What is expected from me?- Concisely, the landlord is responsible for ensuring that the premises and the land meet health, safety and other standards established by local, provincial, and federal law. The property must be reasonably suitable for occupation subject nature and location. Inclusions in the tenancy, such as appliances, should be kept in working order. Rental rates should also be kept in equilibrium with the local market.
What can I expect from my Property Manager? (What am I getting for my money?)
- First of all, read and understand your contract because this is the description of the services to which you are entitled and depicts your rates. You may have just a simple tenant placement contract but you may also have a full-service management agreement. In a full-service package, I'm on call for emergencies 24-hours a day. In an average day I could be collecting rent, maintain accounting records, making bank deposits, responding to maintenance requests, organizing trades people, paying invoices, resolving disputes, inspecting properties, attending arbitrations, tendering projects, taking phone calls, preparing reports, showing properties, screening applicants, and much more. As a property owner you will also receive a personal itemized monthly statement of account. copies of invoices, and professional advice.
- Keep in mind that I can provide virtually any aspect of service within the realm of Property Management but it is your duty to negotiate a contract that meets your own specific needs. If you find that your needs have changed over time, advise me and I can likely revise your contract to meet any new requirements.
What should I not expect from a Property Manager?
- Although I work for YOU, I will not engage in any unethical activities or break the law. Our legal system can be frustrating at times but there is usually a way to obtain similar results the right way. Listen to what recommendations are given to avoid undo complications.
- While a wealth of knowledge and resources, I am not the be-all-end-all. Repairs, account collection, legal representation, private investigation, and real estate sales are items that typically require the attention of another party who specializes in the respective field of work.
- I am on the job 24 hour per day, 7 days a week, but, outside of office hours, it is appreciated when non-emergencies are deferred until the next business day.
- Any Property Manager cannot guarantee to rent your property by a specific date or at a specific rental rate. The market is controlled by external forces, which we have no control over. I will provide my pledge to ensure that your property receives appropriate exposure and that I work the market in your favor. I profit when you do and the incentive to prosper along with my clients is built in.
What costs should I be prepared for?
- The rental business does not come without certain costs. First and foremost, a property needs to be maintained. This can include but are certainly not limited to repainting, replacing appliances, pruning trees, spraying for pests, repairing a wide variety of components, replacing locks, replacing smoke alarms, cleaning ducts, servicing furnaces to name just a few. There are tenant placement fees and arbitration costs from time to time as well.
Why does it seem to cost so much for a tenant placement fee?
- When a property becomes vacant, I undertake the replacement of the tenant(s) with another of equal or better quality. Many hours and significant expenses are incurred. Advertising, long distance, travel, credit checks, photocopies, and optional signage are common hard costs that can exceed $300 per month. Time committed spans phone calls, showings, screening, and administrative considerations. A typical vacancy involves more than one person and often more than 10 man hours. A plumber's bill for a typical commitment of time and hard costs would be around $1000 if not more.
Should I consider vacation rentals in the peak season?
- Do your homework first! Costs are considerably higher in maintaining a seasonal rental. There is more repair and maintenance due to heavier use.
You placed such great tenants in the past. Can you do it again?
- Probably. I go to great lengths to do so. Problem-free for you is also problem-free for me. Most owners also choose to be involved in the choice of tenant so that you are aware of the lengths I go to, to prepare for a quality experience.
The tenant used to be so good but recently turned a new leaf.
- No matter how much care and attention is exercised, it is impossible to guarantee the actions of a tenant. Tenants are interviewed, references are checked, and credit reports are obtained. While most tenants come and go without incident, a tenant may try to sneak in a pet, smoke indoors, pay rent late, cause damage, or skip town. I drive by properties in my day-to-day travels and offer property inspections in performance of due diligence. Certain properties and certain neighborhoods are prone to more problems than others but the potential of the occasional problem of varying magnitude is a risk that comes with the territory.
Can I include split utilities in the tenancy agreement?
- Yes, in most cases you can. The split is typically anywhere from 50:50 to 30:70 and should be negotiated during the creation of the tenancy agreement. It can be extremely difficult to renegotiate utility splits when one or more tenants are not agreeable. Landlords should be aware that if a tenant were required to place the utility account in his or her name when being split, if disputed, it would likely be found to be unreasonable.
How much rent can I get?
- For the most part, the market determines the rental rates obtainable. The market can, from time to time, wane in demand, over-supply, receive seasonal fluctuations, and be influenced by unforeseen forces. The condition of your property also affects the obtainable rent.
Can I raise the rent?
- Yes, you can raise the rent subject to the law which requires three months notice which must be properly served before the end of the month preceding the month in which the notice begins. For example, if you wish to raise the rent for May 1st, you would have to serve notice before the end of January. Rent can typically only be raised once per year subject to the maximum prescribed rate established by the RTB.
Can I inspect my property?
- Certainly. A minimum of 24 hours notice must be given to the tenant unless a recognized emergency is at hand.
Why do we have to wait for notice to be received?
- Notice, if verbal or by hand-delivery is deemed received immediately. If notice is posted at the property or mailed by regular mail, notices are deemed to be received after 3 days. If mailed by registered mail, notice is deemed to be received after 5 days.
Do I have to return a security deposit?
- Yes, unless there are valid deductions. Keep in mind that a landlord may not withhold a deposit for reasonable wear and tear. A landlord may also not withhold a pet deposit for anything other than damages related to pets. Interest is paid on all returned funds subject to the rate prescribed by the RTB. On occasion, it may be necessary to file for arbitration to obtain a holdback on deposit funds.
Can I remove a service or facility?
- On occasion it may be necessary to remove a service such as laundry or parking. Be prepared to compensate the tenant fairly in lieu of the exclusion.
Where do I find the Landlord and Tenancy Branch?
Here you will find answers to your questions. If not, it will provide with the right number to call to obtain your answer.
