Sage Advice For Would Be Landlords!

from Canadian Real Estate Magazine

Everyone has heard at least one horror story of "the tenant from hell," so much, in fact, that dealing with renters is the biggest fear potential investors face, writes industry expert Paul Kondakos. But that threat can be easily mitigated. Owning an investment property is tantamount to owning a small business. To succeed in business, you have to ensure that you have a good client base that respects your business and pays bills on time. The same holds true for succeeding in real estate investing, you have to ensure that you have a tenant profile that respects the property and pays its rent on time. For most novice investors, the tenant profile is likely something that hasn't even crossed your mind, but it is actually one of the most important factors to determining your success. Some of it is tangible and some of it is intangible. As you become more experienced, you'll get a better feel of what makes a good tenant profile. There are two occasions when you have to pay particular attention to the tenant profile. The first is when you are purchasing a new investment property. Assessing the tenant profile has to be a consideration because a bad tenant profile can cost the novice investor time, stress and money. On a side note, for the more experienced investor a bad tenant profile isn't necessarily a bad thing as; (1) the experienced investor knows what they are getting into; (2) the property is usually priced accordingly, and (3) turning around the tenant profile can be a lucrative proposition.
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Is It Independance Day? ... or ... is Big Brother Watching You?

Have you heard the News?

ACORN (a US based association of low and mid income families) wants to amend the Residential Tenancy Act to force "slum" landlords to maintain their properties to a "Healthy Home" standard.




There are (at least) two participants in this discussion and the "Healthy Home" issue clearly pits landlords and tenant right advocacy groups in opposite camps!



Here are the points of view (as laid out by the two main participants):





BC Landlords Association


ACORN Wants to Amend the British Columbia Residential Tenancy Act!

What’s Happening?

A US based group now in Canada has started a new campaign called “Healthy Homes”

Healthy Homes?  That Sounds Like a Good Thing

The group is called ACORN.  Their campaign is to get the province to amend the British Columbia Residential Tenancy Act.

How Would that Create “Healthy Homes”?

ACORN’s Susan Collard claims to hear stories from tenants that are horrendous “all the time.”  She says one of the most important issues tenants face is trying to get repairs completed.

According to Collard, some tenants have fought their landlords for two and half years trying to get repairs done.

I’m a Landlord and I Do Repairs on my Properties ASAP!

Collard continued: “[They've] been battling landlords for two and a half years.  It has gone to Supreme Court and so far all [they've] gotten out of it is an eviction notice and the repairs still haven’t been done.”

So What is Her Proposed Solution?

She says one solution is proper enforcement.  Collard explains explains too often complaints won’t be taken seriously.  “To use what laws we currently have to the full extent.  You need reforms around the amount of time it takes to get repairs done.”

What Reforms are Proposed?

Collard adds the structure of the  Residential Tenancy Branch also needs to be re-jigged to ensure it  has both sides of the story.  Currently, Collard says the branch will only speak with the landlords.

Is The Government Going Along With Their Proposals?

The NDP has responded.

Let Me Guess, the NDP Wants more “Tenant Rights”

The British Columbia NDP housing critic Shane Simpson remembers visiting a rental property in his Vancouver riding.

Simpson recalls: “It had been left in disrepair for years and years,” he said. “The roof of the building collapsed.”

Does Simpson Want to Change the Residential Tenancy Act?

He believes the Act lacks tools for tenants to “push back” and battle “bad landlords.”

Simpson believes that after substantial renovations tenants should have the right to return to the rental at “fair rates.”  He also wants the province to be able to intervene in situations where municipalities are not taking action.

According to Simpson there is no doubt the Act needs to be reviewed, and changed.

So the NDP Agrees With ACORN?

It looks that way.  Which means the next provincial election is very important for BC landlords and investors.

 

ACORN

Members of ACORN are seeking a meeting with Rich Coleman, the minister responsible for housing in British Columbia. In March, the minister said he was "dead serious" about addressing the needs of tenants in BC. Now it's time to sit down with tenants. ACORN members will gather tomorrow - Friday, July 20th, 11 AM - at the Residential Tenancies Office at 5021 Kingsway in Burnaby to deliver this message. 




-----------------------------------------------------

Honourable Rich Coleman
Minister Responsible for Housing
Room 128, Parliament Buildings
Victoria, BC V8V 1X4

July 18, 2012

Dear Minister Coleman,

It is clear that the current dispute-based system of residential tenancy law is completely ineffective in ensuring tenants live in Healthy Homes. As the Minister Responsible for Housing, we are writing to ask that you take immediate steps

To address the inability of current residential tenancy law and provincial enforcement mechanisms to deal with the deliberate and systemic failure by private landlords of multi-unit residential properties to abide by their legal obligations to inspect, maintain and repair;
To address the failure of the Province to ensure that tenants not only live in Healthy Homes but have the right to live in Healthy Homes without fear of coercion, intimidation, harassment or abuse; and
To initiate a Provincial investigation into and audit of the conditions of buildings and welfare of tenants in buildings owned by derelict landlords, including investigating their residential tenancy businesses.
As you are aware, the situation at 12975 106 Ave, Surrey BC offers an extreme example of the failures of current residential tenancy law. The owners of this apartment building, a building inhabited by ordinary working people, are landlords with a large portfolio of properties throughout BC.

Landlords: You've Got Insurance ... But Does Your Tenant?

Think a tenant’s home insurance doesn’t affect you? Think again.

There are plenty of things to worry about when it comes to tenants, but few landlords require their tenants to take out home insurance – many don’t even ask if they have it. But there are good reasons to ask.
What happens if your tenant, distracted by their phone, leaves the water running and floods their bathroom? Not only is there damage in the bathroom and to their own belongings, but it’s poured down into the unit below, damaging more private property. Not only are you looking at a hefty bill, you could be named on a lawsuit for damages, which will at least require a lawyer’s time if not more.

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