Real Estate Insider: January 2020 News Report

A sign of a good economy is cranes in the sky! There were more permits for new construction in 2019 than ever before in Windsor-Essex! Read here some of the biggest developments happening in Windsor and the most popular permits granted across the city!

A large reason for the recent Windsor- Essex real estate boom is the vast number of people moving to town! But who is it that’s moving in? From immigration to youth from other Ontario cities, see which group is moving in the largest numbers and why!

Being a Landlord is becoming more and more difficult in Ontario, especially if you rented to a bad Tenant (and now you’re stuck with them). According to this article, it is mostly due to the incompetence and abuse of power the Landlord Tenant Board is showing in favour of Tenants. Read this article about this Landlords bad experience and let us know if you’ve had your own bad experience with the LTB! 

With a large percentage of the population set to retire in the coming years, there will be a lot more people looking to supplement their retirement income with investments, but should these retirees be borrowing to invest? The answer is most likely no, but everyones situation is different! Take Garrey for example, he’s wondering if borrowing to cover his rental property expenses is a good long term strategy in retirement. If you have similar questions, this article is a great starting point!

Do you know your credit score? If you’re going to be applying for a mortgage in the near future, the more you know the better! Read here to learn more about where to find your credit score, how it is calculated, tips on improving it, and more!

The Average single family home size is declining, this is a positive sign for Real Estate investors due to the cyclical tendencies of the market. Learn more about why the reduction in size could mean big bucks for real estate investors in the coming years.

Ever wonder what would happen if your real estate deal doesn’t close on time? It can get pretty messy if the Buyer or Seller is late delivering documents! Read here what would happen if bad weather or traffic were to hold up the closing of your dream home. 

Here’s 5 tips to keep the temperature up and heating bill down all winter long! What we like to call a “Win Win!”.

Read here why EVERYONE should have a will, and keep it updated!

Real Estate Insider: December 2019 News Report

Take a page out of Russel’s book if you are considering a recreational investment property, and look to the south! (Or if your’e in Windsor, North!) This article explains the advantages of investing in the US for Canadian Millennials.

Is your rental property a part of your short term or long-term financial strategy? This will determine how you should allocate the costs of the improvements you will most likely have to make. Read here if you are wondering whether to write it off of your income this year, or take it off of your capital gains when you go to sell!

Cashing out on your home and renting in retirement might seem like the right choice, but there are many other things to consider before making the jump from owner to renter. What kind of return could you get if you invest the money? What kind of retirement do you want to have? These questions and more are considered in this article for soon-to-be retirees!

CRA is really cracking down on Real Estate transactions. Make sure you consult a professional when Buying or Selling Real Estate so you don’t get caught paying hundreds, if not thousands, in fines! Read more about Real Estate tax mistakes a lot of Canadians are making here.

Is Real Estate still a good investment in Canada? The simple answer: As long as you do it right! Read here this real estate investors tips on doing it right and the risks to look out for!

Have you had an experience with the Tarion warranty? This article claims that Tarion seems to favour the Builder and not the Homebuyer. This needs to be fixed as soon as possible! We want to hear your experience dealing with Tarion!

Water is something you use everyday without question, so the next time you’re thinking about doing a renovation, keep your water bill in mind! An undetected leak or failed system can cost you thousands per year in wasted water. Read this article on how to reduce your water bill and save some coin while doing it!

The mortgage stress test is to ensure people are still able to afford their home if interest rates were to increase. This sounds like a good idea for most, but not for retirees! Read here how the stress test is making it tough to borrow later in life.

Do you know the assessed value of your home for tax purposes? More times than not it is much lower than the market value of your home. MPAC announced that they will be doing new property assessments on some properties in Ontario! Do you fall in the category for a potential new assessment? Find out here.

This video explains 5 things to know about the changes to Real Estate Agent laws in Ontario.

Real Estate Insider: November 2019 News Report

Four step process for Landlords when establishing the relationship with your Tenant. A must read for all new landlords. Read about it here.

What would you do if your friends wanted to do something illegal with a rental property that you're a partner in? That's the issue this man had when his friends didn't want to claim their portion of capital gains. What type of risk is he exposed to? Read here and always be careful who you go into business with!

When interest rates dropped, amortization periods were also lowered to even things out. We are at a time now when interest rates are set to rise again, however no one really knows when. This article discusses the potential increase in amortization periods to offset the predicted rise in interest rates. Read all about it here!

Mortgage 101: A guide for the first time homebuyer.

Which is better for your mortgage, a longer or shorter amortization period? Well that depends on your income, downpayment, risk aversion and more! Read this to help you decide which path to take when deciding on the terms of your mortgage.

The student-housing crisis also correlates to a big opportunity for real estate investors, but what makes a great student rental? REIN has released a student housing formula to help you make an informed decision when choosing student rentals.

Everything you need to know about Mortgage Brokers and why going to your bank for a mortgage may not be the best option.

The classic Buy vs. Rent debate continues! But this time it's about... Hot Water Tanks? You may never have thought twice about your hot water tank, but maybe now it's time to take a second look! Read about it here.

If you own a property in the states (especially Florida), this article can explain the process of handing this property down to your kids/loved ones! Also how to avoid probate and other unnecessary expenses!

Landlords - Reasons For Ending a Residential Tenancy Early in Ontario

In dealing with our investor/landlord clients, we often come across situations where a residential tenancy agreement needs to be terminated early.  Because this can be a technical process sometimes the rules are misunderstood.  Today we are going to cover the legal reasons for ending a residential tenancy agreement early so you don’t get yourself in trouble.

Reasons for Ending a Tenancy Early

1.   The landlord and tenant mutually agree to end the tenancy early.  This can be for whatever reason.  Form N11 should be used for this process.

2.   Ending an agreement for “cause”.  Some examples include:

I).   Not paying the rent in full

II).   Causing damage to the rental property

III).   Disturbing other tenants or the landlord

IV).   Illegal activity in the unit or complex

3.  There are also other reasons for ending a tenancy that are not related to what the tenant has done, or not done.  These are sometimes called "no fault" reasons for ending a tenancy and can include:

I).   The landlord plans to do major repairs or renovations that require a building permit and the work cannot be done unless the rental unit is empty.

II).   The landlord requires the rental unit because the landlord, a member of the landlord’s immediate family or their caregiver wish to move into the unit.

III).   The landlord has agreed to sell the property and the purchaser requires all or part of the property because the purchaser, a member of the purchaser’s immediate family or their caregiver wish to move into the unit.  (This reason for eviction only applies in rental buildings with three or fewer units and in condominiums.)

4.  There is a long list of other technical reasons.  They can be read here Ontario Landlord & Tenant board website:

http://www.sjto.gov.on.ca/documents/ltb/Brochures/How%20a%20Landlord%20Can%20End%20a%20Tenancy%20(EN).pdf

Now that you know some of the reasons a residential tenancy agreement can be terminated early in Ontario, you can protect yourself.  Next time we will be discuss the forms, notices, time periods, etc you need to know to follow through on this process.

Readers, have you ever had to end a tenancy agreement early?  How did it go?

Real Estate Insider: October 2019 News Report

Ever wonder how the annual rent increase on residential properties is calculated? Is it really a fair percentage for Landlords? This article will give you all the information to decide for yourself!

Short term rentals and AirBnB, when are guests considered Tenants? How hard is it to evict? What you need to know heading into 2020! >>

If you’re buying an investment property strictly for short term rentals, be prepared for trouble when you go to get a mortgage! Why, you ask? This article explains how mortgage lenders are hesitant to loan money when the owner isn’t the one living there! Read more and how to get around it here!

Most condo’s or apartments have bylaws against short-term rentals, but that’s only if you get caught! Read here how the current enforcement is ineffective, and how new rules could pass that would change the short-term rental market drastically! 

With the rapid increase of retiree’s from the baby boomer generation, and the last of the millennials entering the work force, retirement strategies are a hot topic! Millennials need to start thinking and planning for retirement as soon as yesterday, but with defined pensions reducing in popularity, is real estate a good alternative? This article says maybe not! Read more here.

To move…or to renovate…THAT is the question! Real estate prices have risen drastically in the last few years, but so have construction costs! Is adding an addition more beneficial than moving to a bigger home? There are many factors to consider, and this article will help!

A lot can happen when selling your home, including accidental damages left by potential Buyers! Who is responsible for fixing these damages? The answer might surprise you! Read more here.

How divorcing your spouse can affect your mortgage, and how the new mortgage rules are making it difficult for divorcees to find a new home. >>

Here are 6 things that could be hurting your credit score that you might not even know about! Read here to stay informed and keep that credit score up!

Real Estate Insider: September 2019 News Report

Not a surprise that Windsor-Essex is a Seller’s market, but statistics show that it’s balancing out! Check out how it compares to the rest of Canada, and also see the best places in Canada to buy a house! >>

If you’re lucky enough to own a cottage, hopefully when you’re not enjoying the simpler things in life, you’re making some money off of it! Here are 11 tax-deductible expenses you may have missed to bring up that bottom line! >>

You’ve heard the saying “Don’t put all your eggs in one basket”, but does that apply to bank accounts? Read here for tips on where to keep your money to make sure it’s protected! >>

Minneapolis just changed the affordable housing market game! Allowing multi-residential properties to be built anywhere in the city. Do you think this would solve Windsor’s problem? Read more here!

If you’re thinking about buying a home this is worth the read! Step-by-step process on everything from improving your credit score, getting a mortgage pre-approval, and costs associated with owning a home! >>

Short-term rentals and airbnb, advice from a lawyer on what you need to know! >>

Just because a document comes from a large professional company (like a bank), doesn’t mean it’s perfect! Things like mortgage documents must be read carefully, and this article will give you the major points to go over to make sure you understand what you’re reading! >>

Is Canada’s real estate market due for a correction? According to these ratios, the answer is yes! Read here how Canada ranks world wide for risk of a Housing Bubble.

You can do pretty much everything online; it’s time to add, “Mortgage shopping” to that list! Read here tips on finding the best mortgage rates online.

Contrary to popular belief, Tenants can’t end a lease early for no reason. This may be one area where the Landlord is more protected than the Tenant! Make sure you know your rights as a Landlord and also as a Tenant! Read here on proper notice and correct steps to ending a lease early. >>

Raising the Rent In Ontario - Everything You Need to Know

This one is for all you landlords or aspiring landlords out there.  Raising the rent on a residential tenancy in Ontario is a pretty technical process compared to many other jurisdictions.  Today we will touch on what, when, how and why so you don’t make any costly mistakes along the way.

How Much Am I Allowed to Raise the Rent?

In Ontario in 2019 you are allowed to raise the rent 1.8%.  In 2020 the rate will be 2.2%.

Where does this rate come from?

The rent increase guideline is based on the Ontario Consumer Price Index (CPI), which is calculated monthly by Statistics Canada.  The 2019 guideline is calculated by averaging the percentage increase in the Ontario Consumer Price Index during the 12 months from June 2017 to May 2018.  By law, the rent increase guideline cannot be more than 2.5 per cent, even if the CPI increase is higher.

How Often am I allowed to raise the rent?

In most cases, the rent for a unit can be increased 12 months after a tenant first moved in or 12 months since the tenant's last rent increase.

How Much Notice Do I Need to Give a Tenant Regarding the Increase? Hey 

A tenant must be served a notice of a rent increase with a Landlord and Tenant Board approved form at least 90 days before the rent increase is to take effect.

Is There A Special Form I Must Use For Notice?

You must use a form called an N1: Notice of Rent Increase.  You can find the form at this link:

http://www.sjto.gov.on.ca/ltb/forms/

The allowed increase rate is so small.  Why should I even bother?

Your expenses are increasing usually in line with the inflation (CPI) rate, so if you aren’t increasing the rent, on a real return basis your rents will be decreasing.  Also if you don’t or delay, you’ll missing out on some valuable compounding of your rent increases.  This is especially important in multiunit buildings where if you are not doing these increases, the cash flow of the building will be going down and therefore the value of the building too based on that cash flow.

Are there exceptions to these rules?

Yes there are exceptions for certain situations where the landlord can apply to the Landlord Tenant Board to increase the rent more due to higher costs or capital expenditures.  There are also some types of rental units that are exempt from these increase guidelines.  You can read more about this on the Ontario landlord tenant board website - http://www.sjto.gov.on.ca/ltb/.

Increasing the rent is an important topic and this guide should help you avoid any issues.  If you ever have any questions regarding residential tenancies don’t hesitate to reach out to us.