Does Your Property Manager Understand Your Needs?

When you own a rental property, it is important to have a property manager who understands your objectives and makes strategic choices to meet those needs. Broadly speaking, there are three major groups of people who own investment properties:

Owners by Circumstance

Life changes. As families grow and change, dispossession of real estate is not always in one’s best interest. It is common, especially in low markets, for people to move to a new home, but choose to rent out their property because the price of selling would not be worth their while. In other cases, work or life could take one to another part of the world for a number of years, and they may choose to rent their property out for the time being.

Whatever the circumstance may be, having a property manager that understands your circumstances is important. Because the rental is likely a shorter term move than if it were a strict investment property, making large capital improvements may not be ideal right away- assuming the property is rental ready

Additionally, putting a tenant into the property on a very long term lease (greater than a year) may not be in your best interest. In Alberta, on a fixed term lease, the tenant has rights until the end of the term. Unlike in other provinces, an owner cannot force a tenant out of a property in order to reoccupy their home prematurely. Having a manager who understands your timeline is imperative.

Owners by Inheritance

As difficult as a family member passing away can be, having to deal with assets and wills adds additional complications. Sometimes, families are left with real estate that needs to be managed. It can be anything from a single condo unit to a whole apartment building, but because family members may not want or be able to, hiring a property manager may be a wise decision.

“Your property manager should not be getting involved in family matters, but should be making life easier during difficult times.”

In these cases, your property manager should be adept enough to consult with decision makers to understand ownership objectives. Because these situations can be turbulent, ensuring that the property is well taken care of and any potential risks are mitigated are primary concerns for any owner. If it is an investment property, your property manager should ensure that money is paid to the right people, per the terms of the trust arrangement, and that decisions are made by those empowered to do so. Your property manager should not be getting involved in family matters, but should be making life easier during difficult times.

Owners by Choice

Owners who buy a property as an investment look primarily at two factors: What does the property rent for and what type of property appreciation will I see when I sell? A good property manager knows that keeping the property occupied is most important. Not only does it minimize costs to the owner, it minimizes risk as between the tenant’s insurance (which a good property manager ensures they have) and them being in the house to notice issues can often catch issues more quickly.

A diligent property manager also looks for ways to enhance the value of your investment property. Not only do they inspect your property to look for issues, they can also advise you on capital improvements that you can do to upgrade the property. And because they manage multiple properties, they may be able to get you a better price on these projects and work with trusted trades that will get the job done right the first time. Not only does this increase the value of your investment, it often increases the asking rent for your home, putting more money in your pockets.

Having a property manager who works for you also optimizing major costs to your property through strong preventative maintenance programs. From ensuring your roof is inspected to ensuring the tenant is maintaining your home properly, they work to ensure you do not have to make capital upgrades too often.

“Retaining tenants is a best practice in property management”

A good property manager will also employ strategies to ensure tenant retention. Keeping a tenant in your home for more than one year decreases your leasing costs, and is also less onerous on your house. If a tenant is in your home and generally comfortable living there, it saves you the cost of doing major upgrades. Additionally, moving furniture and boxes both out and in takes a toll particularly on your carpets and walls. Retaining tenants is a best practice in property management, and something your manager should have strategies for.

Signs Your Property Manager Is Working For you

Every owner has different needs. Your needs may be different from the needs of an owner who has a similar ownership structure. Regardless, your property manager should be aware of your objectives, and work towards achieving them. Starting from an initial consultation with a manager who asks about your objectives, right until the day that you choose to sell the property, it is important that they are on the same page as you.

If you are looking for a manager who will work with you to meet your management objectives, do not hesitate to contact us directly.

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HOW DOES A LANDLORD MAKE A PROPERTY “RENTAL READY” ?

rental ready, Amhurst Property Management, Calgary Property

When you have a tenant that moves out of your rental property, it is imperative that the property is made ready to be re-rented. Landlords often think a property will rent as it is but this is not the case in general markets and certainly not the case in soft markets.

Here are five ways to make your property rental ready:

  1. Clear the house of unwanted items, from both inside and outside the unit. Remember, a clean curb appeal is important when you are trying to rent a house. Thorough cleaning of the unit is vital. This includes walls, floors, light fixtures, doors, frames, baseboards, walls and trim. Give special attention to bathrooms and kitchens, which are the main selling feature in any home.

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  1. Freshen the paint if required. Painting is an area owners often leave unattended, but it is a very important deciding factor for tenants. If the walls look tired, blemished, and marked, the tenant will go elsewhere. Refreshing the walls (and trim if required) can make the difference between renting the place and having it vacant. Coloured walls are typically less appealing than neutral colours. Most tenants tend to prefer neutral colours such as taupes, creams, and greys.

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  1. Attention to detail in such items as light fixtures, plug and switch plates, door knobs, and other details is imperative. If prospective tenants come to see your rental property and notice that it is missing items such as curtain rods, blinds or other items, they may pass judgment on your standard of care as a landlord. This will detract them from renting your home. Little things like a rusted shower curtain rod, a dowdy looking drape, a plug outlet with a broken cover, a stained toilet or toilet seat, can make the difference between them renting your property and going elsewhere. Think seriously about these matters as renting a house is an emotional exercise; the little things turn people away.

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  1. In cold weather, do NOT turn the temperature down in your vacant suite, just to save on heating bills. A cold house has a negative impact on potential tenants, as it does not have the homey feel. Keep the temperature aboveĀ  18 degrees, so as to ensure the property feels inviting.

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  1. Finally, if something appears like it needs a renovation or replacement, such as dowdy counter tops, or cabinets or blinds, just DO IT! Tenants do not want to live in a place that feels older or poorly taken care of. It is worth putting in the time and money to keep your rental property up to date so as to maintain a steady cash flow. Sometimes, your delay in this area can leave you with a vacancy for longer than you know.

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Amhurst specializes in making your rental property rental ready! Do not hesitate to contact us for more information.

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