Roger Townsend - Blog

Why a monthly apartment lease is a better bet

roger.townsend@century21.ca — Thu, 24 May 2012 00:00:00 GMT

By Mark Weisleder

Renting your first apartment can be an exciting time. It used to be automatic that you would sign a one-year lease, but it may be better for landlords and tenants to consider monthly leases instead.

Traditionally, landlords wanted tenants to sign a one-year lease as a sign of a commitment, so the tenant would not be tempted to break the lease early. It gave the landlord a sense of comfort. Tenants also appreciated this sense of security — they could not be evicted as long as they paid the rent on time and behaved themselves.

Times have changed. When you consider how the law operates, both landlords and tenants may reconsider.

For landlords, it is far more important to properly qualify your tenant. If your tenant subsequently defaults or breaks the lease early, you won’t collect anything anyway. In addition, a landlord has a legal obligation to try and reduce their damages by re-renting their unit, so it is unlikely you will be able to sue the tenant for anything more than the months the unit remained empty.

If it is a monthly tenancy, landlords also have the advantage of terminating the tenancy at any time — upon 60 days’ notice — if they want to move into the unit themselves or have a family member move in.

For tenants, unless it is a house or condominium, you should also consider monthly tenancies. In a larger apartment building, it is unlikely a landlord will be able to terminate your lease for family reasons. Therefore, as long as you pay your rent on time and behave yourself, you can stay as long as you want. In addition, if you ever want to leave, whether to buy your first home or move to another apartment, you will only have to give the landlord 60 days’ notice.

However, if you are renting a house or condominium, you may want the security of a one-year lease, as there is a real possibility the landlord may try to evict you if they want the property for their own use.

Other tips for first-time tenants:

• The landlord can only ask for the last month’s rent in advance; no other security or furniture deposits.

• The landlord can ask for post-dated cheques, but cannot demand them.

• You can find out all of your rights as a tenant at the Landlord and Tenant Board website at www.ltb.gov.on.ca.

One-year leases used to be the standard for residential landlords and tenants. It may not be the right option for you. Understand your rights before you sign any residential lease and you will benefit in the long term.

How to avoid renting to a tenant from hell

roger.townsend@century21.ca — Tue, 22 May 2012 00:00:00 GMT

By Mark Weisleder

A recent Toronto Star story exposed a problem tenant who was successful in abusing the Ontario landlord and tenant process to avoid paying rent. It can take landlords up to nine months to evict these types of ‘professional’ tenants.

However, it would be wrong to paint all tenants with the same brush. Over 95 per cent of Ontario tenants pay their rent on time and take care of their rental units. For every problem tenant, there are also problem landlords who do not properly maintain their buildings.

Here is how landlords and tenants can avoid problems:

Qualify your tenant in advance

When you advertise for a tenant, make it clear that you will be doing a credit check and checking personal references. This will assist in discouraging potential scammers.

Ask for a pay stub or banking information. Make sure that the proposed tenant makes regular deposits into their bank account, to prove steady employment.

Call references to make sure they check out

Google the tenant’s name to see if their social media information is the same as that on your rental application

Make sure the address on their driver’s license matches where they say they live now.

Join a service such as tenantverification.com to check a tenant’s credit

Have the tenant pay for utilities, if separately metered. They will have to pass the credit check of the utility company as well.

Treat tenants with respect

Successful investors understand that tenants are your silent partners. They are a source of income and are looking after your investment. When you treat them with respect, and show appreciation, they will also take better care of your building.

Something as simple as a gift card can go a long way. When the tenants leave, if they have been a model tenant, why not award them with a certificate of superior tenancy, to show your appreciation. This might help them find another unit, especially if they have other credit problems.

If things go wrong, it is better to make a deal

Sometimes bad things happen. A tenant loses their job and even though they would like to pay the rent, they can’t. Instead of rushing to the landlord and tenant board, which takes time and results in hard feelings, try to work it out.
Perhaps offer to help the tenant move back with relatives and forgive part or all of the back rent owed, in exchange for the tenant leaving early. Let the tenant know that if they agree, you will also not notify the credit bureau about this and ruin their credit rating.

The landlord can then write off the amount owing and find another tenant to take over the unit. Also, when a deal is made, the tenant is likely not to damage the unit when they leave, which is what usually happens when things end badly.

Tenants, also show appreciation to those landlords who do properly look after your buildings. Don’t change the locks without permission, or permit visitors to damage anything on the property.

When landlords and tenants work together, everyone wins.

Q & A's

roger.townsend@century21.ca — Thu, 10 May 2012 00:00:00 GMT

Why pay more?

Q: What are the benefits of paying more than a 5% down payment?

Answer

There are many benefits to putting more than 5% down. The larger the down payment, the lower the cost of your overall mortgage in the long run and you will save money by paying less interest. If you can put as much as 20% down, you will avoid paying mortgage insurance. Mortgage insurance is mandatory if you put less than 20% down, and can add thousands of dollars to the cost of your home.

Is it mould?

Q: What are the signs of a mould problem in a house?

Answer

When you are looking to purchase a home, you want to make sure there are no signs of mould. Mould is a major red flag because it could mean there are serious problems with the foundation and drainage systems of the house. Signs of mould include discolouration (mould can be any colour – black, red, or green) and a musty odour. If you suspect discolouration is mould, you can easily test it by dropping some bleach on the affected area. If the discolouration disappears, it is likely mould. Since problems with mould can be persistent, you should be cautious of purchasing a home with mould problems.

Do Basements Count?

Q: Does a basement count in the square footage of a house?

Answer

No. Only the space that is above ground is included in the square footage of a house. Even if you have an extra 1000 square feet of living space because you have a finished basement, this is not included in the measurement of the size of your house. In addition, attics are generally not counted either in the square footage of a home (an attic is considered “unlivable” space). So don’t be deceived when looking at listings! Just because you see a house listed at 1500 square feet – if it has a finished basement, you can increase your livable space.

Curb Appeal

Q: How do I add curb appeal to my home?

Answer
First of all, this is a great question! How you present your home from the outside will not only attract buyers, but also provide them with that first and lasting impression. My first suggestion would be to stand in front of your house, see what the most tired looking feature is and upgrade that. Remember, what you notice is what the buyer will notice! This may mean touching up small things such as chipped paint and unsealed windows, right down to paving your cracked and lumpy driveway. If it looks like you have taken care of the outside, the buyer will trust you have taken care of the inside. Now, in addition to the general upkeep, adding an element of privacy to the front of your home is also a great way to add curb appeal. Some of the nicest homes you will see peek discretely from behind beautiful mature trees, shrubs or fencing with an inviting walkway which leads to the entrance. This gives an overall cozy and intimate feeling to any property.

The List

roger.townsend@century21.ca — Wed, 25 Apr 2012 00:00:00 GMT

Owning your first home is a great feeling and it may one of the biggest purchases you’ll ever make. So the more time you spend preparing, the easier your decision will be when you decide to find your next home.

The home buying process can be intense & stressful but it also can be very exciting. So before you start looking for your dream home, it is a good idea to have a clear picture of the type of home you want.

The best way to figure out exactly what you want is to make a list. It is good to have a picture in your mind and as you go further into the process, you'll find it helpful to have a list you can refer to especially when the "files" in your mind start getting overloaded.

Of course, once you start looking at homes, your list can change.

you'll see things you never thought of
the things you thought were important may not be any more
and things you thought you could not afford, but you can.

So don't be afraid to make changes.

When writing your list, think of all the qualities you want in a home, in a neighborhood, and in a city. Include everything you think is important. While this won't guarantee that you will get everything you want, it will help you be able to prioritize what you think is most important.

City where you WANT to live, which ones would you live in if you had to, and which ones you would NOT live in no matter what!
Area of city
School system
Type of neighborhood (With kids, without kids, close to highway or main road, out in the country, etc)
Type of home (Condo, Townhouse, Detached etc)
Size of home (Square footage, number of bedrooms, number of bathrooms, etc.)
Layout of house
Yard (Landscaped nicely so you don't have to do any work getting it in good shape, not as nicely landscaped so you might get a better deal but need to put in more work, etc.)
Price (Are you willing to pay less for an older house or one that needs more work?)
Anything else that is important to you

If you're not sure what to put on your list, take a walk through the house or apartment you are living in now. Take a walk through the neighborhood. Visit a friend or neighbor. If you still need help call me anytime. The more information you have, the better!

So, do yourself a favour and find a quiet place, take a few moments to write out your list, put it in order of importance, and save yourself a bunch of stress!