Month 5: Property Management Basics

Surrey Real Estate Investment Club
REI with a Cause!
www.AspireRealEstate.ca
Our Sponsors

Where Are They ?
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Agenda
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7.00-7.15 Arrivals and networking
7.15-7.20 Introduction
7.20-7.55 Lomash – Property Management
7.55-8.15 Break and networking
8.15-8.45 Marc – Multi-family investing
8.45-8.50 Lomash – Wrap-up
Next Meeting: Wednesday 26th June at 7pm.
8.50-9.15 Networking

Surrey Real Estate Investment Club
REI with a Cause!

ANGRY BIRDS
not as fun in real life
REI with a Cause!

The Legal Stuff…
The information contained herein (the “Information”) is intended for
general informational purposes only and should not be relied upon by
recipients hereof. Although the Information is believed to be correct, its
accuracy, correctness or completeness cannot be guaranteed and has
not been verified by either Aspire Holdings or any of its affiliates.

Views expressed in this presentation are based on research materials
available from sources that Aspire Holdings (d.b.a. “Aspire Real Estate”)
considers reliable but neither guarantees, warrants nor assumes any
responsibility or liability of any kind with respect to the accuracy,
correctness, completeness, or suitability of, or decisions based upon or
in connection with, the Information.

All real estate opportunities come with varying degrees of risk and past
performance is not an indicator or guarantee of future results. Prices can
go up or down and current performance may be lower or higher than
any performance data quoted for comparisons.
REI with a Cause!

Past Meetings
REI with a Cause!
1. Strategy & Getting Started
2. The RE Cycle and Selecting An
Investment Area
3. Evaluating Investment
Properties
4. Funding Your Next Properties

Tonight’s Topics
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Property Management
Lomash Regmi
lomashregmi@gmail.com
Multi-Family Investing Fundamentals
Marc Ramsay
Majura Properties LLC

Little Bit About Me
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Early Childhood Landlording

Binary Overload
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Almost Missed This Jackpot
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Uh oh !
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Get Educated
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Real Estate Business
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Strategy
Management
Exit
Financing

Property Management Activities
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Property
Tenants
Money Paper

Components Of A House
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Doing Your Repair And Maintenance
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Pros:
●
Save money
●
Gain experience
●
Know your parts and procedures
Cons:
●Have to buy tools
●Spend time learning new skill
●May take longer to finish the job
●Repairs may look amateurish
●Is this the best use of your time?

Home Maintenance Checklist
REI with a Cause!

Average Lifespan
REI with a Cause!
Roof: 20-25 years
Heating system: 25 years
Refrigerator: 20 years
Freezer: 20 years
Clothes dryer: 18 years
Range/oven: 18 years
Room air conditioner: 15 years
Clothes washer: 13 years
Water heater: 13 years
Central air conditioner: 12 years
Dishwasher: 12 years

Tenant Profiles
REI with a Cause!
1. Students
2. Professionals / Roommates
3. Singles
4. Professional Couples
5. Corporate / Relocation
Employees
6. Family

The BC Human Rights Code
REI with a Cause!
Prohibits Discrimination on these 16 grounds:
1. race 2. colour 3. ancestry
4. Place of
origin
5. Political belief 6. religion
7. Marital status 8. Family status 9. sex
10. Mental
disability
11. Physical
disability
12. Sexual
orientation
13. age 14. Criminal or
summary
convictions
15. Lawful source
of income
16. retaliation
Code does not apply when looking for a roommate

How To Find Best Tenants
REI with a Cause!
●
Keep property in perfect condition
●
Research the market rents
●
Place enticing ads, with link to online form
●
First filtering: Is the form completely filled?
●
Invite your top picks to view unit during a 2
hour open house
●
Have them fill lease application
●
Do due diligence on each lease candidate
●
Choose the best application

What Information Can Be Collected?
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Id
Driver's license
Pay slip
T4
Employment letter
With consent: credit report, criminal
report, credit card number

Due Diligence
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Call references
Check social media: Facebook,
Twitter, Linked In, Google search
Verify employment history
Verify tenancy history
Use reporting services: credit report,
criminal report

Verify Employment History
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When did the employee start?
What is their position?
Are they full time or part time?
What is their current wage? (Check
against the application and pay stubs)
Is there any garnishment on wages?

Verify Tenancy History
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When did he/she rent from you?
How long did this person live in the rental?
Did he/she pay the rent on time?
Did they have any pets?
Were there any complaints from other Tenants?
Was there any damage?
Was the tenant respectful to you and the property?
Did the Tenant give you proper notice to end the
tenancy?
Would you rent to this Tenant again?

Credit And Rental History Reports
REI with a Cause!
Rental History Report
http://www.rentalhistoryreport.com
Credit Info Canada
http://creditinfocanada.ca
Rent Check
http://www.rentcheckcorp.com
Tenant Verification
http://www.tenantverification.com

Strategies To Keep Good Tenants
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Send tenant welcome letter, along with a copy
of rules and conditions for easy reference
Be professional in handling tenant issues
Make repairs promptly
Present appreciation letter / gift cards / gift
baskets
Offer utility rebate for on-time rent payments
Offer referral bonus for more good tenants
Increase rents according to market condition.
Up to a maximum percentage once a year, need 3
months advance notice

Problem Tenant Remedies
REI with a Cause!
10 day eviction notice for unpaid rent or utilities
1 month eviction notice required for
1. Persistently late rent payments
2. Too many people living in the unit
3. Substantial interference to others (including by
visitors or pet)
4. Illegal activity in the property
5. Wilful damage of property
6. Not done required repairs to damages
7. Sublet without landlord's consent

Contd... 1 Month Eviction Notice
REI with a Cause!
Breach of a material term of the lease
Knowingly gave false information to
prospective tenant or purchaser of the
property
Security or pet damage deposit was not paid
within 30 days as required by the tenancy
agreement
Landlord cannot unilaterally change locks or seize
or throw tenants' stuff out on the streets because
they complained or did not pay rent on time.

“No-Fault” Tenant Eviction
REI with a Cause!
Property to be used by caretaker, manager or
superintendent of the residential property
Landlord, spouse, in-laws, or children of landlord
or spouse to move into the property
Purchaser, spouse, in-laws, or children of
purchaser or spouse to move into the property
Permit acquired for demolition or extensive repairs
and renovations
Conversion to strata lots or not-for-profit co-op
housing
Conversion to non-residential use
2 months notice, 1 month rent refund to the tenant.

Money Management
REI with a Cause!
Be on top of your money - security
deposits, rent payments, repair and
maintenance budgets, mortgage, taxes,
utilities
Interest has to be paid on collected security
deposit. Currently at 0%
Get vacating tenant's new address to
refund the security deposit
Charge for any cleanups or damage repairs
and send an invoice if security deposit
could not cover the total expense

Paperwork Management
REI with a Cause!
Be on top of your paperwork - repairs,
expenses, receipts, invoices
Tax time: Paperwork for your bookkeeper,
accountant
Application forms, lease forms, warranties,
inspection logs, manual
Tenant communications: notices for rent
increase, late/unpaid rents, lease
termination, subleasing

Paperwork Management
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Electronic Receipts Management
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Paper Management
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Property Management Options
REI with a Cause!
Dedicated Property Manager
Leasing Services
HandymanGeneral Contractor
Various Trades
Complete Self-Management
Copywriters Marketing FirmAdvertising Agency
Professional Photographer
Legal Aid
Lawyer
Bookkeeper
Accountant

Property Management
REI with a Cause!
Self - Management
OR
Managing The Property
Manager

Hiring And Managing A Property Manager
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Agenda
REI with a Cause!
7.00-7.15 Arrivals and networking
7.15-7.20 General Introduction
7.20-7.55 Lomash – Property Management
7.55-8.15 Break and networking
8.15-8.45 Marc – Multi-family investing
8.45-8.50 Lomash – Wrap-up
Next Meeting: Wednesday 26th June at 7pm.
8.50-9.15 Networking

Feedback, Prizes and Action plan!
Questions or comments? Please let us know!
Next meeting Wed. June 26th @7pm
Summary: www.AspireRealEstate.ca/blog/
REI with a Cause!
• Find a new person in the group and tell
them what you are going to do in the next
month to achieve your goal!
• Follow up at next SREIC meeting.

Month 5: Property Management Basics

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Month 5: Property Management Basics