Resources for Landlord

As mentioned Real Estate is part of my investment portfolio and Rentals are a sub group of that.  Recently I learnt a lot from a crazy tenant and thought that I'd share one of the most important thing I learnt - where to go to for information.

If you have questions regarding your rights and what you can do as a landlord you can go to Service Alberta's Landlord/Tenants website for information, forms, common questions etc.  If you find this a lot to read you can also called the Service Alberta number (1-877-427-4088) and ask your questions to a live service representative.   

When I was dealing with my tenant I dreaded having to dig and navigate my way through Alberta's Landlords/Tenants Legislation.  The website and the Service Alberta number really helped make things clear.

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Home Depot Receipts Emailed

With every retail store trying to collect my email address I usually automatically deny requests for email addresses at the till.  But I was using the self check out one day, and when the display asked if I wanted my receipt emailed to me I thought why not.

I found out today, that they remember that preference to the credit card.  This is very helpful for me, because I go to Home Depot quite a bit for any maintenance purchases for my rentals, and I need to keep the receipts for taxes.  Saves me from having to scan in my receipts.

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Buffer in Checking Account

Being super busy this long weekend, I did not get a change to deposit the rental checks for August until today.

This months two of these checks did not clear.  Luckily they are from the same bank as the one I bank at, so the teller told me when it did not clear, and I did not deposit them.  This avoids an NSF (No Sufficient Fund) charges on the renters side, and me the trouble of having to get more checks from them.

Two things I took away from this:

1. Remember to deposit rent checks as soon as possible.  Because apparently if the money is in their account the renters spends it (not know that they may rent coming out soon).
2. It always scares me how people don't plan/track their spendings.  Either you track your expenses and know how much you should have in your account.  Or I usually put a buffer in my accounts in the off chance I forget a bill/automatic payment that is suppose to come out.  NSFs are not cheap, nor is the hassle with having to deal with whatever payment that gets rejected.  It is also possible that some renters live pay check to pay check and don't have savings or emergency funds. I once had a tenant call to ask if they can get a few extra days with paying rent, because they had bought flights that month instead.  That's a whole other post - the need to have emergency funds.

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Photo Sessions

Saturday the photographer came and took the photos for AirBnb.  She loaded them last night.  They look great.  This morning I got an inquiry for a week stay.  Coincidence?  Not likely.

While she was there we talked about her taking photos for the sale of the condo when we are ready to sell.  Then tonight Beau saw an unit sold in my building for $10K more than what we were expecting to sell it for last winter.  I think the flood has really changed the real estate market in Calgary.  In view of this new information, I am going to also list my condo for sale.   I scheduled the photo session for Thursday night.  Hopefully we can list the condo on Friday.

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Short Term Rentals

So I’ve decided to go with Airbnb to list my condo for renting out short term.  The major reason is because Airbnb has no upfront cost.  You pay a percentage when you actually get reservations.

Being unusually unprepared, I hastily got some photos taken and posted it.  Thought I share what I’ve learnt so far.

• The price posted when a potential client does a search may not exactly match the price you set per night.  This is because if you put in additional costs such cleaning fee etc. it will be added into the posted price.  As a new poster you want to under price the market so you get some reservations and good reviews.  Therefore, do a couple of searches with a couple of length of stays and check what pricing comes up as you desire.  
•  AirBnb offers free professional photos, take it if it’s available in your area. It will look more professional than my iphone photos.  It also gets an AirBnb verified stamp, which gives potential clients an extra level of comfort that this space is verified and no some pie in the sky space that might not exist when they arrive.  Our photographer emailed within 24 hours of me putting in a request.  We booked something for this weekend.

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One thing at a time

Has it been 8 months since I updated!? Time has really flown by.  To be honest, I’ve been itching to blog, but time just got away with me.  I have so much to tell, let’s take it one thing at a time.

First thing.  I bought another rental.  That brings my total number of properties to three (or 5 suites).  Sis wants to buy another one, and now Mom and Dad want one too.  It’s funny.  When people hear about how much money we can make on rentals, everyone wants to do it.  It’s like the new fad amongst our friends and family.  But what they don’t realize is the amount of work that goes into it.  Well, Sis, Mom and Dad does because they have had to help on occasion when Beau and I just didn’t have enough time. 

This month we had two new sets of tenants move in.  It basically consumed all of my free time.  Between interviewing potential tenants, doing minor renovations, cleaning, painting, shopping for replacement appliances, we were at one of the houses everyday after work or on the weekends.  One place, the oven took me 3 hours to clean.  Sure we charged the tenants money because they didn’t clean it.  But not enough to cover the 3 hours of pain and breathing in fumes (I had to resort to Easy Off).  How could someone be so dirty?  This is something you cook food in!

Finally yesterday everyone moved in and we are scheduling a weekend of catching up (on sleep, with friends, on laundry etc.).  Phew!

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Rent This House - Take II

In case I'm not busy enough, a friend of my called and asked if I can do some after hours data entry for her this month.  You know me.  I don't really say no to making more money unless I really have.  Since Wednesday I've been working a second job after work.  I feel a little bad because this leaves Beau on his own during the weeknights for reno but he understands.

Anyway, I finally got around to posting the rental ad today.  I got up bright and early to do this because the tenants have been asking about it.  I think they were worried about having to pay the rest of the year.  Already we've got an email and phone call.

Since we have a month to do this we are going to try a more relaxed approach.  We are offering two showing times, one week night and one weekend to best manage our time.  The current tenants did offer to do the showings for us.  I was tempted given my busy schedule.  But Beau pointed out that meeting the potential tenants in person is an additional chance to vet them.

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Property ownership - It's a marathon

Just when I think we can get a break from taking care of rentals related work, our favorite tenants are moving out.  We like them because they are nice people, low maintenance, on time with the rent, and did a good job keeping up the yard and garage they were using.  Unfortunately they are moving out of province.  The thing is they are leaving 6 months before their lease is up.  According to the law they are responsible for paying to the end of the lease.  However, we are obligated to make a serious attempt to try and replace them before that happens.

Honestly I’m just bummed about having to look for more tenants.  This will be the fourth time in less than 5 months.  Oh well.  It's not that bad considering we bought both places, revnovated, and found 3 sets of tenants in those same 5 months.  Property ownership is not a sprint but a marathon.  Look at the bright side.  They gave us lots of time so we can take our time looking for good tenants.

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Rent this house

In the last two weeks we have had quite a few showings for the rental.   However, most of the people that were really interested we did not see enough potential to even run a credit check.  If someone shows up willing to give you cash for security deposit and first month rent provided you don’t run a credit check, not a good candidate.  If someone fills out an application but gets all nervous when you say Social Insurance Number and Credit check, not a good candidate.  If someone shows up with 3 adults and a child for a small two bedroom and one bathroom unit, not a good candidate.  I know.  Who am I to dictate how many people is too many people for a place?  But I am being a little picky with this place because I just spent all this money renovating the bathroom and kitchen.  Wear and tear for four people is very different from wear and tear for two people.

This weekend, we booked six people to look at the house between 10 – 12, and only two showed up.  We have noticed a pattern about showings.  Most of the no shows happen on weekends and especially in the mornings.  In future we are going to do weeknight showings only.  Anyway, it wasn’t a complete waste of time, because the second couple were promising enough to run a credit check.  We called the current landlord for references and everything looks good.  Beau is going to call them today and talk about signing a lease.

As I was telling Sis about this she said are you ready for the next one?  Right now I’m not.  Beau and I spent the whole summer working on our various properties.  He has one of his own rentals coming up vacant end of this month.  I think we are just needing a little break and just run on maintenance mode for a bit.  Before you call us lazy we also have other things we are working on: like jobs, educational upgrades, friends, and family.

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Open box/display units

I’ve been a bad planner.  I completely forgot that if I renovate a kitchen and add in a dishwasher and hood fan, I actually have to buy and pay for said dishwasher and hood fan.  So this week when my renovator calls and says Rental A kitchen is now ready for installation of hood fan and dishwasher I was not prepared.  I did not do the research and price comparisons.  I don’t have time to wait for the sales and discounts.

After a  quick tour of the usual suspects like Sears, The Brick, Trail Appliances, and Ikea.  I found the cheapest and best options.  Believe it or not Sears actually have some very cheap but good appliances, if you are not looking for all the bells and whistles.  I found a Sears over the rand microwave for $200 and dishwasher for $350.  Ikea also have a pretty good over the range microwave for $200.

Sadly, Sears doesn’t carry anything in stock and it was going to be a week wait for delivery.  As I was about to grab option two – Ikea – Beau called.  He suggested looking at Future shop because he saw some that were reasonably price when he was there early in the day.  Since there is a Future shop next door I walked over.  JACKPOT!  They had a over the range that is being discontinued, so I got the display unit for $190 ($100 discount).  Also, I bought a dishwasher that was open box for $250 ($120 discount).  The sales guy took everything down and we manage to fit both into my Honda Fit.  No delivery charge.  Is it weird that saving lots of money give me a high?

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