another number. Service is a number one priority for great property management companies, which means it will inevitably show in client reviews. Analyze what they have to say, including any potential criticism, and whether the property management company responded to it in a professional and constructive manner. And of course, when in doubt, it’s always handy to check the Better Business Bureau to see if a property management company is virtuous and honest.
TRACK THEIR WORK
If you’ve decided to go with a particular property management company, you are now in a position to see if they are able to live up to their reputation. Great property management companies know the value of transparency when it comes to showing their work, which means regular reports that clients can easily decipher and digest. Most use advanced software suites to keep tabs on every element of the property management process, especially as they grow in size and stature. By accessing regular reports generated from their software suites, landlords and realtors can keep an eye on real-time results, month-per-month. This is very advantageous and convenient, as it allows for better record keeping, and a stronger sense of how your property – or properties – are faring in the rental market.
If you’re in need of a property management company that understands your needs, concerns and real estate goals, we recommend getting in touch with RentCore today. We’d like to hear your story so that we can determine how best to service your property needs.
Landlords living overseas who own property in other territories are frequently presented with a conundrum – how exactly do they keep tabs on the tenancy of their various properties? After all, they’re far removed, often in different time zones and unable to do things like scheduling inspections, meeting personally with new tenants, etc.
The solution is for these individuals to hire a property management company to do the job for them. These locally-sourced companies provide huge net benefits for overseas landlords who cannot be present to conduct important property management routines.
THE VALUE PROPOSITION
The simple fact is that overseas landlords have more challenges managing their properties due to their physical distance. This level of detachment can actually affect earnings potential, especially if the property depreciates due to damage or other factors related to tenancy.
As a result, many overseas landlords may opt to sell their properties, rather than deal with the inconvenience. In doing so, they lose on actualizing long-term earning potential, particularly if the currency conversion is not in their favor. Offsetting that issue involves hiring a property management company to do the job for them. The property management company acts as liaisons to collect rent, screen tenants, and keep tabs on the health and durability of the property. If something breaks, they’re on hand to bring in professionals to fix it. If tenants are in violation of the contract, property management companies can take the necessary steps to remove them.
Every property is a long-term investment with a lot of earning potential. Selling too early and disposing of these property assets from one’s portfolio is not a wise strategy, particularly if the property investor wants to maintain a steady and healthy revenue stream well into retirement age.
THE RISKS OF GOING SOLO
Some overseas landlords may attempt to take care of things themselves, or trust in their tenants, but that opens up an entirely new set of risks that should be avoided. For instance, the simple process of repairing a property can be daunting. Contractors may overcharge, cut corners, or overlook things that would normally be dealt with by a property owner on the scene.
Similarly, tenants can skip out on rent for months at a time, or may involve by-law inspectors if repairs are not addressed. It’s difficult enough for many landlords to deal with non-paying tenants as it is, let alone trying to manage these issues from overseas.
A property management company knows the ins and outs of tenancy, and how to deal with non-paying or bad tenants. They have access to the right legal channels, and an understanding of how to mitigate the problem before it spirals out of control. Without a property management team at their side, overseas landlords could unwittingly drag a problem out for months, or even years at a time, incurring costs whilst losing huge amounts of revenue.
The pressure may escalate to such a degree that overseas landlords simply decide to cut their losses and sell their properties, but they also may face further loss. If the property has been irrevocably damaged by a bad tenant, overseas landlords could see their property valuation decrease, and less bidders show interest to buy a property that does not show well. Suddenly, a property with a high valuation could take too many knocks due to the issues plaguing it, making it that much harder to achieve a fair asking price.
There are ancillary factors to consider as well, including finding good tenants to take over when other tenants vacate. A remote long distance landlord cannot meet prospective tenants, cannot conduct outgoing and incoming suite inspections, and cannot identify repairs that may need attention before a new tenant moves in.
It’s far better for overseas landlords to put their properties in the hands of an established and reputable property management company. The costs are negligible compared to the overall peace of mind they bring to a landlord, whether domestic or foreign. The less a landlord has to do to keep an eye on a property, the more time they have to invest in other things. If you are an existing or prospective overseas landlord with property to rent in Canada, please contact us at RentCore, and learn how we can take care of all the daily tasks of property management, so you don’t have to.
When it comes to renting out a property, tenants are expected to do their fair share of upkeep to maintain cleanliness and overall integrity. Many rental contracts come with these stipulations laid out, and they vary in scope. For instance, some contracts dictate that landlords will bring in third party companies to clear the snow or mow the lawn, but some do not.
Other contracts meet the tenant halfway, requiring them to do minor maintenance around and within the property to make sure it is kept up to code and spec. When it comes to educating tenants about the responsibilities of property maintenance, it’s wise to follow a few key steps.
BE THOROUGH FROM THE START
The key to avoiding any issues with tenants regarding property maintenance is to be clear and concise from the start. This begins with drafting a detailed rental agreement that doesn’t hide anything, and allows tenants to see exactly what they’ll be required to do. From there, the two parties can negotiate (if possible) and reach a consensus.
The last thing any landlord should do is obfuscate these responsibilities, or drop them on the tenant after the agreement has been signed. Doing so can lead to a host of legal headaches and unnecessary conflicts which can be avoided from day one. Tenants should know what is expected of them, and be allowed to ask pertinent questions before they sign on the dotted line.
FOSTER AN OPEN DOOR POLICY
Landlords do best when they open up the lines of communication with tenants. The last thing either party wants is to deal with the other on a consistent basis, but if the two can strike up a healthy working relationship, it will prevent more problems from popping up down the road.
Landlords should leave pertinent contact info with tenants – where they can be reached, if problems arise. Many landlords who do not have time to keep tabs on a property will seek the help of a property management company such as Rentcore. We know how difficult it can be to manage a property, especially if you’re a landlord with multiple properties or a busy work schedule. Regardless of who is in charge, tenants should know who to contact when they’re in a bind, or need answers to pressing questions regarding property maintenance.
PERFORM AN INSPECTION
Even after the rental agreement has been signed, landlords should refrain from sitting back and thinking that everything is going according to plan. Inspections are a way for landlords to make sure that everything is on the up and up. They might be able to spot needed repairs that inexperienced tenants may not notice.
Second, it gives the landlord the opportunity to see how the property is being treated. Tenant behavior may cause issues that can erode the quality and health of the property, such as putting mattresses on the floor without a bed frame. Other behavioral patterns can lead to problems with plumbing, insect infestations, mildew and mold growth, etc.
The caveat is that landlords must adhere to a strict set of tenancy rules determined by their respective locale. They cannot enter the property whenever they want, and must adhere to guidelines, such as providing 24 hour notice before showing up. Even then, there are stipulations landlords must adhere to, but it’s still possible to schedule inspections and make sure things are running smoothly.
Bear in mind that it may take only a single inspection to determine that the tenant is trustworthy, and will respect and care for the property. However, it’s still good to conduct the occasional inspection to make sure they’re sticking with it. From there, landlords can communicate with tenants and remind them of their responsibilities when it comes to property maintenance.
LEAD BY EXAMPLE
Some tenants, especially young ones, are inexperienced when it comes to property maintenance. Don’t hold that against them. Rather, look at it from the perspective of a teacher/student relationship, and use it as a means to educate them about how to perform said maintenance.
Most of the time, the maintenance in question is extremely straightforward, and merely requires time. Mowing the lawn is not rocket science, and once a tenant is shown how easy it is, they’ll be ready to tackle the task without your help the next time ‘round. The same principle applies across the board – lead by example, and your tenants will become self-reliant and proficient. Not only will this boost their confidence, but it will gain your trust.
CONSIDER THE TENANT’S NEEDS
Landlords should remember that not all tenants have the same skills, and some simply cannot perform certain tasks. For instance, those with heart problems or other physical ailments may not be healthy enough to shovel snow after a major storm. It then becomes an issue of compromise, and finding a workable solution.
Don’t reject a potentially great tenant just because they might have trouble with certain aspects of property maintenance. There are always workarounds, and it’s better to have a AAA tenant incapable of performing certain tasks, rather than a problem tenant who refuses to perform any task whatsoever.
Great tenants will abide by the wishes of the landlord when it comes to property maintenance, provided it’s agreed on beforehand, and both parties know what is expected. The more open the lines of communication are, the happier both landlord and tenant will be.
For more information on how Rentcore can help handle the intricacies of a rental agreement, while managing your property as a liaison between you and your tenants, please contact us!