Discussions

I am interested in purchasing a rental property in Brandon. I would like to get advice from anyone who has experience in managing rental properties (pros and cons).  
Any comments or advice welcome.

Go through the provincial laws and make sure you understand them. For example, as a landlord, you have to renew the tenants lease at the same term length. The only way to get them out is if they're breaking the rules (like not paying rent) or you're moving into the unit. You can be completely stuck with someone who drives you crazy lol.

Nothing wrong with charging 2 Deposits.  
Damage deposit and Pet deposit which both half the rent !!  
As pet owners ourselves, and owners of rental properties.....I could never get rid of my cats to live somewhere they're not allowed so if we should have new tenants with pets, I would charge them pet deposit as well as damage deposit and this way, everyone is happy.

All good stuff to look into and consider. I have a few ideas on what rules I want in place. I will have to learn the tenancy laws for sure.  
Thanks.

Always have a written agreement, make sure they know who is responsible for what ( clearing side walks and such), also if it’s a multi until rental make sure there are rules for quiet times and or what to expect if things aren’t going well.

It was easier to clean from the pets than the people. We have rental property and previous tenants have destroyed our small rental home. Again and again we have had to paint, repair and clean. I would not have rental property again. It’s a shame how some people treat their apartments. If they had their own home, I know they would treat it the same. Some people just don’t care how they live. And unfortunately the landlord gets stung.

Be prepared to deal with issues. Don't have a personal attachment to the home. Don't be too nice. More often then not your will be disappointed in the way your investment is being treated. If you have a late paying tenant start the paperwork and eviction process right away. 9 times out of 10 the tenant is late a week the first month with a sob story and a promise that it won't happen again the next month it's 3 weeks later.  
 
Smokers will always tell you they only do it outside, most will end up smoking inside.  
 
Make sure to get forwarding addresses for the tenants and lots of information about them. If you need to serve them after they leave to recoup money you need to locate them.  
 
And the most important rule. Don't purchase a property that does not cash flow $1000+ per month after your mortgage taxes insurance. You need this cash flow to pay for major repairs (roof) and cover lost rent and vacancies. Also don't bank on the property increasing in value when you calculate equity that's being built.  
 
 
A short list of issues I have come across in my time as a landlord are as follows.  
 
Dead tenant  
Mice  
Bedbugs  
Sewer backup  
Tenant destroyed the apartment (spray paint inside, hole in shower wall, repainted apartment with no masking or permission)  
Domestic disputes.  
Tenants in different units fighting and calling the police.  
Smoking inside  
Drug users attracting break-ins  
Tenants routinely leaving furniture and mattresses when moving  
Washing machines are good for a breakdown every year or 2. Tenants tend to overload them  
Tenants destroying laminate flooring not knowing how to clean it  
 
Edited by bean, 2020-01-28 23:16:06

Even if you only have the down payment saved for a rental place I would highly recommend doing some calculations on what it would make in an index fund. Had a rental and it was just not worth it.

You could buy shares in a REIT on the TSX. Let someone else worry about renting out the property.

do if your tenants sell drugs out of your rental place?

If you know for sure, you can evict for illegal activities taking place on the premises.

Damage deposit is 1/2 the rent  
Pet Deposit is a FULL months rent.

your local 5-0 knows and so far SFA has been done about it? What's the alternative?

I didn't have a "pet deposit on my last place (not currently living there because of the the landlord) I was an excellent tenant and kept my place clean with my cat. When we moved out we left, the place was in better shape than when we moved in.  
 
The landlord did not clean the apartment or even attempt it as there were marks on the wall where it looked like someone ripped of mirrors, the floor was filthy and the tub was full of gravel. Yes I said it gravel. And I could take a shower without shower shoes for months as the tub would not drain. When he finally did drain the tub 6 feet of hair came out that was not mine.... ewww  
 
I still lost my deposit as even though it said in the agreement 2 weeks notice (I was there for over 5 years) he wanted another months rent. He had the place rented out a week later....

Did you contact the tenancy board?

I hate it to be honest. We actually have our property up for sale. We have good tenants, but rent is still late, house still gets damaged. Our land taxes have gone up due to non payment of water bills. I find it frustrating, but I also don’t like confrontation.

Sold my rental property last year. I found it was getting more difficult to rent because of all the new housing options being built in Brandon. My property was a stand alone house with a yard. If I were ever to get into the landlord business again, I would buy a property that was in an apartment style condo unit. The maintenance cost of a stand alone house is much higher. Outside work, such as shingles, drainage, fences etc. were costly.

Selling off rental property? Doesn't everyone that owns property with all the rent being charge get rich? Lol. Funny how people think that landlords are only out to get rich. As a home owner sometimes I wish I was still renting. Just this month alone I had a frozen sewer line and washer crap out on me. 2 grand later I am back in business. People spew about affordable housing and how someone on min wage should be able to own their own home. Yet complaints are about how to find a down payment on min wage and so forth. I don't understand even if there was affordable housing and barely make a down payment how the heck are they going to pay for odds and ends that happen.....furnace conks out, water tank goes, etc.

But our tax dollars are going to help people be first time home owners! I don't think that's right. like you said, who pays for the new furnace, water tank etc.? Sometimes homeowners have to cough up a lot of cash. And then comes the big tax bill every year!

Owning a rental property in Brandon will present many challenges. The first being making a profit after expenses. Many have tried and found out that it is not easy to make a buck after expenses and upgrades. The tenant will want everything Top Shelf and there will be appliances breaking down and heating and plumbing expenses on a yearly basis. There is Insurance costs, snow removal costs , fire inspections and safety costs. Getting the right tenant is also a challenge. The good part is you will eventually visit the tenancy office and find out landlords have no rights.

I would say that they were not good tenants from what you stated.