Month 5: Property Management Basics

Surrey Real Estate Investment Club

REI with a Cause! www.AspireRealEstate.ca

Our Sponsors

Where Are They ?


Agenda


7.00-7.15 Arrivals and networking

7.15-7.20 Introduction

7.20-7.55 Lomash – Property Management

7.55-8.15 Break and networking

8.15-8.45 Marc – Multi-family investing

8.45-8.50 Lomash – Wrap-upNext Meeting: Wednesday 26th June at 7pm.

8.50-9.15 Networking

Surrey Real Estate Investment Club


ANGRY BIRDS

not as fun in real life


The Legal Stuff…

The information contained herein (the “Information”) is intended for general informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either Aspire Holdings or any of its affiliates. Views expressed in this presentation are based on research materials available from sources that Aspire Holdings (d.b.a. “Aspire Real Estate”) considers reliable but neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. All real estate opportunities come with varying degrees of risk and past performance is not an indicator or guarantee of future results. Prices can go up or down and current performance may be lower or higher than any performance data quoted for comparisons.


Past Meetings


1. Strategy & Getting Started2. The RE Cycle and Selecting An

Investment Area3. Evaluating Investment

Properties4. Funding Your Next Properties

Tonight’s Topics


Property ManagementLomash [email protected]

Multi-Family Investing FundamentalsMarc RamsayMajura Properties LLC

Little Bit About Me


Early Childhood Landlording

Binary Overload


Almost Missed This Jackpot


Uh oh !


Get Educated


Real Estate Business


Strategy

Management

Exit

Financing

Property Management Activities


PropertyTenants

Money Paper

Components Of A House


Doing Your Repair And Maintenance


Pros:●Save money●Gain experience●Know your parts and procedures

Cons:●Have to buy tools●Spend time learning new skill●May take longer to finish the job●Repairs may look amateurish●Is this the best use of your time?

Home Maintenance Checklist


Average Lifespan


Roof: 20-25 years Heating system: 25 years Refrigerator: 20 years Freezer: 20 years Clothes dryer: 18 years Range/oven: 18 years Room air conditioner: 15 years Clothes washer: 13 years Water heater: 13 years Central air conditioner: 12 years Dishwasher: 12 years

Tenant Profiles


1. Students2. Professionals / Roommates3. Singles4. Professional Couples5. Corporate / Relocation

Employees6. Family

The BC Human Rights Code


Prohibits Discrimination on these 16 grounds:

1. race 2. colour 3. ancestry

4. Place of origin

5. Political belief 6. religion

7. Marital status 8. Family status 9. sex

10. Mental disability

11. Physical disability

12. Sexual orientation

13. age 14. Criminal or summary convictions

15. Lawful source of income

16. retaliation

Code does not apply when looking for a roommate

How To Find Best Tenants


● Keep property in perfect condition● Research the market rents● Place enticing ads, with link to online form● First filtering: Is the form completely filled?● Invite your top picks to view unit during a 2

hour open house● Have them fill lease application● Do due diligence on each lease candidate ● Choose the best application

What Information Can Be Collected?


IdDriver's licensePay slipT4 Employment letterWith consent: credit report, criminal report, credit card number

Due Diligence


Call referencesCheck social media: Facebook, Twitter, Linked In, Google searchVerify employment historyVerify tenancy history Use reporting services: credit report, criminal report

Verify Employment History


When did the employee start?What is their position?Are they full time or part time?What is their current wage? (Check against the application and pay stubs) Is there any garnishment on wages?

Verify Tenancy History


When did he/she rent from you?How long did this person live in the rental?Did he/she pay the rent on time?Did they have any pets?Were there any complaints from other Tenants?Was there any damage?Was the tenant respectful to you and the property?Did the Tenant give you proper notice to end the tenancy?Would you rent to this Tenant again?

Credit And Rental History Reports


Rental History Reporthttp://www.rentalhistoryreport.com

Credit Info Canadahttp://creditinfocanada.ca

Rent Checkhttp://www.rentcheckcorp.com

Tenant Verificationhttp://www.tenantverification.com

http://www.rentalhistoryreport.com/

Strategies To Keep Good Tenants


Send tenant welcome letter, along with a copy of rules and conditions for easy referenceBe professional in handling tenant issues Make repairs promptlyPresent appreciation letter / gift cards / gift basketsOffer utility rebate for on-time rent paymentsOffer referral bonus for more good tenants Increase rents according to market condition. Up to a maximum percentage once a year, need 3 months advance notice

Problem Tenant Remedies


10 day eviction notice for unpaid rent or utilities

1 month eviction notice required for1. Persistently late rent payments2. Too many people living in the unit3. Substantial interference to others (including by

visitors or pet)4. Illegal activity in the property5. Wilful damage of property6. Not done required repairs to damages7. Sublet without landlord's consent

Contd... 1 Month Eviction Notice


Breach of a material term of the leaseKnowingly gave false information to prospective tenant or purchaser of the propertySecurity or pet damage deposit was not paid within 30 days as required by the tenancy agreement

Landlord cannot unilaterally change locks or seize or throw tenants' stuff out on the streets because they complained or did not pay rent on time.

“No-Fault” Tenant Eviction


Property to be used by caretaker, manager or superintendent of the residential propertyLandlord, spouse, in-laws, or children of landlord or spouse to move into the propertyPurchaser, spouse, in-laws, or children of purchaser or spouse to move into the propertyPermit acquired for demolition or extensive repairs and renovationsConversion to strata lots or not-for-profit co-op housingConversion to non-residential use

2 months notice, 1 month rent refund to the tenant.

Money Management


Be on top of your money - security deposits, rent payments, repair and maintenance budgets, mortgage, taxes, utilitiesInterest has to be paid on collected security deposit. Currently at 0%Get vacating tenant's new address to refund the security depositCharge for any cleanups or damage repairs and send an invoice if security deposit could not cover the total expense

Paperwork Management


Be on top of your paperwork - repairs, expenses, receipts, invoicesTax time: Paperwork for your bookkeeper, accountantApplication forms, lease forms, warranties, inspection logs, manualTenant communications: notices for rent increase, late/unpaid rents, lease termination, subleasing

Paperwork Management


Electronic Receipts Management


Paper Management


Property Management Options


Dedicated Property Manager

Leasing Services

HandymanGeneral ContractorVarious Trades

Complete Self-Management

Copywriters Marketing FirmAdvertising Agency

Professional Photographer

Legal Aid Lawyer

BookkeeperAccountant

Property Management


Self - Management

OR

Managing The Property Manager

Hiring And Managing A Property Manager


Agenda


7.00-7.15 Arrivals and networking

7.15-7.20 General Introduction

7.20-7.55 Lomash – Property Management

7.55-8.15 Break and networking

8.15-8.45 Marc – Multi-family investing

8.45-8.50 Lomash – Wrap-upNext Meeting: Wednesday 26th June at 7pm.

8.50-9.15 Networking

Feedback, Prizes and Action plan!

Questions or comments? Please let us know!

Next meeting Wed. June 26th @7pm Summary: www.AspireRealEstate.ca/blog/


• Find a new person in the group and tell them what you are going to do in the next month to achieve your goal!

• Follow up at next SREIC meeting.