Advice on renting out my condo? - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

Mass_nerder · 07-06-2011, 09:04 AM

I'm moving to Halifax in August for school.
I own a place here and plan to rent it out, but I'm a little nervous to be out of the province, and still being a landlord.
Anyone done this before? If so, any tips?

Jbo · 07-06-2011, 09:14 AM

Intrested in this as well.

Curious of Property manager versus self land lord...good/bad stories and experiences.

Mass_nerder · 07-06-2011, 09:16 AM

I was thinking about a property management company as well.It would save me from leaning on my parents to act as landlords on my behalf, if things need to be done, while I'm away.
I know a lot of property management companies usually charge around 10%, which isn't that much, but I'm barely going to be breaking even on the rent as is.

bomba · 07-06-2011, 09:21 AM

I'm going to get into this as well. From the people I have talked to that are active in the landlord game currently they all say to make sure you are diligent at screening your tenants (references, credit check, etc), put in place legal contracts that outline clearly the rules so both parties are clear how to deal with issues, and always make sure you always treat it like a business.

ken0042 · 07-06-2011, 09:23 AM

Quote:

Originally Posted by Mass_nerder

but I'm barely going to be breaking even on the rent as is.

Don't factor in the mortgage principal payments into the equation; because you are "getting that back" as it pays down your mortgage.

So if you have a $1000 payment; $400 may be interest and $600 principal.

Mass_nerder · 07-06-2011, 09:34 AM

Any advice on where to get lease document?
Do they need to be professionally drafted?

Jbo · 07-06-2011, 09:40 AM

I know there are some threads on Property Management, but none seem to be updated recently.

I was looking at one property management company that wanted 400 bucks as an inital fee, 400 once a tenant is in, and an additional 10% per month...that seems really really high. I have also heard stories where they have done repairs and hit the owner with $1,000 bill out of nowhere.

Having tried to rent it out myself using rentfaster.ca...I just do not have the time for it. You place ad, get phone calls and emails at all times. Have to respond, show the unit, do a application, screen the application, all while being bothered constantly.

Never had experience with any of this and feeling out of my depth. I'm almost at the point where I just want to sell...but I'm stuck between taking a loss on the condo...or renting it out and hoping the housing market may slowly recover.

Mass_nerder · 07-06-2011, 09:45 AM

That's the exact situation I'm in.
If I sell, I'll barely be above water, but I'm feeling completely out of my depth.
I obviously don't have a lot of extra cash kicking around to cover significant charges from a property management company.
I would absolutely like to sell, but I don't want to lose an investment, especially if the Calgary market is starting to turn around.

Shades · 07-06-2011, 09:46 AM

If you're not using a property management company, read up on the Residential Tenancies Act.

Every landlord I've ever had always takes a damage deposit but never had a move-in/move-out Inspection Report filled out. Luckily, I'm a good tenant, but it would be so easy to screw ignorant landlords over.

Good info here-http://www.servicealberta.gov.ab.ca/Landlords_Tenants.cfm

worth · 07-06-2011, 10:00 AM

Use a reallllly long stick.

Travis Munroe · 07-06-2011, 10:05 AM

I would avoid the headache and go with a property management company. It will put your mind at ease while you are gone!

bizaro86 · 07-06-2011, 10:09 AM

Quote:

Originally Posted by Shades

If you're not using a property management company, read up on the Residential Tenancies Act.

Every landlord I've ever had always takes a damage deposit but never had a move-in/move-out Inspection Report filled out. Luckily, I'm a good tenant, but it would be so easy to screw ignorant landlords over.

Good info here-http://www.servicealberta.gov.ab.ca/Landlords_Tenants.cfm

This is important advice, get the inspection report SIGNED by the tenant.

Being a landlord isn't difficult, but it is hard work. When you're taking responses for your rentfaster ad, try and schedule a bunch of showing a short time apart, instead of making a unique appointment time for each person. Otherwise you'll spend your life doing showings. The most important thing you can do with your ad is take good pictures. If you can't do that, pay rentfaster the (nominal) fee to come take them.

Tenant screening is key. People lie on the application forms, your job is check the facts, call the references, and make sure you're not getting taken in by someone. Ask yourself how good a judge of character you are. Getting a good tenant is the most important part.

If you do decide to be a landlord from a distance, it would help to have someone local you could call in case of emergency to help you out. The other thing to do is be prepared to eat some extra expenses. If the toilet stops working, you can't go over and look yourself if you're not local, you just have to send a plumber and pay the bill.

That's probably still cheaper than getting a property management company though, as you could expect to pay 10-12 percent of the rent, plus a fee every time they re-lease it for a new tenant.

Muta · 07-06-2011, 10:13 AM

Hey Mass, I'm in the same boat. Going to school in the States in January, and looking at options for my condo. I don't want to sell right now as I'm waiting for the LRT to be complete / almost complete, but I'm not sure what to do.

I definitely don't have an interest in managing it myself while I'm busy abroad. I'm thinking of a property management company as well, and if that doesn't work, I'll just sell it outright. You and I should talk. If I go the property management company route, I'll be leaving my place new and fully furnished - maybe you would be too.

.. I think you know where to find me, hahaha....

Jbo · 07-06-2011, 10:14 AM

Side question:

Does a property manager hold any responsibility for something that goes wrong? For example, if they get in a sketchy tenant that bails early on the lease...or say there is excessive damage that occurs etc. Are they responsible at all?

My fear is that they just quickly get someone in there, collect there fee and have zero responsibility to make sure the unit is rented to the best tenant.

I've turned down 5 people already in the screening process.

bizaro86 · 07-06-2011, 10:16 AM

Quote:

Originally Posted by Mass_nerder

Any advice on where to get lease document?
Do they need to be professionally drafted?

You could get one professionally drafted. Rentfaster has a free one that you can find here.

http://www.rentfaster.ca/assets/ftta.pdf

Mass_nerder · 07-06-2011, 10:24 AM

If I do end up renting it out personally, anyone have an idea on where to get credit checks done?

bizaro86 · 07-06-2011, 10:35 AM

Quote:

Originally Posted by Mass_nerder

If I do end up renting it out personally, anyone have an idea on where to get credit checks done?

These guys provide a tenant verification service, I think it's ~$60-70 bucks, and it includes a credit check. Might be good if you're not familiar with how to read a credit report.

http://creditinfocanada.ca/

Also www.rentcheckcorp.com provides reports, but I believe they require a membership to use their services.

http://www.tenantverification.com/can/fees I believe these guys are the cheapest of the bunch if you just want a straight credit report.

Hope that helps

Winsor_Pilates · 07-06-2011, 10:40 AM

If you're out of town, property management is likely the way to go.

General advice I go by: Price your property competitively(slightly lower) than others like it. It will help you generate more interest, and be able to pick between various good renters.
In the end, having a good renter is worth the extra $50-$100/month you might have been able to get if you had gone for top dollar.

Method for showings: Place your ad & tell all inquiries you will be showing the place at a set date/time.(eg. 2PM Saturday)
This way everyone shows up at the same time and you do group tours. Have a credit app & rental application ready for any who want it, then select out of those who apply if you like them.
My friend uses this method & it saves him from having to go back/forth for showings. Also makes it seem like the place is in demand, and gets him the rent he wants.

Bill Bumface · 07-06-2011, 10:58 AM

My friend did a very thorough check, calling employers, past land lords, and rented his place to a seemingly very nice guy, his wife, and 2 kids.

It turns out he was the crack addict that was just shot and killed by police a couple months ago.

Have fun.

My rule of thumb, pick people that have a very good reason to be renting. Young couples, students (expect parties though), and new immigrants. With every middle aged family that seems to have good jobs there is always the "hmmm... so why are you still renting with a good job when you're 40-50?" factor. I know there are lots of people in that demographic that would be great tenants, it just seems to be the highest percentage of people who will be constantly late on rent and whining about everything also seem to be in that demographic.

If you get a young couple or students, it's often a short term transition place. They won't be asking you to re-sod the lawn because it's not green enough for them.

chemgear · 07-06-2011, 11:05 AM

Quote:

Originally Posted by hulkrogan

My friend did a very thorough check, calling employers, past land lords, and rented his place to a seemingly very nice guy, his wife, and 2 kids.

It turns out he was the crack addict that was just shot and killed by police a couple months ago.

Have fun.

Wow, it was that guy? Crazy.

WP is right though, a few extra dollars probably isn't worth the outright obvious nutbars that you'd probably be stuck with. Hopefully the larger sample of interest with the lower price will allow you to pick around/avoid those ones.