New Rules For Buying a Property in London Ontario With Tenants

If you have a client who is interested in buying a property, but it has a tenant, make sure to extend the closing date because the required notice days in Ontario have now doubled in length. In the past, only 30 days written notice was required to terminate a tenancy. Now it’s 60.

Landlord in London Onatrio

Another glitch: the date the tenancy ends must coincide with the end of term or rent period. This could result in a full year passing before your client can move in.

For example, if the tenant’s lease ends Dec. 1, 2018, your buyer can’t move until Dec. 1, 2018 even if the closing date is Nov. 1, 2017. And if you’re thinking of “fudging the dates” by giving less notice than is required, don’t! If the termination date is so much as a day off, the notice is invalid, and you’ll have to start all over again.

Previously, landlords have not been required to compensate the tenant if the landlord gave proper notice and acted in good faith. That’s no longer so. Section 48.1 of the RTA requires that the landlord compensate the tenant equal to one month’s rent. This amount has to be paid prior to the termination date specified on the N12 notice. This means a tenant can take the money and still refuse to leave!

Some real estate salespeople have encouraged investor buyers to buy a place and evict a tenant under the pretense that the buyer, or her family member, is moving in. Under the new rules, if the buyer gets caught, she can be fined up to $25,000. This fine can also be levied if the buyer decides to move out before 12 months are up following the date of eviction, rent it to her cousin and charge rent or demolish the place.

Given these rules, it’s important that you get a copy of the tenant’s lease. This way, you can gauge when your buyer can move in and how much she’ll have to pay the tenant to move out.  It’s also important that you always use the updated forms found on the Landlord and Tenant Board’s website, because the previous forms are no longer valid.

To avoid extortion by the tenant – a practice whereby tenants demand money in order to move – make sure that your buyer, once she becomes the landlord, files an L2 application and obtains an order terminating the tenancy pursuant to the notice prior to the termination date. Ensure that the order references the payment so that it is documented that you will be providing the tenant with proper compensation. Getting an order in place speeds up the process if the tenant refuses to move following the notice date and prevents the tenant from extorting the landlord by demanding more and more money in order to move out.

While affordability is an issue and the housing reforms attempted to solve this matter, the reforms have disproportionately hurt landlords and those who are scrimping and saving to buy a home. As such, buyer agents, as well as seller agents, must be aware of these financial and practical changes. They can destroy a deal.

The above was written by   Natalka Falcomer  a lawyer in the GTA area

 Another interesting tip about investing in London Ontario

Want To Sell Your Income Property In London Ontario?

Thinking of Selling a Multi-Family Residential Property in London Ontario & Area?

 Over the past few months there has been a shortage of good quality duplexes, triplexes, four-plexes and 6-12 unit properties in London and area.

All the ones I had were sold or are conditional  from 27 units and down and I have 7 registered buyers, (pre-approved for financing and experienced) that are looking to buy, actually more than looking, real serious, no nonsense types who can make a decision within 24 hours.

Do you want to take advantage of my seven or of the Realtors from the GTA area begging me to find their buyers a property?

Now, do not get me wrong, my investors are not wishy washy or unwashed, they want to see value or be able to create value and they are long term investors so they are not interested in drastically overpriced properties, junk or cap rates below 6%.

Stress Test for Mortgages

Come 2018, the stress test for mortgages comes into effect and I am hearing from mortgage providers that there be fewer buyers that will be able to pull the trigger on a purchase.

That is good news for my buyers, the stress test has little effect on them and will actually be better for them, less buyers, less competition.

So, if you have a property you want sold without a song and dance process, contact me, I don’t sing and the only time I dance may be if there is amber liquid around and that is very unlikely as well.

Ontario Landlords Can Increase Rents 1.8% in 2018

1.8% Rent Increase Allowed for Ontario Landlords in 2018

Ontario Landlords

Ontario Minister of Housing Chris Ballard announced that the 2018 provincial rent increase guideline has been set at 1.8%, up .3% over the current year.
The annual rate of increase is based on the Ontario Consumer Price Index, a measure of inflation that reflects current economic conditions affecting the
cost-of-living.
As in previous years, this amount is the maximum that a tenant’s rent can be raised without approval from the provincial Landlord and Tenant Board, and applies to all new rent increases made between January 1 and December 31, 2018; it is also retroactively effective as of April 20, 2017.
Unlike previous years, however, the ministry’s annual rent control guidelines have now been expanded to include all private rental units, including those built as tenant-occupied premises on or before November 1, 1991.
This anticipated change results from the recently-passed Rental Fairness Act, 2017 that was introduced to protect an estimated 250,000 Ontario renters living in pre-1991 units from unreasonable and/or unpredictable rent hikes.
Ballard, who is also the minister responsible for Ontario’s Poverty Reduction Strategy, said the aim of the expanded 2018 rent increase guidelines is to make the housing market fairer for all, “ensuring that everyone in Ontario has the peace of mind they need…”

 

Please visit
to read the entire Government of Ontario announcement.

Income Property For Sale in Downtown London Ontariuo

Photo Link
London Ontario Income Property

•  multiplex – FOR SALE  1279000 CAD . Income Property
MLS® 605286

A very solid 12-plex in good condition. All 11-2 bedrooms renovated within the last 3 years including new kitchens, fridges & stoves. Bathrooms have new tub surround, fixtures and vanity.

New vinyl flooring throughout. Building has new windows (all but 2).

Bachelor unit not in use.

Separate meters, security cameras & controlled entry .

Tenants pay own hydro, separate meters, Coin-op laundry (owned).

Ample parking and on direct bus route.

Some Numbers: $120,900 income based on 3 units at $825 and 8 units at $950.00 plus utilities
For the last 12 months, $3763 Heating, $3695 insurance, $6,380 water and hydro, taxes $23,864 = $37,702

Property information

Income Properties London Ontario

Just so you know, if you can’t find London Ontario income properties that you want, have you considered other alternatives in finding the right one for you?

Remember, you may NOT be seeing all properties for sale with the email notifications from the other various search websites you may be  registered with. For example:

  •  Houses with granny suites will not be shown
  • Great condominiums such as townhouses or apartments you can make some money on.

 I have access to properties for sale that are not listed for sale on MLS (Property owners have asked us to help them sell, but there’s few days lag time before they are searchable on MLS or they are doing a few bits of tidying up)

 Note:

I do not just sit around and wait for properties to become available for sale, I’m a hunter.

Here is another way to see income properties as well.

 

Frustrated Buying London Ontario Properties?

Are you spending countless hours searching the MLS, real estate magazines, weekend classified ads and real estate websites looking for the ideal home for a great price and in a great neighbourhood in London Ontario?

looking to buy a house in London Ontario

 

If you enjoy doing that, great. Are you aware you may be missing out on some great homes that sell in a day or two or a home that was priced quite so agressively that it sells as soon as it comes on the market or on a specific street?

Do you think you will get a head jump on others by searching daily or weekly? Avoid paying commissions? Avoid a pesky or bothersome real estate person (don’t blame you)?

Or, perhaps you are curious or you are in the ‘just thinking stage’ of real estate. Perhaps to purchase or sell.

Regardless, real estate changes, people change, neighbourhoods change, real estate markets change and the motivation of buyers and sellers change.

So how do I, as a real estate professional, as a Broker of Record and Owner keep you, the curious, the maybe, the must have by the end of the month, the retiree, the downsizer, the upsizer, the DINK’s (double incomes,no kids), the tire kicker, deal maker, bread winner or just plain ready to move informed about real estate in London Ontario?

My asociates and I view a lot of houses and condos every week. We do loads of searches daily for clients, we are constantly researching properties, even For Sale By Owners.

we  find houses in London Ontario

My tastes are different than yours, my taste in neighbourhoods, price affordability, style of home, school district, what side of the tracks, how close certain amenities are and I bet, hundreds more.

As professional house hunters in London we know the jungle, the alleys, the streets, avenues, crescents  and can guide you on the right path to ensure your purchase is wise & financially sensible.

Love it or Leave It” London Ontario’s Only Home Buying Guarantee

100% Home Buyer Guarantee

If you obtain a home through Sutton Group Envelope Real Estate Brokerage and you are not 100% pleased with it, we will sell your home for you for FREE! We offer this guarantee within the first 24 months after you purchase the home.

Why? 

We want you to be totally satisfied with your home and will do everything to get you into a home that you will love…Guaranteed!

We are confident that we have the ability to listen to you and to being dedicated in finding the “Perfect Home” for you.  We take 100% responsibility; we offer no excuses and no finger pointing.

That’s why we are willing to work for FREE if your home isn’t everything you expected it to be.  You have nothing to lose,

There is some fine print and here it is:

This home buying guarantee excludes commercial properties, investors & students.

You won’t have to jump off any cliffs, scale any mountains, wrestle a crocodile, put up with a pushy real estate salesperson, cross-eyed lawyers, impotent mortgage lenders, near sighted home inspectors, all you have to do is put up with me!

Ty Lacroix

 

Fixer Uppers in London Ontario

I get calls or emails everyday about fixer uppers in London Ontario. It is usually after someone has watched reality shows on TV or read a get rich quick book with no money down or a book about how easy it is.

Really?

What if you bought a fixer upper to live in for a few years and then repeat the process?

What about a couple who are handy or even want to be handy and who do not have to keep up with the Jones’s for appearance sake? Instead of buying that $200,000 or $300,000 home with the finished basement, nice schools, close to work, 2 car garage and then busting your butt to ensure all your monthly bills are paid? And, hoping that your home will increase in value in 5-10 years.

Fixer uppers in London Ontario

What about the couple who buy a small home outside the city for cash or 5-10% down, are prepared to drive a bit to get to work and have a 1-2 year plan to fix the place up and sell it and repeat this 4-5 times in 10 years?

Look at the math. Instead of a $1000 plus going to interest every month, you buy something where that interest goes perhaps $600-$800 goes to fixing your place up. after 1-2 years you sell it, you may earn $10,000 plus but lets say you only net $15,000? That’s low but stay with me here.

You do that 5 times or more? If you compared the couple who has had only one house after 10 years, mortgage poor or to keep up with their friends, go deeper in debt and get a bigger home, or the couple who uses their sweat equity and common sense after 10 years?

I have 14 couples now who followed this plan and let me give you 3 scenarios:

  1. Couple number 1 lives in a $260,000 home, no mortgage and are under 35 years old and have no debt
  2. Couple number 2 live in a condo now, no mortgage and are living off the rental income of their last 7 homes they bought, and instead of selling, they rent out
  3. Couple number 3 are into house 3, it’s worth about $275,000, they owe just under $100,000 on it and their first home they bought, they scraped, borrowed and begged to come up with a $5, 281 down payment!

Are the above 3 different than most? Yes. you see, they are willing to pay the price in time, effort and ego to build their financial stability. Now, at the end of the day, 10 years from now, who is living the good life?

smart home owners London Ontario

Is it easy? Safe? Nope! Is it wise and financially prudent? You bet! So I ask, do you have what it takes or are you going to go through the rest of your life in debt and looking well off or no debt and feeling well?

Turn One London Ontario Rental Property Into a Retirement Fund

 How to Turn One London Ontario  Rental Property Into a 7 Figure Retirement Fund
In my various meetings with different families, I hear many express concern over their retirements. Many are worried that they won’t have enough saved to retire.

This is pretty scary considering how many years we work throughout our career.

London Ontario Rental Property

To help with this challenge, I just finished a new report detailing how you can turn just one rental property into a 7 figure retirement fund.

You can download this new PDF report here:

In this report, you’ll learn how to:

  • How to get someone else to save an extra $412 a month for your retirement!
  • How to setup a compounding money machine designed to accelerate your wealth!
  • How to have an extra million for your retirement!

Needless to say, this IS a powerful report and is definitely worth studying. You can access it now on my site here:

Be sure to study what happens if you follow this plan for 25 to 35  years! You’ll be able to leave a fortune to your family!

To truly change your life, you need an asset that throws off regular, monthly cash. That might mean something like a real estate property paid off in cash.

   If you are renting out a $225,000 property that you own in cash, you could very reasonably have $1,400 coming in per month that you get to use to make stock market investments. Do this for a couple decades, and you are going to benefit from rising rent cheques that give you even more money to invest, and then the investments from years gone by start to throw off meaningful income all of their own, allowing you to spend your life constantly taking incoming cash and making fresh investments.

  At that point, investing is an art form. It’s a lifestyle.

  You’re not playing the lame game of trying to beat the S&P 500 by a point here or a point there each year, but instead, you are laying the bricks of a financial fortress each month as you create a perpetual income machine that lets you build a collection of assets that keep on generating cash.

Time & London Ontario Income Properties

Successful real estate investors in London Ontario and area understand time as a trusted ally and use time to build wealth and as a yard stick for their decisions.

Invest today and use Time as your friend

Every week I get calls and emails from wannabe investors whose main criteria when asking me about properties in London Ontario is how much is the rent collected and comment that they want or need more than that. Makes sense when you think about it and if that was the main criteria for buying properties, you can now understand why some struggle and give up.

Compounding and time work for the wise real estate investor. They understand that positive cash flow, even if it’s a few hundred dollars on a duplex or triplex over time, adds up. They understand that monthly their tenant is paying down the principle on their mortgage and there is even the possibility that the property increases in price overtime, therefore, building what I call quiet equity.

Real simple isn’t it? Yet, because it is simple, we as humans like to complicate things!

Yes there are risks in investing in real estate but 99% of the time you have control over your investment, you can see it, touch it and not some fund manager you will never meet & who gets a piece of your pie before you do or ‘your financial advisor’ who makes money off of you, even if you don’t!

Yes, there are ‘stories’ about flippers, deal makers and get rich quick people but in the real world, time balances everything out, even the tortoise and hare understand that!

Make time your friend, we all have the same 24 hours, some just use it better than others!

My investor clients do well!

London Ontario Income Property Tenant Woes?

If you own income properties in London Ontario, you probably have had  a few tenant woes in the past or have heard of war stories about problem tenants, and in most cases these stories involve  losing time and money.

Most rental property woes have a common theme. The common theme from every story or problem is:

 London Ontario Income properties tenant woes

Selecting the Wrong Tenant.

The 80/20 Rule, also known as Paretto’s Law, states that for many events, roughly 80% of the effects come from 20% of the causes. In rental real estate, this means that the majority of problems come from a very limited number of factors.

I would actually take this further with rental real estate and say that 95% of  problems come from selecting the wrong tenants.

I googled “How to find and screen tenants” and found 592,000 searches on the topic, yet some landlords keep having tenant woes and if you do, do you not think it is time to change how you do things?

That is the problem with information and how to’s, it is readily available but most don’t know how to implement the how to how-to! (Try saying that fast)

I had one landlord say to me that paying $20-$25 for a credit check is expensive! What does 3 months cost of trying to end a tenant residency?

Consistent tenant woes are like being overweight, you don’t get fat overnight! Eating a cheese burger and fries today will not make you fat overnight but overtime, it will. The same with a tenant, lack the discipline and the ‘how’ to screen tenants and the only weight loss you can expect is a lighter wallet and if you keep it up, you’ll lose sleep as well!

I should point out that some tenant woes are quite valid with some landlords & fortunately for me, those landlords do not read  blogs, wash behind their ears or ask me to help them with buying or selling properties in London Ontario.