A lot of landlords get into the investment business with very little thought about how to deal with tenants as a landlord. Here are 3 things you must consider before becoming a landlord

1) Landlords, At the very least need to understand the landlord-tenant regulations in your province or area. Very few jurisdictions do not have them. Understand your rights and obligations along with the rights of tenants and how to address tenant issues.  Most tenants these days are quite savvy and know what you can or cannot require them to do. They will agree upfront with a request to get the unit and then take you to the tribunal to reverse the requirement. So follow the law.

2) Secondly - maintain your property. Keeping a property in good shape will attract tenants who don't want to live in less-than-desirable conditions.  You are in control of that and you should want to be proud of what you are offering to people to live in. Most tenants want to make their rental unit feel like home and giving it to them in good condition will provide an incentive to keep it that way. You have to question someone who wants to live in dilapidated conditions- sure it may be the price, but you have a duty to  ensure it's liveable. Ask yourself - would you live there? Would you want your family members to live there? Don't be a slumlord - it's not a perfect strategy, but certainly will eliminate a lot of professional renters who are just looking for a new place to squat.

3) Screening tenants - Learn how to spot a future problem tenant(s)  and how to verify the information they provide to you.  There are usually some red flags that landlords have ignored initially.  I have done that myself out of sympathy for the situation. But keep in mind you are running a business.  Keep it professional.  Credit ratings are not the end-all or be-all. But they are a blueprint of past behaviours. Keep your emotions separate. One incident can destroy a credit rating, but it does not always mean they are not worth the risk. Be sure to check the patterns of their payment history. How far does it go back and has it been consistent? Learn how to read  and interpret the credit report

I will continue my advice in another blog. I didn't want to make this one too long.

Feel free to reach out if you need help with renting out your property

Alexia 

One of the questions I get asked all the time is, " What should I do before putting my house on the market?"

When you’re getting ready to list your home, it’s important to ensure that you are showing it in the best light. Taking time to highlight its strengths and fix some of its possible weaknesses can make a big difference in how fast it sells. 

Here are my top 4  recommended repairs to make before selling your home.

Repaint walls.

Giving your home a fresh coat of paint is one of the most cost-effective ways to spruce it up, and generally, it can be a do-it-yourself project. Make sure you cover any walls with scratches and chips and consider updating any accent walls with a more neutral coat. 

You'll get back 100% of the cost of the painting. Totally worth it so please don't skimp on it

Repair floors.

Hardwood floors are a very desirable feature in a home, so you want to ensure they look their best by fixing scratches or dull areas. If your carpet is worn or stained, consider replacing them. And don’t forget the tile in your kitchen or bathrooms. Re-grouting can go a long way in making dingy tile work look brand new!

Refresh the landscaping.

Show buyers your home is the full package by dressing up the outside as well. Clean walkways and driveways, plant seasonal flowers and plants, trim hedges and trees, install outdoor décor pieces and fill in mulch and gravel.

Fix your fixtures.

Leaky faucet? Rusted drains? Loose drawer handle? Making these small fixes can make a big difference to potential buyers with detailed-orientated minds. When you take care of these small details, potential buyers will believe that you take care of  everything else in your home.  Improve your kitchen. An outdated kitchen can be a real eyesore in a home. Updating cabinetry, repairing or replacing countertops, and installing new faucets and sinks may be worth the investment.

I hope this list helps

- Alexia

“Canada's red-hot real estate market showed signs of cooling down in March as both the number of homes sold and the average selling price declined from the previous month's level.”

CREA ( Canadian Real Estate Association) reported today that homes sold for an average of $796,000 in March. That’s a decrease of approx 3% from the February high of ($816,720).

It is important to note that the average selling price is still up by more than 11% from where it was last year.

Although market activity continues to bustle, those of us on the ground started feeling the shift at the beginning of March.  Even without supporting data- I could see it. 

Whispers of, “ I was expecting at least 10 offers and received none.” “I’ve only had one showing all week on a new listing.” Started to permeate quickly through the halls of real estate. Many chalked it up to March Break and the yearly cycle at this time of year. There is definitely some truth to that and thus why it was hard to call it a trend.

With requests showing down, fewer offers received on offer night, NO offers received on offer night, more homes for sale on the market, higher interest rates, and the number of days it was taking to sell increasing- these were early signals pointing to a change in tide.

But for how long??? That remains to be seen. 

If you’re in the market to buy this year, this may be the opportune time for you.

Considering that market activity fluctuates from area to area, it’s a good time to talk to your agent about what your game plan should be right now.

Trying to time the market in hopes that it will crash may not be a solid long-term strategy. As we’ve seen many times, it can flip the other way suddenly and without warning.

I’m a firm believer in making a move when you’re ready. 

Whatever you decide to do, market knowledge is key in making the best decision for you. 

Are you ready?

- Alexia

Your country home and moving up expert!

Many Canadians ( myself included)  were anxiously awaiting this morning's interest rate hike announcement by the Bank of Canada. It had been speculated for months that we would be seeing quick interest rate increases within a short period of time.  I was holding out hope, as usual, due to my naturally optimistic and ebullient nature, that we would perhaps only see a small incremental increase. It's not a secret that speculators aren't always right - they are often wrong. A Lot!

Alas, that was not to happen today :) The Bank of Canada has indeed hiked its benchmark interest rate by half a percentage point. It is the largest increase since May 2000. This latest increase is expected to prompt the big 5 banks to raise their prime rates by half a percentage point to 3.20% from 2.70%. YIKES 

I know, I get it. Rates can't stay low forever. Artificially depressing interest rates have been largely responsible for the huge run-up in housing prices that we've been experiencing. This has resulted in making buying a home unaffordable for many Canadians.

But don't let anyone fool you - though I believe the increase will help to cool the housing market. Raising interest rates won't lower global oil, base metal, lumber, food seed prices, or fertilizer.  My hope is that the actual causes of inflation ( supply chains, War in Ukraine, pandemic panic) will be finally resolved.  

Yes, the government will of course take credit when it heads in the direction they want. They can have that "attaboy win" if it means they'll stop the hikes.  After all, by just saying they're going to increase rates- I'm sure will have much of the same effect as actually increasing them. 

The psychological impact can extend much wider than the actual financial impact. It's human nature. Scare people straight into what you want them to do, without doing what you said you would do.

As many of you reading this know- buyers during the frenzy were being outpriced and they out-leveraged themselves extensively to snag a home. What happens now? Well, homeowners will now have to face the consequences of higher monthly mortgage payments with each rate increase.  Those of you who already have locked in mortgage rates still need to be concerned when your term comes up for renewal. What will the rates be like then? I recommend socking away the difference between what you're saving now in some type of savings account and then drawing on that money later when/if the rates go up.

Bank of Canada Governor Tim Maccklem states "While we've been clear with Canadians that they should expect a rising path for interest rates, seeing their interest rates and other borrowing costs increase can be worrying. "

I'm certainly glad he is aware of the level of anxiety this will cause Canadians. The psychological impacts alone will send people into panic mode, which will result in the locking in of their rates now or pulling the brakes on future purchases.

The days of low-interest rates which resulted in more money going towards principal are behind us for now. The Bank of Canada says,  "They have an inflation target, not an interest rate target." A neutral inflation rate which they estimate is between 2-3% 

How high interest rates go will depend on how the economy responds. If interest rates don't respond, we will see more increases to bring inflation under control. 

Truthfully, I can't see interest rates being raised so ostensibly high to fight inflation without taking into account what it's doing to the people.  If history has taught us anything, it is that the government always reverses course due to "tightening" happening too quickly. Do you really believe that they want to raise rates so high till it manufactures a recession and ultimately crashes the markets?

 | think not!

 It would be extremely reckless. I would like to believe ( maybe foolishly so) that our government is more responsible than that. The government traditionally likes to protect the markets, and will absolutely say what they need to about inflation percentages and the effect price increases have on consumers, and then Bingo-- all of a sudden- a reversal.  They'll find something to blame for reversing course. Another war, a new virus? Who knows?

Let's face it, the Bank of Canada really has no influence on the world market prices of anything. Choosing to raise rates to quell inflation will certainly make life more difficult for Canadians while the world continues to struggle with upward pressure on prices.

Time will tell though and, as we all know, change happens quickly - like a mighty rushing wind.

Will I be locking in? I'm a variable rate baby. I have a high risk tolerance and prefer riding that variable rate roller coaster.  I don't think I'll be getting off it anytime soon, but I will be paying close attention. The way I see it - based, on a calculation provided to me by a credible mortgage broker -  It's a $14 increase per 100k on a mortgage per 0.25%. I'm not ready to panic yet.

I would love to know what you think. Are you worried?

Thanks for reading ( please note that these are my own personal opinions. Any figures or insight  are not to be taken as legal or financial advice)

-Alexia 

The hardest working agent and your country home and Moving Up Expert!