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that you always use the updated forms found on the Landlord and Tenant Board’s website, because the previous forms are no longer valid.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.

Take The Slow Path To Real Estate Investing

Turn One Rental Property Into 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.

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!

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

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.

Selling a London Ontario Income Property For More

    Maximizing the Value of Your Investment Properties

Most investors who want to  sell any of their  income  properties in London Ontario and area, want to sell  for the absolute highest price that the market will pay.  That is not usually the case though.

Leaving money on the table

  Canadian statistics show that properties that sell the quickest sell for the most money!The very same elements that make a property sell quickly also make the property sell for the most money.  But few investors know about these essential elements, let alone most sales people.  And,as a consequence, unknowingly, sellers are  leaving money on the table at closing, or wasting time selling their properties.

And time is money!

 In years of working with income properties, I’ve learned a few things  on how to sell  income  properties quicker and for money.

One of the tools I developed , I call “Top Dollar, Fast Sale Investment Property Audit.”

This audit is not like those simple market statistics Realtors or appraisers give you. It’s a complete audit of your property, from top to bottom, revealing the elements that affect a full price and a quicker sale.

Here are a few items covered in this audit

  • How to get the absolute highest price the market will pay for your property;
  • The difference between functional and cosmetic issues with your property; and how easy-to-fix and inexpensive problems may be costing you thousands;
  • How to “dress” your property to make it look like it’s worth thousands more (the way property is “rented” and the way it’s “sold” are two very different things!)
  • I’ll inspect your property from top to bottom to reveal the true problems affecting its successful sale: from specific condition issues, through lot sighting, property sighting, construction quality, schools and location.
  • I’ll show you how to minimize the impact of negative property elements, and promote the positive features, so you can get the very most money for your property.  How can I do this?  Because selling investment properties is not like selling ordinary real estate, there are skills & tools involved that most residential sales people do not have.
  • And unlike others, who will tell you anything just to get your listing, I’ll show you exactly what your property is worth with a reliable, real world analysis. No fancy figures. No hard sales pitches.
  • Just the facts, the brutal truth, whether you want to hear it or not.

There’s one more thing!  There is absolutely no fee for this, you are under no obligation what so ever and you do not have to sign anything.

Whats the catch?

 I get an opportunity to meet you and see the property, you are able to evaluate if I’m full of s**t or not and if we both think together that we can market your property and sell it, then you may hire me. If not, you get some insights you may never ever get and I go away empty handed and ride off into the sunset!

  I know there’s a tendency to put this aside and “think about it later.”  But every minute you spend time “thinking” and sitting on the fence can end up being a pain in the butt

    You have thousands of dollars and valuable time to gain …and absolutely nothing to lose by calling me at 519-435-1600 now.  I look forward to hearing from you. Don’t give your hard-earned money away needlessly