If i have a court order for eviction and my tenant owes me rent( like 5000$), how do I collect the owed rent here in Calgary? I know I can report to credit and send it off to collections but I read you only get 30-35% of the owed amount at best. The guy works and has some assets, what’s the process of wage garnishment or seizing assets for getting the debt owed here in Alberta?
Collecting is always hit or miss. With a judgment in Alberta you can pursue a wage garnishment if you know his employer. That process is also through the courts. I tend not to go through specifics here about regions as it varies so much from state to state and province to province.
A rental property of mine is being rented on a fixed term lease. I want the tenant to leave when the lease expires but I am concerned that the tenant won’t leave.
What are my options if the tenant refuses to leave?
As rules are different everywhere I won’t reply directly here as it might confuse someone from a different region. I’m going to email you directly with some options and to verify where you’re located.
I was surprised, to put it nicely, when I came across my images at your website. If you use a copyrighted image without my approval, you must be aware that you could be sued by the owner.
It’s unlawful to use stolen images and it’s so mean!
Check out this document with the links to my images you used at theeducatedlandlord.com and my earlier publications to obtain evidence of my legal copyrights.
Download it now and check this out for yourself:
SPAM LINK REMOVED
If you don’t remove the images mentioned in the document above within the next several days, I’ll write a complaint against you to your hosting provider stating that my copyrights have been infringed and I am trying to protect my intellectual property.
And if it doesn’t work, you may be pretty damn sure I am going to report and sue you! And I will not bother myself to let you know of it in advance.
Just to make folks aware, I’m not receiving these multiple times per week. Nearly all identically written, all linking back to the same suspicious Google doc link. And all with similar, yet slightly different email addresses, Melphoto400 versus Melphoto190 as an example.
Scammers are ramping up their game as people have more time to be home and online, so be cautious out there!
This is Melanie and I am a professional illustrator.
I was discouraged, to put it nicely, when I came across my images at your website. If you use a copyrighted image without my consent, you must be aware that you could be sued by the copyrigh owner.
It’s illicitly to use stolen images and it’s so mean!
Take a look at this document with the links to my images you used at theeducatedlandlord.com and my earlier publications to get evidence of my copyrights.
Download it now and check this out for yourself:
REMOVED AS SPAM LINK
If you don’t delete the images mentioned in the document above within the next few days, I’ll write a complaint on you to your hosting provider stating that my copyrights have been infringed and I am trying to protect my intellectual property.
And if it doesn’t work, you may be pretty damn sure I am going to report and sue you! And I will not bother myself to let you know of it in advance.
This is Melisha and I am a certified photographer and illustrator.
I was surprised, to put it nicely, when I came across my images at your web-site. If you use a copyrighted image without my approval, you should know that you could be sued by the copyright holder.
It’s illicitly to use stolen images and it’s so nasty!
Take a look at this document with the links to my images you used at theeducatedlandlord.com and my earlier publications to obtain evidence of my legal copyrights.
Download it now and check this out for yourself:
REMOVED AS SPAM LINK
If you don’t delete the images mentioned in the document above within the next several days, I’ll write a complaint against you to your hosting provider stating that my copyrights have been infringed and I am trying to protect my intellectual property.
And if it doesn’t work, you may be pretty damn sure I am going to report and sue you! And I will not bother myself to let you know of it in advance.
As all my images are either my own or acquired through paid for site I believe you may be mistaken. My site auto removed your link to the downloadable file as possible dangerous spam and the link to your website you included doesn’t exist.
So either a) you were trying to have me click a fraudulent link or b) you’re new to reaching out to people online. I’ll give you the benefit of the doubt so if you can confirm which image on which page you’re referring to I’ll take the time to either verify it’s validity and licensing, or I’ll remove it.
I have some tenants who will be moving out at the end of this month. The suite is very dirty. I’ve asked them to clean up a bit for viewings but the suite is even dirtier now than it was a couple of weeks ago. I spoke with them about it again today and it’s obvious that cleaning up is not a priority for them. This makes it very difficult to show. Any ideas?
Create a move out document for the tenants that details expectations along with deductions that they will be charged if you and your crew have to clean, fix repair anything etc.
You’ll want to get some quick hourly quotes on cleaners so you can state “cleaning is based on $XX.00 hourly rate” include charges for garbage removal, I like to charge $5 to replace burnt out light bulbs as it’s not the cost of the bulb, it’s the cost of boing to buy the bulb and then replace it as well. I also include original images of the condition where possible.
Finally I explain I want to refund their entire deposit back to them, but if the property is not properly cleaned up it not only delays the time to refund as you get additional quotes etc, but it will reduce the amount refunded.
Ultimately you set the expectations up front so it’s not a surprise later, and if it is you also have a paper trial if you need to get into battle later…
The $7 course doesn’t come with a certificate by default, the Screening Course I do provide certificates for upon completion. Having both would set you up nicely to move forward, you can find them all listed here, https://www.training.theeducatedlandlord.com/course-directory/ Once you purchase the course you’ll be sent a login and password allowing you to access them.
Hi Celia, you may need to have your mortgage agent confirm if it’s acceptable to them. It seems to vary from mortgage company to mortgage company and I’ve had limited success trying to reach them directly. It seems like the people reaching out to ask are either reluctant to put me in contact directly to confirm or create what they need or they are too lazy to do the additional work that could guarantee them an easier process going forward for future clients.
Hi there, I have a question,we just bought a house where the owner converted the garage into a 2 bedroom with 1 bathroom in-law house so their daughter could live there to take care of her sick mother , sadly the mother passed and the daughter sold the house now we own it but we found out that the daughter didn’t get permits for the in-law unit so my question is can we safely rent out the unit to a couple?
Where to begin as your question opens up a ton of other questions. First and foremost, if you are renting out an illegal unit and anything goes wrong you could be held liable. Whether it’s a tenant hurting themselves due to a missing railing, an electrical fire or even improper smoke detectors, you assume additional liability due to it being illegal.
In current society that opens the doors up to you getting sued by potential tenants, so it’s a huge risk. It may require you to have additional insurance as well, which you may not even be able to get.
Now the additional questions that pop up, was this property advertised as a suited or legally suited property? If the sellers withheld the information that ti wasn’t legal it may provide you opportunities to get some money back, to completely back out of the deal or to reach a middle ground that works for both of you.
If you used a Realtor for the purchase it may open additional avenues for recourse as it’s the Realtors job to verify the majority of the details involved with the transaction or to at least make you aware of what you need to know going forward.
This could include zoning info, legalities, by-laws and more.If you were buying this as a revenue property that was supposed to be suited and the Realtor didn’t complete the proper due diligence this also opens legal recourse for you.
Finally it would be beneficial for you to determine how much ti may cost to actually legalize the unit if it’s even possible.
In the end a majority of the responsibility falls on you to do your homework, there are trusted professionals that should have also made you aware of possible issues along the way and these include any home inspectors you brought in, any Realtors involved and potentially your lawyer. Hope that helps.
I was referred here by Bigger Pockets. I recently purchased a rooming house with 6 rooms and a two bedroom apartment that can be used by an on site manager. It’s completely vacant now and I’m looking to rent it. I was recently approached by a faith based non profit interested in renting space to place parolees. This agency provides counseling and support services to these people. Most of these guys were convicted of drug offenses or simple assault. The agency would lease the rooms directly from me and sublet the rooms to the tenants. I can say who I don’t accept and would have final approval on who they place in there. For example, I wouldn’t want any sex offenders or violent criminals. The building is located in a C type area; not quite a war zone, but a mostly a pool of tenants who are the working class/working poor.
Also, I’m thinking of the various house rules I’d like to have in place. My concerns are any associations these guys may have and I’m thinking of a rule where there would be no visitors allowed. I know most parolees are under tight control anyway, but I really don’t want folks coming in and out of the building visiting these guys. I don’t know if that would occur anyway, but just would like to pre-empt any potential issues.
Any thoughts on this and working with the agency? Thanks in advance for answering
I guess I need to shout out to Bigger Pockets for the referral! Congrats on your new purchase, it’s likely going to be a bit overwhelming at first as it can be quite a transition going from regular rentals to rooms and then adding on the types of properties can create an even more interesting scenario.
I just finished consulting with another landlord a couple weeks ago who is also just starting with rooming properties and her first tenants will be parolees. We hashed out some pretty good starting rules and processes for her and I believe I can do the same for you.
So here’s what I’m offering, a completely risk free consultation. I’ll email you directly in a few minutes with the details. Bottomline, I’ll talk to you for 30-60 minutes on the phone or Skype and if you feel I’ve made a difference, you pay the $50 consulting fee. IF I don’t we both walk away and never talk about it again 8′]
Hi, I have a question for you. I’m in Cornwall Ontario. I have a 8 room rooming house. We’ve never had an agreement between us and the roomers. We are having problems with one of the roomers and I like to know if we can evict them ASAP. He is rowdy, disruptive and has been late paying his rent.
He argues with the other roomers on a daily basis. It’s time for him to go and go now. Can we evict him immediately or does he fall under like someone who is in an apartment with year lease.
Thank you for your time with this and I apologize if this has been asked previously.
You really need to get some sort of agreements in place going forward. Not having agreements can really leave you wide open when things go sideways.
As for specific rules about evicting a tenant I can’t really help you. The rules are so different from place to place and I know Ontario has some pretty tenant friendly rules in place which could make your job a bit tougher.
You’ll really need to learn the eviction rules, especially pertaining to a rooming house property. Knowing those rules can make a huge difference as far as confidence goes for yourself. I’d suggest talking to the landlord tenant group in Ontario and asking for some specifics about what you have to do.
You’ll definitely want to get rid of this tenant as well as one bad apple can definitely drive a bunch of the other tenants out.
Yes, Bill, it’s me again!! We have been bracing ourselves for our upcoming home insurance renewal. We have been told to expect anywhere from a 10-25% wood stove surcharge. Our broker told us we should disconnect the stove pipes so the tenants cannot use it. It is not listed in the lease as are the washer and dryer, etc., so legally can we do this? It could serve as an incentive to prompt them to move early, as we have been having quite a few issues with them anyway… What do you think?
Another thought. They own one of those portable wood firepits, and have been using it on the deck next to the house. I know it has a screen, but it is in Pincher Creek, which is a bit breezy at times…Should we tell them to move it out on the grass or what?? Thanks!!
I’d just let the tenants know that your insurance has asked you to shut down the wood stove or there may be a cancellation of the insurance. I wouldn’t necessarily do it as an addendum, but I would follow it up with written notice that the stove will be disabled and that an attempt to use it will violate the insurance and the lease.
Just a bit of a paper trail. As for the fire pit out back, I’d check local fire by-laws and any insurance potential issues and then update the tenants. There may be specific rules about proximity to a building etc that may fit into your needs!
Wow, thanks, Bill!!! How simple! And our broker, who thinks he has found a new insurer, said we will have to resubmit all the wood stove info, and there is the chance they will not accept it anyway, as it was installed 30 years ago by the homeowner…We actually had to move it a further six inches from the wall when we bought the house to satisfy our insurer!
Thanks so much!! I’ll let you know what happens!
Well, I gave the tenants a hint that the wood stove may be disabled, and it appears it is an important feature to them and they suggested moving early or subletting. I was so relieved, as you know how I feel about their incessant complaining (and yes, they threw in another complaint!). Can we just break the lease, waive the re-rental penalty, and find our own tenants? Subletting would mean the relationship with them is not truly over! We are planning to disable the stove next week after it gets cleaned, but Hubby also thinks we could re-enable it with new tenants. I think we should not. If the old tenants found out, could they not complain and get us in trouble? It is a very small town! I wish this would just go away!! Thanks, Bill.
I understand your main goal is to get them out, but the extra costs associated with the higher insurance may turn the property into an alligator eating into your pocket.
You may want to look at options with your insurance company (once your current tenants have confirmed departure) and see if there are ways to reduce the extra insurance hit. This could range from getting a qualified inspector to certify it, adding extra fire fighting equipment (extinguishers, upgraded smoke/co2 detectors or sprinklers if you have a huge budget…) or simply adding special safety updates (special fire glass, removing nearby carpet) and voila, potentially saving some of that huge increase making it viable.
Bill
Syed K Kamalsays
Hi Bill, I been benefiting from your regular newsletter for a while. Just happened to visit your web site. You have done a great job here. Who did you hire to do the web site.
Glad to hear the emails have been helpful. Also appreciate the feedback.
I have been doing the website myself. I have a bit of a side hustle doing websites to keep me busy (as if everything else I do doesn’t…). Why do you ask?
Is a signed, scanned and emailed lease valid in Alberta? I was planning to send the lease renewal via email, signed by us (the landlords) and then they can sign it, scan it, and email it back. We would then each have a copy with one scanned and one real signature. Otherwise, I will have to mail them.
I will wait for your reply before acting…I could not find anything online, and knew that you would have the answer!
Thanks again, Bill!
No news from you for awhile! I would like to know if a landlord needs a reason to enter the premises other than wishing to take a look around and making sure the place looks OK. I would not want to offend the tenant but we have not been inside since they moved in last May.
I can think of a couple reasons but I would also prefer to view it when the place is empty, so thought I could bring a realtor friend along and just say I need an evaluation for our accountant. Thoughts?
Thanks a heap in the meantime!! And hope all is well!
Where you’re located not really, although you’re not supposed to randomly interrupt a tenants privacy, so it’s good to have a reason. This could be yearly or bi-yearly furnace inspections, plumbing checkups and/or even just to replace furnace filters and smoke detector batteries.
An evaluation may also be plausible, but make sure you do inspections of under sink plumbing while your there just as a maintenance thing, many tenants neglect to mention leaks until it’s too late or they are simply oblivious.
Depending on where you live there may be other local laws and regulations in effect, so any landlords out there hoping to do similar inspections, make sure you understand the local rules that apply where you are at.
Thanks, Bill. We had some work done on the furnace already and she is a volunteer fire fighter so she is very good about smoke detectors. I think the evaluation may be the best angle, plus then we get another one for our files in case we want to sell later, haha! I also could tell them we need to measure a few things, like a window and a vanity…Good tip about checking for leaks, though!
I just read some posts on a Calgary pet Facebook group that a landlord cannot charge a pet deposit nor, if a tenant gets a pet when the lease says no pets, can the landlord tell the person to remove the pet or move out. We do allow pets, without a deposit, but this sounds incorrect!
Thanks!!
Thank you so much for your video. I am so happy I found your website. I am a landlord for a year now , renting rooms in my properties. I have being so lucky with my tennants since recently when one of my tenant decided that he doesn’t like his new roommate and gave me *shit* sorry for the word for bringing that new renter in the house. So now he is giving me a hard time but hopefully everything will go fine till he leaves the premise. But you are so right, we should all treat good tenants like gold. Unfortunately from my experience, good tenants can turn into bad tenants. But that is part of the business I guess. Such a learning experience to be a landlord. Thanks again for sharing your advices and experiences.
You’re most welcome! Hopefully the landlords tips you signed up for will help you out and give you some new ideas!
As for good and bad tenants, you are right, those good tenants can turn bad and once you accept it (as painful as it can be) as a business, it makes it marginally easier.
First, before I ask my question I want to let you know that I subscribed to your newsletters two years ago and LOVE them. I live in Newfoundland (yes, slightly further away from Alberta…ha), and though there are slightly different rules – in fact landlords don’t actually have as many rights as they do in Alberta – your articles have ‘steered’ us in the right direction. Thanks for the great advice!
So…here’s my scenario/question:
We own a two unit property and live upstairs. The tenants in the basement apartment are the best we’ve ever had (like, paying their rent a week in advance most of the time). We purchased another property to move into (yes, another two unit property), and the basement tenants have decided to move to the upstairs unit once we leave. Because we have a dog and a back yard, we’ve allowed them to have a pet when they move upstairs (note that we do not allow any pets in the basement apartment). Also, there is a four-year old child living with them.
We are now in the process of interviewing applicants for the basement property. My husband and I are debating on how much to disclose to the potential candidates with regards to both a dog and a child living in the upstairs unit. My husband thinks it doesn’t matter. However my perspective is that the basement tenants could hear the child running around (on the hardwood floors), and may not like it (note we did sound proof the two units, but it’s not 100%). I feel it would be best to inform any potential candidates now so that there are no issues later (specifically, those who don’t like the idea of a child living upstairs). What’s your experience? Also, I’m not sure if we need to inform them about the dog though….thoughts?
Thanks VERY much, I’m glad you love the emails I send out and I hope even more they are helping you! Many of the visitors to The Educated Landlord site are under the impression this is about landlording specifically in Alberta, as they are getting directed here from a site that specifically deals with Alberta tenancy/eviction issues, but that’s incorrect.
The information contained in all the articles and in the emails I send out are applicable almost everywhere. We have readers from Australia and Asia as well as across Europe and North America that stop in, sign up and both read the articles and receive my newsletters.
And your question is a great question that many landlords should be asking! What do you do about disclosing potential information that will affect the other tenants?
While there may be no perfect answer, my thoughts are you need to think like the incoming tenant. If you’re moving into a new place, believing it is child free and pet free and discover both of your beliefs were incorrect, how happy would you be? If you’re a pet/child person it may not make a difference, but if you aren’t too excited about one or either a) how happy will they be and b) how long will they stay due to potential unhappiness?
The other can of worms with this is if the upper tenants have pets, why can’t the downstairs tenants? Be prepared for this as it will come up!!
I would likely disclose this in any advertising, at least the pet upstairs, and then in any potential phone interview determine if having children upstairs will be an issue. If you can match suitable tenants together that also have a child perhaps it becomes a better situation where everyone gets along and you find two great tenants who want to stay with you forever!
One last thought, why not ask the new to the upstairs tenants if they have any friends or people they would recommend for the lower unit? If the upstairs people are great, why not try and get their friends too as great people tend to have great and similar friends!
We have just signed on a new tenant who will move in May 1. She did not have a lease with her current landlord and has lived there for almost 4 years, and did some serious out-of-pocket improvements to the house, and she is now worried he may not pay her for them. What recourse does she have? Also, our lease does not have any provision for improvements or changes performed by the tenant. We only ever had one who painted a room for a baby and they paid for the paint and did it themselves, doing a good job actually. Can one draft up an addendum to a lease concerning this? Thanks, Bill!!
Without written agreements it can be more complicated, she may have recourse to go through small claims court to try and recover an out of pocket costs, but it may be all for naught. It may be an expensive lesson for her about getting improvements written into either the lease or a side agreement in the future.
As for your lease you may wish to either add a section or an addendum about all improvements must be approved by the landlord. You could add a section about covering costs etc, or leave that as negotiable depending on the situation.
Thanks, Bill. He seems like a nice enough guy so hopefully he will pay up, but our current tenants are moving into that house now and are very nervous about not having a lease. So, I offered to send them the one they have used with us. Swapping houses will be a busy day for these folks!
I will draft up an addendum about improvements, as you suggested. Thanks!!
I am looking for advice/suggestions regarding listing a house with a tenant in place. We are pondering if we should list our house in Pincher Creek; inventory is very low and that could be a benefit as there would not be much competition. The tenants just extended the lease to July 31/15 and we would like to honour that, if possible, to keep them happy. I don’t think they would be ignorant and leave the house a mess for showings as she is a good housekeeper, but this would be an inconvenience. All I know is they require 24 hours notice.
If you or anyone else on here has any helpful hints, that would be great! Thanks!!
It can often be tough listing with a tenant in place. It’s rarely in their best interest to help sell it, unless it is being sold as a rental to someone else, then they will often be on their best behaviour if it;s explained properly to them.
Where you’re located the rules do state you have to provide 24 hours notice of any showing or access by you, which can be a pain for any Realtor showing it and may also cause some headaches. I know many Realtors will simply avoid showing tenanted properties as it is extra work, but if there are few listed properties in the area that can offset the issue.
You may want to go over timing with your tenants and perhaps you can set up a consistent time it will be available for showings and then have them sign off that it will be ok for the Realtor(s) to enter during that time. If they work, you may want to coordinate to have the property available for viewings between 11 and 4 each week day and for evening or weekend showings still provide 24 hour notices, it can all come down to how agreeable the tenants are.
Alternatively you have to wait until August and see where it takes you from there.
Great advice, Bill! Not only all this, but the house needs a few repairs to realize the best money, and one cannot do that effectively with tenants either!
I guess we could always live in it ourselves, haha!
Or, do not renew the lease, lose a month’s rent, fix it up, and re-rent it…too may choices.
One other thing to think about, if you’re selling it as a family home versus a rental again ti makes even more sense to have the tenants out when you sell. That months vacancy could more than pay for itself by getting the property sold quickly. More things to think about!
Further to this, can a landlord insist that the tenant remove exotic pets from the home if he /she chooses to list the property while the tenant is in it? She owns tarantulas that live in an aquarium…I don’t know that a prospective buyer would like seeing this in the dining room…
This property may be best marketed as a revenue property as it has been rented for the last five years plus. Thanks!!
Sorry I missed your comment here, just saw it now. Tough call about the pets, you allowed them in before, so rather tough to evict them just for you to sell it.
I’d work on making sure the tenant can ensure they are secured and potentially hidden where possible so as to not scare potential buyers. Since you’re considering selling it as a revenue property I’d position it with the tenant that it’s in their best interest to work with you so they can stay on, you’d hate for the new buyer to be deathly afraid of spiders and insist the tenant either vacate or remove the pet, so working together would assist both of you if you know what i mean.
Hi Bill, I have a question. A tenant was referred to me and we signed a 15 months lease. Due to the miscommunication between me and the person who referred, the rent is about 20% lower than current market. I’d like to bring the rent to the market value. Can I raise the rent after one year anniversary, or do I have to wait until the lease term finish? This is in Alberta.
Thanks!
Just about everywhere, once the lease is in place you are stuck with the rent stated there until the term ends. However, you may be able to negotiate a new lease with them and if that is the case the rules can change as it is mutually agreed upon.
If you know the rent will be going up 20% in say six months, you might want to offer them a 10% increase starting now if they void the current lease with you. This way they can lock the 10% increase in. If they really love the place and want tot stay it may be attractive to them, if they planned on moving if the rent increased it may not, so it’s a case by case situation.
I sent you an email about lease extensions but maybe that would also make a good idea for a blog topic. I know you are busy so no worries!
Here is another topic idea: SNOW REMOVAL!! Thankfully we have it checked off as the tenants’ responsibility, and have not had anyone expect us to take care of it, but I did get an email yesterday from our tenant in Pincher Creek which got almost three feet recently! The Town does not plow back alleys but thankfully the apartment block next door has a garbage bin back there near our garage so have to contract out weekly snow removal. The snow fell in between garbage pickup days so the tenants had to shovel over 100 feet to get out to get to the airport! Luckily I got the name of the new bobcat guy so the tenants can hire him if required. Our garage is a feature of our property so access is important. Does it ever become a landlords’ responsibility if the lease marks the tenant as being responsible, in your opinion?
Thanks, Bill!!
My apologies Kelly, I originally saw your email on the phone an didn’t have time to reply, so I promptly got distracted and forgot about it. I just emailed you back directly with my thoughts.
It may not work out as a blog topic, simply because the rules vary from state to state and province to province so what I suggest for someone in Alberta may be illegal for someone in New York and I don’t want to lead someone down the wrong path.
Snow removal though I may be able to work with!
Big picture for all landlords though, if any one gets ticketed for the sidewalks being covered with snow it is rarely the tenant, it is the property owner. So depending on local rules, you either make the tenant(s) responsible via the lease or you have a backup plan in place to forward any ticket costs to the tenant to make them appreciate it more.
Hi Bill my tenent has moved without paying me rent for month and a half and damages to my reantal property ,i dont know where they have moved i filled claim against them and send them papers through registred mail .i am woundering if they dont accept the registred mail and it comes back to me what should i do , i used the same address of my property hopefully they might have directed their mail to new place where they live now.what should i do if the mail comes back to me ?
Thank you.
Jack
It really depends on the local rules and regulations where you are located. Maybe places have methods where you can “serve” tenants to appear at hearings without physically serving them, but at the same time they are also easily appealed.
You’ll need to check your local laws and rules on this if you wish to continue to move forward, but usually by the time they have vacated it’s too late. Even if you do track them down, you often just end up with a judgment and they have no money to pay anyway, so now you are frustrated, still don’t have the money and wasted time and positive energy just to get more irritated.
Hi Bill
Hope all is well with you. I have been looking at having my parking spaces repaved in the back of my apt building. The price is looking like it is going to be 10,000.00 give or take a little here in good old Med Hat. Don’t know what I was expecting price wise but have to say I did gulp when I saw the estimate. The guy told me that at such time you sell your property it increases the selling price by at least twice the amount you paid to have the new pavement. Just wander if you think this is true or just a bit of you know what.
Thanks again for all your great work and the time you took chatting with me last summer.
My apologies for not responding quicker, I saw this when it came in, was busy that day and then promptly forgot about it.
In answer to whether it would return $20,000 in value, I would be hesitant to say. If your current parking space is horrendous, then there is a very good chance it will help increase the value, if it just needs work, then perhaps not.
Where it will really return value is in curb appeal to new tenants, current tenants and potential buyers of the property. Better curb appeal can translate into higher rents, longer term tenants and less work for a buyer, so all of these can drive up values. Whether it doubles the money put in……
If that was the case, wouldn’t every building up for sale have new parking lots?
Also remember, whenever you’re getting a large project done on a rental property (or actually anything), it never hurts to get two or three estimates from different people, just to make sure no one is taking you for a ride on your shiny new parking lot!
I am a college sophomore who would like to make landlording my career. I am currently majoring in entrepreneurship with a
minor in spanish, Army ROTC, and personal financial. What else what would you recommended I do to prepare for landlording before graduation?
One of the most under estimated areas for landlords is people skills. You need to be able to talk to and relate to tenants, prospective tenants and contractors. I’m not sure of a specific course that could help with this, but public speaking groups like Toastmasters would definitely assist you and I’m sure the ROTC has some benefits in that area as well.
Other than that having some handyman skills would be an asset, so sitting in on some Home Depot or Lowe’s weekend workshops would definitely benefit long term.
As far as actual courses offered by colleges, not much comes to mind. True you need a solid business understanding, and you’ll gather the basics of that from your personal finance course, more advanced courses gravitate to larger business models which don’t necessarily translate down. If your goal is to get into commercial buildings and larger projects it would be beneficial though.
Understanding economics can be extremely helpful when locating areas and cities more prone to longer term growth, but economics in University bored me to tears, it wasn’t until I was in the real world and could see economic factors playing out around me that I started to get a grasp of it (maybe it’s just how I learn?).
Anyway, hope that gives you some areas to start thinking about.
Sorry I didn’t see your reply until today. The answer to your question is a little bit trickier than it seems. First, if you plan on simply surviving on the income from renting out properties, you need to determine how much income you require to survive and thrive.
If you want an income of $24,000 per year, you would need $2,000 per month of rental income above and beyond all your expenses. If you have a property that cash flows $1,000 per month after all expenses and reserves, you would simply need two properties like that and you would be fine.
If you have a property that cash flows $500 per month, you would need four units like that. All make sense so far?
Well, if $24k a year is on the low side of where you want to be, you might have to quadruple that to be in your happy place. That means you would need four times as many properties to reach that goal.
Now that’s just the back end. We still haven’t talked about purchasing a property.
You would need to qualify to get a mortgage on each and every property, so you actually need a steady job before you begin so you have a source of income and a downpayment eventually. This would have to be replicated each time to get the second property and so on. It will not happen over night.
The first four years of being involved in Real Estate, I kept my well paying full time job until it reached a point where being employed was costing me money and I had enough income from Real Estate ventures to allow me to purchase more properties.
The mortgage rules were easier back then and due to all the complications from the credit fall out it is definitely tougher to qualify, so it may take even longer to reach the same level we did in four years.
Plus we also were fully engaged with Real Estate, we bought and flipped properties to provide additional income and down payments. Our process was buy and flip a property or two to fund our lifestyle, repeat again to get a downpayment on a rental and repeat it again to purchase another property and we did this for multiple years in a row.
So ultimately being a landlord might be an end goal, it might not be something you can just step into.
Make sense?
Hi Bill!
We are not having much response to our ads for our house in Pincher Creek as it is definitely a tenant’s market there now as opposed to last year when it was the complete opposite! Would it be a good idea to offer a rent incentive, say, the first 3 months at a reduced rent if you sign a one year lease, or something like that? We are competitively priced and our Kijiji ads on both Calgary and Lethbridge are getting lots of views. Any tips would be much appreciated! Thanks very much!!
Personally I hate rent incentives as it’s like devaluing your property. A couple thoughts for you. You believe you are price competitive and you are getting lots of views, are you getting lots of calls as well?
If you’re only getting calls, you may have a good headline for your ad, which attracts views, but the actual ad itself isn’t compelling to the readers. You have to consider it a multi step process when it comes to your ads.
The headline gets them to look at the ad, the written ad itself helps you screen tenants you don’t want and attract tenants you do want and then it directs the reader to contact you. If you’re not getting calls, or a very low number of calls, maybe start by re-writing the ad.
If you are getting lots of calls and lots of showings and people still aren’t stepping up, then perhaps there is something about the property. That requires different steps. One of those would be to follow up with people later and ask why they chose other properties. It might be something simple you are missing or don’t notice and just getting some feedback could help you out.
Thanks. The ad has a lot of info, including the fact that we prefer a one year lease, n/s and pets are negotiable, and excellent references are required. We have had 6 people reply, two of whom were illiterate and could not read! No showings yet but one emailed this morning and wants to see it. I guess following up would be an idea to try.
Where can a landlord go to get proper forms that are acceptable in court and up to date,including 1)Application for Rental Accommodation, Residential Tenancy Agreement, Accommodation Inspection Reports, and Notices To Tenants, ect…? Currently I order through “The landlord and Tenant Advisory Board” out of Edmonton,A.B. Is there a government or any other site we can use to print forms needed off or any where closer to Southern Alberta (Lethbridge & Area) please consider the fact that we do not have access to RTDRS so any forms regarding those services are not needed or irrelevant. Thank-you in advance for any infomation you can provide to assist us! looking forward to your reply and have a wonderful day!!
Sorry for the delayed response. The correct answer would be to go through a Real Estate lawyer, they typically have access to these type of forms and by acquiring them through a lawyer they are typically solid forms.
Second to that would be via local Landlord and Tenant boards, although many of these forms may not be quite as ironclad.
Finally local office stores like Staples and Office Depot carry a selection of forms they typically sell, but these often are very generic and should likely be reviewed also by your lawyer.
Hi,
If i have a court order for eviction and my tenant owes me rent( like 5000$), how do I collect the owed rent here in Calgary? I know I can report to credit and send it off to collections but I read you only get 30-35% of the owed amount at best. The guy works and has some assets, what’s the process of wage garnishment or seizing assets for getting the debt owed here in Alberta?
Hi Raghav,
Collecting is always hit or miss. With a judgment in Alberta you can pursue a wage garnishment if you know his employer. That process is also through the courts. I tend not to go through specifics here about regions as it varies so much from state to state and province to province.
Bill
Hi Bill,
A rental property of mine is being rented on a fixed term lease. I want the tenant to leave when the lease expires but I am concerned that the tenant won’t leave.
What are my options if the tenant refuses to leave?
Thanks
Hi Matt,
As rules are different everywhere I won’t reply directly here as it might confuse someone from a different region. I’m going to email you directly with some options and to verify where you’re located.
Bill
Hi there!
This is Melynda and I am a licensed illustrator.
I was surprised, to put it nicely, when I came across my images at your website. If you use a copyrighted image without my approval, you must be aware that you could be sued by the owner.
It’s unlawful to use stolen images and it’s so mean!
Check out this document with the links to my images you used at theeducatedlandlord.com and my earlier publications to obtain evidence of my legal copyrights.
Download it now and check this out for yourself:
SPAM LINK REMOVED
If you don’t remove the images mentioned in the document above within the next several days, I’ll write a complaint against you to your hosting provider stating that my copyrights have been infringed and I am trying to protect my intellectual property.
And if it doesn’t work, you may be pretty damn sure I am going to report and sue you! And I will not bother myself to let you know of it in advance.
Just to make folks aware, I’m not receiving these multiple times per week. Nearly all identically written, all linking back to the same suspicious Google doc link. And all with similar, yet slightly different email addresses, Melphoto400 versus Melphoto190 as an example.
Scammers are ramping up their game as people have more time to be home and online, so be cautious out there!
Bill
Hi,
This is Melanie and I am a professional illustrator.
I was discouraged, to put it nicely, when I came across my images at your website. If you use a copyrighted image without my consent, you must be aware that you could be sued by the copyrigh owner.
It’s illicitly to use stolen images and it’s so mean!
Take a look at this document with the links to my images you used at theeducatedlandlord.com and my earlier publications to get evidence of my copyrights.
Download it now and check this out for yourself:
REMOVED AS SPAM LINK
If you don’t delete the images mentioned in the document above within the next few days, I’ll write a complaint on you to your hosting provider stating that my copyrights have been infringed and I am trying to protect my intellectual property.
And if it doesn’t work, you may be pretty damn sure I am going to report and sue you! And I will not bother myself to let you know of it in advance.
Wow, second exact same comment, but with different email address and website link, but same suspicious link to a document.
I’m calling BS. Any future comments like this will automatically get deleted.
Bill
Hi,
This is Melisha and I am a certified photographer and illustrator.
I was surprised, to put it nicely, when I came across my images at your web-site. If you use a copyrighted image without my approval, you should know that you could be sued by the copyright holder.
It’s illicitly to use stolen images and it’s so nasty!
Take a look at this document with the links to my images you used at theeducatedlandlord.com and my earlier publications to obtain evidence of my legal copyrights.
Download it now and check this out for yourself:
REMOVED AS SPAM LINK
If you don’t delete the images mentioned in the document above within the next several days, I’ll write a complaint against you to your hosting provider stating that my copyrights have been infringed and I am trying to protect my intellectual property.
And if it doesn’t work, you may be pretty damn sure I am going to report and sue you! And I will not bother myself to let you know of it in advance.
Hello Melisha,
As all my images are either my own or acquired through paid for site I believe you may be mistaken. My site auto removed your link to the downloadable file as possible dangerous spam and the link to your website you included doesn’t exist.
So either a) you were trying to have me click a fraudulent link or b) you’re new to reaching out to people online. I’ll give you the benefit of the doubt so if you can confirm which image on which page you’re referring to I’ll take the time to either verify it’s validity and licensing, or I’ll remove it.
Hope you find that suitable,
Bill
The website says the price is reduced to $19.95. Is that offer still good? I need the information to find a roommate.
Thank you.
It is Debbie,
I also replied to the email you had with more specifics to the other questions you asked.
Bill
Hi Bill,
I have some tenants who will be moving out at the end of this month. The suite is very dirty. I’ve asked them to clean up a bit for viewings but the suite is even dirtier now than it was a couple of weeks ago. I spoke with them about it again today and it’s obvious that cleaning up is not a priority for them. This makes it very difficult to show. Any ideas?
Hi Sheri,
Create a move out document for the tenants that details expectations along with deductions that they will be charged if you and your crew have to clean, fix repair anything etc.
You’ll want to get some quick hourly quotes on cleaners so you can state “cleaning is based on $XX.00 hourly rate” include charges for garbage removal, I like to charge $5 to replace burnt out light bulbs as it’s not the cost of the bulb, it’s the cost of boing to buy the bulb and then replace it as well. I also include original images of the condition where possible.
Finally I explain I want to refund their entire deposit back to them, but if the property is not properly cleaned up it not only delays the time to refund as you get additional quotes etc, but it will reduce the amount refunded.
Ultimately you set the expectations up front so it’s not a surprise later, and if it is you also have a paper trial if you need to get into battle later…
Bill
do you have 2 car garage in the area of Abingdon Md.
Do you provide certificate of completion for your landlord 101 or introduction to landlord course $7?
How do I sign up if I don’t have a user or password? For whatever reason there is no first time sign up that I could see.
Hi GB,
The $7 course doesn’t come with a certificate by default, the Screening Course I do provide certificates for upon completion. Having both would set you up nicely to move forward, you can find them all listed here, https://www.training.theeducatedlandlord.com/course-directory/ Once you purchase the course you’ll be sent a login and password allowing you to access them.
Bill
Is the certificate valid for New Uork State?
Hi Celia, you may need to have your mortgage agent confirm if it’s acceptable to them. It seems to vary from mortgage company to mortgage company and I’ve had limited success trying to reach them directly. It seems like the people reaching out to ask are either reluctant to put me in contact directly to confirm or create what they need or they are too lazy to do the additional work that could guarantee them an easier process going forward for future clients.
Bill
Hi there, I have a question,we just bought a house where the owner converted the garage into a 2 bedroom with 1 bathroom in-law house so their daughter could live there to take care of her sick mother , sadly the mother passed and the daughter sold the house now we own it but we found out that the daughter didn’t get permits for the in-law unit so my question is can we safely rent out the unit to a couple?
Hi Gina,
Where to begin as your question opens up a ton of other questions. First and foremost, if you are renting out an illegal unit and anything goes wrong you could be held liable. Whether it’s a tenant hurting themselves due to a missing railing, an electrical fire or even improper smoke detectors, you assume additional liability due to it being illegal.
In current society that opens the doors up to you getting sued by potential tenants, so it’s a huge risk. It may require you to have additional insurance as well, which you may not even be able to get.
Now the additional questions that pop up, was this property advertised as a suited or legally suited property? If the sellers withheld the information that ti wasn’t legal it may provide you opportunities to get some money back, to completely back out of the deal or to reach a middle ground that works for both of you.
If you used a Realtor for the purchase it may open additional avenues for recourse as it’s the Realtors job to verify the majority of the details involved with the transaction or to at least make you aware of what you need to know going forward.
This could include zoning info, legalities, by-laws and more.If you were buying this as a revenue property that was supposed to be suited and the Realtor didn’t complete the proper due diligence this also opens legal recourse for you.
Finally it would be beneficial for you to determine how much ti may cost to actually legalize the unit if it’s even possible.
In the end a majority of the responsibility falls on you to do your homework, there are trusted professionals that should have also made you aware of possible issues along the way and these include any home inspectors you brought in, any Realtors involved and potentially your lawyer. Hope that helps.
Bill
I was referred here by Bigger Pockets. I recently purchased a rooming house with 6 rooms and a two bedroom apartment that can be used by an on site manager. It’s completely vacant now and I’m looking to rent it. I was recently approached by a faith based non profit interested in renting space to place parolees. This agency provides counseling and support services to these people. Most of these guys were convicted of drug offenses or simple assault. The agency would lease the rooms directly from me and sublet the rooms to the tenants. I can say who I don’t accept and would have final approval on who they place in there. For example, I wouldn’t want any sex offenders or violent criminals. The building is located in a C type area; not quite a war zone, but a mostly a pool of tenants who are the working class/working poor.
Also, I’m thinking of the various house rules I’d like to have in place. My concerns are any associations these guys may have and I’m thinking of a rule where there would be no visitors allowed. I know most parolees are under tight control anyway, but I really don’t want folks coming in and out of the building visiting these guys. I don’t know if that would occur anyway, but just would like to pre-empt any potential issues.
Any thoughts on this and working with the agency? Thanks in advance for answering
Hi Greg,
I guess I need to shout out to Bigger Pockets for the referral! Congrats on your new purchase, it’s likely going to be a bit overwhelming at first as it can be quite a transition going from regular rentals to rooms and then adding on the types of properties can create an even more interesting scenario.
I just finished consulting with another landlord a couple weeks ago who is also just starting with rooming properties and her first tenants will be parolees. We hashed out some pretty good starting rules and processes for her and I believe I can do the same for you.
So here’s what I’m offering, a completely risk free consultation. I’ll email you directly in a few minutes with the details. Bottomline, I’ll talk to you for 30-60 minutes on the phone or Skype and if you feel I’ve made a difference, you pay the $50 consulting fee. IF I don’t we both walk away and never talk about it again 8′]
Fair?
Bill
I have a garage I want to rent out for storage or car. How do I go about putting it in the paper shop 300.00 a month Ron. 570 906-5003
Have you tried calling the paper?
Hi, I have a question for you. I’m in Cornwall Ontario. I have a 8 room rooming house. We’ve never had an agreement between us and the roomers. We are having problems with one of the roomers and I like to know if we can evict them ASAP. He is rowdy, disruptive and has been late paying his rent.
He argues with the other roomers on a daily basis. It’s time for him to go and go now. Can we evict him immediately or does he fall under like someone who is in an apartment with year lease.
Thank you for your time with this and I apologize if this has been asked previously.
Kim
Hi Kim,
You really need to get some sort of agreements in place going forward. Not having agreements can really leave you wide open when things go sideways.
As for specific rules about evicting a tenant I can’t really help you. The rules are so different from place to place and I know Ontario has some pretty tenant friendly rules in place which could make your job a bit tougher.
You’ll really need to learn the eviction rules, especially pertaining to a rooming house property. Knowing those rules can make a huge difference as far as confidence goes for yourself. I’d suggest talking to the landlord tenant group in Ontario and asking for some specifics about what you have to do.
You’ll definitely want to get rid of this tenant as well as one bad apple can definitely drive a bunch of the other tenants out.
Sorry I can’t be much more helpful.
Bill
Thanks Bill, I appreciate your time with this. I’ll keep you posted.
Many thanks
Kim
Yes, Bill, it’s me again!! We have been bracing ourselves for our upcoming home insurance renewal. We have been told to expect anywhere from a 10-25% wood stove surcharge. Our broker told us we should disconnect the stove pipes so the tenants cannot use it. It is not listed in the lease as are the washer and dryer, etc., so legally can we do this? It could serve as an incentive to prompt them to move early, as we have been having quite a few issues with them anyway… What do you think?
Another thought. They own one of those portable wood firepits, and have been using it on the deck next to the house. I know it has a screen, but it is in Pincher Creek, which is a bit breezy at times…Should we tell them to move it out on the grass or what?? Thanks!!
Could we do an addendum to the lease forbidding use of the wood stove?
Morning Kelly,
I’d just let the tenants know that your insurance has asked you to shut down the wood stove or there may be a cancellation of the insurance. I wouldn’t necessarily do it as an addendum, but I would follow it up with written notice that the stove will be disabled and that an attempt to use it will violate the insurance and the lease.
Just a bit of a paper trail. As for the fire pit out back, I’d check local fire by-laws and any insurance potential issues and then update the tenants. There may be specific rules about proximity to a building etc that may fit into your needs!
Hope that helps,
Bill
Wow, thanks, Bill!!! How simple! And our broker, who thinks he has found a new insurer, said we will have to resubmit all the wood stove info, and there is the chance they will not accept it anyway, as it was installed 30 years ago by the homeowner…We actually had to move it a further six inches from the wall when we bought the house to satisfy our insurer!
Thanks so much!! I’ll let you know what happens!
Please do, sometimes the simple answers are the best!
Bill
Well, I gave the tenants a hint that the wood stove may be disabled, and it appears it is an important feature to them and they suggested moving early or subletting. I was so relieved, as you know how I feel about their incessant complaining (and yes, they threw in another complaint!). Can we just break the lease, waive the re-rental penalty, and find our own tenants? Subletting would mean the relationship with them is not truly over! We are planning to disable the stove next week after it gets cleaned, but Hubby also thinks we could re-enable it with new tenants. I think we should not. If the old tenants found out, could they not complain and get us in trouble? It is a very small town! I wish this would just go away!! Thanks, Bill.
Hi Kelly,
I understand your main goal is to get them out, but the extra costs associated with the higher insurance may turn the property into an alligator eating into your pocket.
You may want to look at options with your insurance company (once your current tenants have confirmed departure) and see if there are ways to reduce the extra insurance hit. This could range from getting a qualified inspector to certify it, adding extra fire fighting equipment (extinguishers, upgraded smoke/co2 detectors or sprinklers if you have a huge budget…) or simply adding special safety updates (special fire glass, removing nearby carpet) and voila, potentially saving some of that huge increase making it viable.
Bill
Hi Bill, I been benefiting from your regular newsletter for a while. Just happened to visit your web site. You have done a great job here. Who did you hire to do the web site.
Hi Syed,
Glad to hear the emails have been helpful. Also appreciate the feedback.
I have been doing the website myself. I have a bit of a side hustle doing websites to keep me busy (as if everything else I do doesn’t…). Why do you ask?
Bill
Hi Bill!
Is a signed, scanned and emailed lease valid in Alberta? I was planning to send the lease renewal via email, signed by us (the landlords) and then they can sign it, scan it, and email it back. We would then each have a copy with one scanned and one real signature. Otherwise, I will have to mail them.
I will wait for your reply before acting…I could not find anything online, and knew that you would have the answer!
Thanks again, Bill!
Hi Bill!
No news from you for awhile! I would like to know if a landlord needs a reason to enter the premises other than wishing to take a look around and making sure the place looks OK. I would not want to offend the tenant but we have not been inside since they moved in last May.
I can think of a couple reasons but I would also prefer to view it when the place is empty, so thought I could bring a realtor friend along and just say I need an evaluation for our accountant. Thoughts?
Thanks a heap in the meantime!! And hope all is well!
Hey Kelly,
Where you’re located not really, although you’re not supposed to randomly interrupt a tenants privacy, so it’s good to have a reason. This could be yearly or bi-yearly furnace inspections, plumbing checkups and/or even just to replace furnace filters and smoke detector batteries.
An evaluation may also be plausible, but make sure you do inspections of under sink plumbing while your there just as a maintenance thing, many tenants neglect to mention leaks until it’s too late or they are simply oblivious.
Depending on where you live there may be other local laws and regulations in effect, so any landlords out there hoping to do similar inspections, make sure you understand the local rules that apply where you are at.
Bill
Thanks, Bill. We had some work done on the furnace already and she is a volunteer fire fighter so she is very good about smoke detectors. I think the evaluation may be the best angle, plus then we get another one for our files in case we want to sell later, haha! I also could tell them we need to measure a few things, like a window and a vanity…Good tip about checking for leaks, though!
Hi again, Bill!
I just read some posts on a Calgary pet Facebook group that a landlord cannot charge a pet deposit nor, if a tenant gets a pet when the lease says no pets, can the landlord tell the person to remove the pet or move out. We do allow pets, without a deposit, but this sounds incorrect!
Thanks!!
Thank you so much for your video. I am so happy I found your website. I am a landlord for a year now , renting rooms in my properties. I have being so lucky with my tennants since recently when one of my tenant decided that he doesn’t like his new roommate and gave me *shit* sorry for the word for bringing that new renter in the house. So now he is giving me a hard time but hopefully everything will go fine till he leaves the premise. But you are so right, we should all treat good tenants like gold. Unfortunately from my experience, good tenants can turn into bad tenants. But that is part of the business I guess. Such a learning experience to be a landlord. Thanks again for sharing your advices and experiences.
Hi Annie,
You’re most welcome! Hopefully the landlords tips you signed up for will help you out and give you some new ideas!
As for good and bad tenants, you are right, those good tenants can turn bad and once you accept it (as painful as it can be) as a business, it makes it marginally easier.
Regards,
Bill
Hi Bill,
First, before I ask my question I want to let you know that I subscribed to your newsletters two years ago and LOVE them. I live in Newfoundland (yes, slightly further away from Alberta…ha), and though there are slightly different rules – in fact landlords don’t actually have as many rights as they do in Alberta – your articles have ‘steered’ us in the right direction. Thanks for the great advice!
So…here’s my scenario/question:
We own a two unit property and live upstairs. The tenants in the basement apartment are the best we’ve ever had (like, paying their rent a week in advance most of the time). We purchased another property to move into (yes, another two unit property), and the basement tenants have decided to move to the upstairs unit once we leave. Because we have a dog and a back yard, we’ve allowed them to have a pet when they move upstairs (note that we do not allow any pets in the basement apartment). Also, there is a four-year old child living with them.
We are now in the process of interviewing applicants for the basement property. My husband and I are debating on how much to disclose to the potential candidates with regards to both a dog and a child living in the upstairs unit. My husband thinks it doesn’t matter. However my perspective is that the basement tenants could hear the child running around (on the hardwood floors), and may not like it (note we did sound proof the two units, but it’s not 100%). I feel it would be best to inform any potential candidates now so that there are no issues later (specifically, those who don’t like the idea of a child living upstairs). What’s your experience? Also, I’m not sure if we need to inform them about the dog though….thoughts?
Hi Denise,
Thanks VERY much, I’m glad you love the emails I send out and I hope even more they are helping you! Many of the visitors to The Educated Landlord site are under the impression this is about landlording specifically in Alberta, as they are getting directed here from a site that specifically deals with Alberta tenancy/eviction issues, but that’s incorrect.
The information contained in all the articles and in the emails I send out are applicable almost everywhere. We have readers from Australia and Asia as well as across Europe and North America that stop in, sign up and both read the articles and receive my newsletters.
And your question is a great question that many landlords should be asking! What do you do about disclosing potential information that will affect the other tenants?
While there may be no perfect answer, my thoughts are you need to think like the incoming tenant. If you’re moving into a new place, believing it is child free and pet free and discover both of your beliefs were incorrect, how happy would you be? If you’re a pet/child person it may not make a difference, but if you aren’t too excited about one or either a) how happy will they be and b) how long will they stay due to potential unhappiness?
The other can of worms with this is if the upper tenants have pets, why can’t the downstairs tenants? Be prepared for this as it will come up!!
I would likely disclose this in any advertising, at least the pet upstairs, and then in any potential phone interview determine if having children upstairs will be an issue. If you can match suitable tenants together that also have a child perhaps it becomes a better situation where everyone gets along and you find two great tenants who want to stay with you forever!
One last thought, why not ask the new to the upstairs tenants if they have any friends or people they would recommend for the lower unit? If the upstairs people are great, why not try and get their friends too as great people tend to have great and similar friends!
Hope that helps,
Bill
Hi Bill…
We have just signed on a new tenant who will move in May 1. She did not have a lease with her current landlord and has lived there for almost 4 years, and did some serious out-of-pocket improvements to the house, and she is now worried he may not pay her for them. What recourse does she have? Also, our lease does not have any provision for improvements or changes performed by the tenant. We only ever had one who painted a room for a baby and they paid for the paint and did it themselves, doing a good job actually. Can one draft up an addendum to a lease concerning this? Thanks, Bill!!
Hi Kelly,
Without written agreements it can be more complicated, she may have recourse to go through small claims court to try and recover an out of pocket costs, but it may be all for naught. It may be an expensive lesson for her about getting improvements written into either the lease or a side agreement in the future.
As for your lease you may wish to either add a section or an addendum about all improvements must be approved by the landlord. You could add a section about covering costs etc, or leave that as negotiable depending on the situation.
Regards,
Bill
Thanks, Bill. He seems like a nice enough guy so hopefully he will pay up, but our current tenants are moving into that house now and are very nervous about not having a lease. So, I offered to send them the one they have used with us. Swapping houses will be a busy day for these folks!
I will draft up an addendum about improvements, as you suggested. Thanks!!
Hi Bill…
I am looking for advice/suggestions regarding listing a house with a tenant in place. We are pondering if we should list our house in Pincher Creek; inventory is very low and that could be a benefit as there would not be much competition. The tenants just extended the lease to July 31/15 and we would like to honour that, if possible, to keep them happy. I don’t think they would be ignorant and leave the house a mess for showings as she is a good housekeeper, but this would be an inconvenience. All I know is they require 24 hours notice.
If you or anyone else on here has any helpful hints, that would be great! Thanks!!
Hi Kelly,
It can often be tough listing with a tenant in place. It’s rarely in their best interest to help sell it, unless it is being sold as a rental to someone else, then they will often be on their best behaviour if it;s explained properly to them.
Where you’re located the rules do state you have to provide 24 hours notice of any showing or access by you, which can be a pain for any Realtor showing it and may also cause some headaches. I know many Realtors will simply avoid showing tenanted properties as it is extra work, but if there are few listed properties in the area that can offset the issue.
You may want to go over timing with your tenants and perhaps you can set up a consistent time it will be available for showings and then have them sign off that it will be ok for the Realtor(s) to enter during that time. If they work, you may want to coordinate to have the property available for viewings between 11 and 4 each week day and for evening or weekend showings still provide 24 hour notices, it can all come down to how agreeable the tenants are.
Alternatively you have to wait until August and see where it takes you from there.
Bill
Great advice, Bill! Not only all this, but the house needs a few repairs to realize the best money, and one cannot do that effectively with tenants either!
I guess we could always live in it ourselves, haha!
Or, do not renew the lease, lose a month’s rent, fix it up, and re-rent it…too may choices.
Hi Kelly,
One other thing to think about, if you’re selling it as a family home versus a rental again ti makes even more sense to have the tenants out when you sell. That months vacancy could more than pay for itself by getting the property sold quickly. More things to think about!
Bill
Further to this, can a landlord insist that the tenant remove exotic pets from the home if he /she chooses to list the property while the tenant is in it? She owns tarantulas that live in an aquarium…I don’t know that a prospective buyer would like seeing this in the dining room…
This property may be best marketed as a revenue property as it has been rented for the last five years plus. Thanks!!
Hi Kelly,
Sorry I missed your comment here, just saw it now. Tough call about the pets, you allowed them in before, so rather tough to evict them just for you to sell it.
I’d work on making sure the tenant can ensure they are secured and potentially hidden where possible so as to not scare potential buyers. Since you’re considering selling it as a revenue property I’d position it with the tenant that it’s in their best interest to work with you so they can stay on, you’d hate for the new buyer to be deathly afraid of spiders and insist the tenant either vacate or remove the pet, so working together would assist both of you if you know what i mean.
Bill
Hi Bill, I have a question. A tenant was referred to me and we signed a 15 months lease. Due to the miscommunication between me and the person who referred, the rent is about 20% lower than current market. I’d like to bring the rent to the market value. Can I raise the rent after one year anniversary, or do I have to wait until the lease term finish? This is in Alberta.
Thanks!
Hi Lee,
Just about everywhere, once the lease is in place you are stuck with the rent stated there until the term ends. However, you may be able to negotiate a new lease with them and if that is the case the rules can change as it is mutually agreed upon.
If you know the rent will be going up 20% in say six months, you might want to offer them a 10% increase starting now if they void the current lease with you. This way they can lock the 10% increase in. If they really love the place and want tot stay it may be attractive to them, if they planned on moving if the rent increased it may not, so it’s a case by case situation.
Regards,
Bill
Hi Bill!
I sent you an email about lease extensions but maybe that would also make a good idea for a blog topic. I know you are busy so no worries!
Here is another topic idea: SNOW REMOVAL!! Thankfully we have it checked off as the tenants’ responsibility, and have not had anyone expect us to take care of it, but I did get an email yesterday from our tenant in Pincher Creek which got almost three feet recently! The Town does not plow back alleys but thankfully the apartment block next door has a garbage bin back there near our garage so have to contract out weekly snow removal. The snow fell in between garbage pickup days so the tenants had to shovel over 100 feet to get out to get to the airport! Luckily I got the name of the new bobcat guy so the tenants can hire him if required. Our garage is a feature of our property so access is important. Does it ever become a landlords’ responsibility if the lease marks the tenant as being responsible, in your opinion?
Thanks, Bill!!
My apologies Kelly, I originally saw your email on the phone an didn’t have time to reply, so I promptly got distracted and forgot about it. I just emailed you back directly with my thoughts.
It may not work out as a blog topic, simply because the rules vary from state to state and province to province so what I suggest for someone in Alberta may be illegal for someone in New York and I don’t want to lead someone down the wrong path.
Snow removal though I may be able to work with!
Big picture for all landlords though, if any one gets ticketed for the sidewalks being covered with snow it is rarely the tenant, it is the property owner. So depending on local rules, you either make the tenant(s) responsible via the lease or you have a backup plan in place to forward any ticket costs to the tenant to make them appreciate it more.
Hope that helps,
Bill
Hi Bill my tenent has moved without paying me rent for month and a half and damages to my reantal property ,i dont know where they have moved i filled claim against them and send them papers through registred mail .i am woundering if they dont accept the registred mail and it comes back to me what should i do , i used the same address of my property hopefully they might have directed their mail to new place where they live now.what should i do if the mail comes back to me ?
Thank you.
Jack
Hi Jack,
It really depends on the local rules and regulations where you are located. Maybe places have methods where you can “serve” tenants to appear at hearings without physically serving them, but at the same time they are also easily appealed.
You’ll need to check your local laws and rules on this if you wish to continue to move forward, but usually by the time they have vacated it’s too late. Even if you do track them down, you often just end up with a judgment and they have no money to pay anyway, so now you are frustrated, still don’t have the money and wasted time and positive energy just to get more irritated.
Bill
Hi Bill
Hope all is well with you. I have been looking at having my parking spaces repaved in the back of my apt building. The price is looking like it is going to be 10,000.00 give or take a little here in good old Med Hat. Don’t know what I was expecting price wise but have to say I did gulp when I saw the estimate. The guy told me that at such time you sell your property it increases the selling price by at least twice the amount you paid to have the new pavement. Just wander if you think this is true or just a bit of you know what.
Thanks again for all your great work and the time you took chatting with me last summer.
Lorie
Hi Lorie,
My apologies for not responding quicker, I saw this when it came in, was busy that day and then promptly forgot about it.
In answer to whether it would return $20,000 in value, I would be hesitant to say. If your current parking space is horrendous, then there is a very good chance it will help increase the value, if it just needs work, then perhaps not.
Where it will really return value is in curb appeal to new tenants, current tenants and potential buyers of the property. Better curb appeal can translate into higher rents, longer term tenants and less work for a buyer, so all of these can drive up values. Whether it doubles the money put in……
If that was the case, wouldn’t every building up for sale have new parking lots?
Also remember, whenever you’re getting a large project done on a rental property (or actually anything), it never hurts to get two or three estimates from different people, just to make sure no one is taking you for a ride on your shiny new parking lot!
Hope all is well in the Hat!
Bill
Hi Bill,
I am a college sophomore who would like to make landlording my career. I am currently majoring in entrepreneurship with a
minor in spanish, Army ROTC, and personal financial. What else what would you recommended I do to prepare for landlording before graduation?
Hi Peter,
One of the most under estimated areas for landlords is people skills. You need to be able to talk to and relate to tenants, prospective tenants and contractors. I’m not sure of a specific course that could help with this, but public speaking groups like Toastmasters would definitely assist you and I’m sure the ROTC has some benefits in that area as well.
Other than that having some handyman skills would be an asset, so sitting in on some Home Depot or Lowe’s weekend workshops would definitely benefit long term.
As far as actual courses offered by colleges, not much comes to mind. True you need a solid business understanding, and you’ll gather the basics of that from your personal finance course, more advanced courses gravitate to larger business models which don’t necessarily translate down. If your goal is to get into commercial buildings and larger projects it would be beneficial though.
Understanding economics can be extremely helpful when locating areas and cities more prone to longer term growth, but economics in University bored me to tears, it wasn’t until I was in the real world and could see economic factors playing out around me that I started to get a grasp of it (maybe it’s just how I learn?).
Anyway, hope that gives you some areas to start thinking about.
Bill
Thank you bill, also would you say being a landlord is good for a career or should I look for another career?
Hi Peter,
Sorry I didn’t see your reply until today. The answer to your question is a little bit trickier than it seems. First, if you plan on simply surviving on the income from renting out properties, you need to determine how much income you require to survive and thrive.
If you want an income of $24,000 per year, you would need $2,000 per month of rental income above and beyond all your expenses. If you have a property that cash flows $1,000 per month after all expenses and reserves, you would simply need two properties like that and you would be fine.
If you have a property that cash flows $500 per month, you would need four units like that. All make sense so far?
Well, if $24k a year is on the low side of where you want to be, you might have to quadruple that to be in your happy place. That means you would need four times as many properties to reach that goal.
Now that’s just the back end. We still haven’t talked about purchasing a property.
You would need to qualify to get a mortgage on each and every property, so you actually need a steady job before you begin so you have a source of income and a downpayment eventually. This would have to be replicated each time to get the second property and so on. It will not happen over night.
The first four years of being involved in Real Estate, I kept my well paying full time job until it reached a point where being employed was costing me money and I had enough income from Real Estate ventures to allow me to purchase more properties.
The mortgage rules were easier back then and due to all the complications from the credit fall out it is definitely tougher to qualify, so it may take even longer to reach the same level we did in four years.
Plus we also were fully engaged with Real Estate, we bought and flipped properties to provide additional income and down payments. Our process was buy and flip a property or two to fund our lifestyle, repeat again to get a downpayment on a rental and repeat it again to purchase another property and we did this for multiple years in a row.
So ultimately being a landlord might be an end goal, it might not be something you can just step into.
Make sense?
Bill
Hi bill,
Thank you and yes it does make sense.
I would love to learn how you deal with the check out process and return deposits. Just and idea for a new article. Thanks again, Annette
Hi Bill!
We are not having much response to our ads for our house in Pincher Creek as it is definitely a tenant’s market there now as opposed to last year when it was the complete opposite! Would it be a good idea to offer a rent incentive, say, the first 3 months at a reduced rent if you sign a one year lease, or something like that? We are competitively priced and our Kijiji ads on both Calgary and Lethbridge are getting lots of views. Any tips would be much appreciated! Thanks very much!!
Hi Kelly,
Personally I hate rent incentives as it’s like devaluing your property. A couple thoughts for you. You believe you are price competitive and you are getting lots of views, are you getting lots of calls as well?
If you’re only getting calls, you may have a good headline for your ad, which attracts views, but the actual ad itself isn’t compelling to the readers. You have to consider it a multi step process when it comes to your ads.
The headline gets them to look at the ad, the written ad itself helps you screen tenants you don’t want and attract tenants you do want and then it directs the reader to contact you. If you’re not getting calls, or a very low number of calls, maybe start by re-writing the ad.
If you are getting lots of calls and lots of showings and people still aren’t stepping up, then perhaps there is something about the property. That requires different steps. One of those would be to follow up with people later and ask why they chose other properties. It might be something simple you are missing or don’t notice and just getting some feedback could help you out.
Hope that helps,
Bill
Thanks. The ad has a lot of info, including the fact that we prefer a one year lease, n/s and pets are negotiable, and excellent references are required. We have had 6 people reply, two of whom were illiterate and could not read! No showings yet but one emailed this morning and wants to see it. I guess following up would be an idea to try.
Where can a landlord go to get proper forms that are acceptable in court and up to date,including 1)Application for Rental Accommodation, Residential Tenancy Agreement, Accommodation Inspection Reports, and Notices To Tenants, ect…? Currently I order through “The landlord and Tenant Advisory Board” out of Edmonton,A.B. Is there a government or any other site we can use to print forms needed off or any where closer to Southern Alberta (Lethbridge & Area) please consider the fact that we do not have access to RTDRS so any forms regarding those services are not needed or irrelevant. Thank-you in advance for any infomation you can provide to assist us! looking forward to your reply and have a wonderful day!!
Hi Cheryl,
Sorry for the delayed response. The correct answer would be to go through a Real Estate lawyer, they typically have access to these type of forms and by acquiring them through a lawyer they are typically solid forms.
Second to that would be via local Landlord and Tenant boards, although many of these forms may not be quite as ironclad.
Finally local office stores like Staples and Office Depot carry a selection of forms they typically sell, but these often are very generic and should likely be reviewed also by your lawyer.
Hope that helps,
Bill