With all the bank rate changes recently, having cash flowing properties or even breaking even after your mortgage payments can seem out of reach for many small landlords.

​To help, here’s my list of the top 5 simple but effective ways to increase the perceived value of your rental.

1. Changing out dim bulbs and adding bright warm lighting can appear to add size and warmth to a room. Only mushrooms want to live in small dark spaces.
2. Refresh a room's appeal by replacing dated fixtures and old hardware like cupboard handles, door nobs and outlets. It’s not always cheap but often transforms that "dated" feel of a space.
3. Try to create a continuity to rooms by ensuring the flooring is the same throughout. Mismatching the flooring ie; going from laminate to tile back to laminate can make the room appear smaller and more fragmented than it is. When renovating, we try to have a uniform feel throughout. When I first started investing, I used to change colours throughout the unit. I have come to learn what tenants really want, is a blank canvass they can picture themselves in. Keeping things neutral helps the renter imgaine what their household will look like in your space.
4. Use spaces creatively, turn unused areas and unlivable space into desired custom storage, or an office nook. With more people working from home than ever before, having an area to set up their desk and files can be a big plus. Also, when deciding on a place to call home tenants think about where their belongings will go when they come to see it. The options for staging your home have really grown out there, if purchasing or renting furnishings isn't in the budget, there are virtual staging services out there that can provide visuals to help the tenant picture what is possible. 
5. A place to hang your stuff? Not every rental has closets, many older homes were not built with a closet space in the second or third bedroom. Providing a moveable wardrobe gives the renter a place to hang up longer outfits and seasonal clothing. No closets in the entrance way, a stylish rustic coat rack might just be the trick. 
6. What else can go? Are there poorly designed layouts or intrusive half walls affecting the flow and dynamic of your layout? Have an experienced contractor talk to you about your options in removing them.

Finding simple but effective fixes can help increase your rental price, gain equity and get it rented faster. A little elbow grease and creativity can have an impact on prospective tenants, give it a try!

Photo by Stuart Miles freedigitalphotos.net
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Also, in my experience, even the best tenants can wind up with a surprise such as delay in pay or an unexpected emergency. It’s preferable to work with the tenants towards a successful resolution. Open communication is important and I try to encourage tenants to let me know right away if they expect their rent payment to be delayed. This way, the owners and I can make arrangements on our end to cover things until it does arrive. 
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I’ll make sure the tenants are aware, provided they have paid before the filing notice on the N4, it’s back to business as usual. My goal is  to build long term relationships with the renters after all. 

If the tenants have had a good history with us thus far and have found themselves struggling to make payments on the first we can have a discussion about moving rent around their pay periods to avoid frequent lates. 

It should be noted I try to avoid trading rent for work on their unit as this could become a "rent reduction plan" and often clouds the relationship of landlord and tenant. 

If the termination date has arrived and the tenants have not yet paid you must wait until the day after to file an L1 Application to evict a tenant for non-payment of rent and to collect rent the tenant owes. If you want to collect the rent but do not wish to evict the tenant an L9 can be used to accomplish this. 

If you've made that tough decision to file on the tenant, in Ontario a late payment plan must be offered to the tenant. This should be done prior to your hearing. You and the tenant can work together to come up with a plan to make up for the rent arrears over time. It's recommended to make this an obtainable goal, demonstrating to the Landlord Tenant Board you are working with the tenant will go a ways to reaching a mutually desirable outcome. If you have been able to make an agreement, take this before the board  and they can put it in an order. This must take place to make the agreement binding. 

Keeping on top of things will prevent you both from losing track of how much is owed and to which month they are paying towards. Following the guidelines of the Landlord and Tenant Board and using your own discretion are part of having a successful tenancy. 

 *The above information is opinion and legal advice should always be sought before taking action.

Check out more helpful articles
​http://www.myrentalunit.ca/articles/guests-girlfriends-boyfriends-and-other-visitors-what-can-the-landlord-do
​http://www.myrentalunit.ca/articles/archives/03-2014

Is a landlord allowed to restrict, prohibit, or impose rules (visiting hours, number of visitors, increase rent charges etc.) on who a tenant allows to visit, stay long or short term, move in with as spouses, move in with as romantic partner, move in with just to share expenses?  Subject to a few exceptions (social housing)---the answer is a simple "NO".

The fact is that a tenant may have guests, short or long term.  The tenant may have as many roommates as he or she pleases, romantic partners, visitors, etc. etc. etc..  The tenant does NOT have to obtain the landlords permission or approval for this and in fact the tenant does not even have to let the landlord know that someone has moved in.  The landlord does not have the right to interfere with the tenant with respect to the tenant's guests.


RIGHT TO HAVE GUESTS/ROOMMATES/PARTNERS

No only is the landlord not permitted to restrict the occupants that share the unit with the tenant, the landlord may be held financially responsible for interfering with the tenant's right to have people live in the unit with them.   By example, in a case called Cunningham v. Whitby Christian Non-Profit Housing Corp. the landlord served a Notice of Trespass to Property against the fiancée of the tenant purporting to prohibit the fiancée from entering on the property.  The Court, in this case, held that the landlord's action constituted a breach of the landlord's obligations to the tenant and the tenant was awarded a 15 per cent rent abatement for the landlord's conduct.


There are numerous examples in the case-law of the Courts and the Landlord and Tenant Board finding such restrictions to be illegal and therefore awarding the tenant compensation.   The fact scenarios vary, but a consistent theme is that the landlord does not have the right to restrict, prohibit, or interfere with a tenant's right to have people live with them in the rental unit.   In a case called Radokovic v. Stoney Creek Non-Profit Housing Corp, the landlord served a notice of trespass against the tenant's ex-husband banning him from the complex due to his purported abusive and threatening behavior.  This was found to be contrary to law regardless of whether there was a "good faith" intention behind serving the Notice of Trespass.


There are numerous other cases where the landlord was found liable to the tenant for rejecting boyfriends/girlfriends, spouses and visitors and it has been routinely held that such restrictions and prohibitions amount to harassment and substantial interference with the reasonable enjoyment of the premises by the tenant.  "Reasonable Enjoyment" includes the right to have the full use of a rental unit for all lawful purposes.  Having guests, boyfriends, girlfriends, simple roommates, visitors is lawful and therefore part of what constitutes "quiet enjoyment" & "reasonable enjoyment" of a rental unit.   


Perhaps one may be inclined to argue that if there is a contractual term in a lease that both parties (landlord and tenant) agree to that the scope of what constitutes a "lawful purpose" has been restricted by contract.  The Board appears to address this argument by referencing section 4 of the RTA which essentially operates to make clauses in a lease restricting or limiting occupants or imposing conditions void and unenforceable.


What are the arguments that landlords make?  The argument I have heard the most is from landlords who are renting basement apartments or units in small complexes.  Landlords will maintain that the rent is "lower" because of an agreement to restrict occupancy of the unit to one person (or two or whatever the case may be).  Landlords will argue that having roommates increases the use of hot-water, electricity, utilities generally, and causes increased wear and tear of the rental unit.  Some will argue that these burdens entitle the landlord to restrict who is living in the rental unit.  No matter how compelling this argument may be---it is not the law.


The next question then, and one that I have gotten from time to time, is whether a landlord may charge an extra $[pick your number] because there is another roommate, occupant or guest living in the unit.  The answer is a resounding "no" as there is no legal basis under the RTA to have a fluctuating rent based on the number of people in a rental unit (exception in social housing rules).


THE RISKS


So, it is clear from my review of the law that tenants are entitled to have people live and stay with them and the landlord can't do anything about it.  Is that right unfettered?  Of course not.  Tenants are responsible for what happens in their rental unit and they are responsible for the behavior and conduct of their roommates, guests, visitors, etc..  If any of these people cause trouble, cause damage, harass, intimidate, commit illegal acts or anything like that in the rental unit or on the residential complex the tenant can be evicted and held financially responsible for what that person has done.


Further, the right to have guests is not unlimited.  If a rental unit becomes over-crowded then the tenancy can be terminated for that reason under the RTA (though it is a little difficult to ascertain what constitutes "over-crowding" in law--see section 67 RTA).

CONCLUSION

The take away from this article should be that tenants in Ontario have a virtually unrestricted right to have people move in, visit, and stay with them in their rental units.  A landlord who tries to restrict that, limit that, charge for it, or impose rules on it--such as visiting hours, will likely be violating the tenants rights and hence could be subject to financial orders and possibly fines if the tenant complains and files an application with the Ontario Landlord and Tenant Board.

Landlord and Tenant Law questions answered for tenants and landlords by Ottawa lawyer Michael Thiele.

Michael K. E. Thiele
www.ottawalawyers.com

My thoughts

It might be tempting  to block unwanted room mates and boyfriend/girlfriends from moving in which may put further strain on the facilities you are responsible for. However,their does appear to be a clear risk of interfering with the tenants rights. Operating within the guidelines of the Residential Tenancy Act protects you from having to compensate your renters. ​

How to determine the rental amount for your investment property

OVERVIEW & PURPOSE

Determining appropriate monthly rental amounts to charge your tenants, ensures your unit will be filled in a timely manner while allowing you enough cashflow to cover your expenses.

Factors of Consideration

1. Location
   
   
2. Home features
   
   
3. Appearance
   
   

Location
You have heard it before in regards to Real Estate, Location, Location, Location. It’s also true for your investment property. Picking the right city in the desirable neighbourhood all go into determining if the tenants in that area are willing and able to pay your price. Typically a cities population that earns a higher income can also afford higher rents. Unfortunately, buying in those cities will also come at a premium, keep a lookout for deals( a good Realtor can help with this).

Home Features
How many bedrooms and bathrooms is a paramount component of the market analysis, as having a specific number of these in a unit will be in more demand than others. With some research you could find out what is in the largest demand in the city you wish to invest in. Having central air conditioning, a garage or large backyard are all motivating factors which can contribute to pricing the unit . Updating to current desirable trends in finishings will also add perceived value to the place increasing its  potential for income such as;

• granite counter tops
  
  
• Hardwood or laminate flooring
  
  
• Newer lighting fixtures
  
  

Appearance
An emotional reaction begins the moment a potential applicant arrives at the property. If the home or building has been well maintained and nicely landscaped a desirability factor  will carry through the rest of the tour. A sloppy first impression will sour the applicant and you may not get them back no matter how fantastic the interior is. Once inside, the home should appear fresh, clean, bright and spacious. A coat of paint is one of the best return on your investment of time and money you can make. 

Comparison analysis
Checking out the local rental market should be the last stop before setting the price and hitting the post now button. A collection of several of the top local rental sites will give you a up-to-date price guide. At the moment we are using Facebook, Kijiji and Zumper as valuable resources . I search by neighbourhood, type of home - Single family or Multi-family, and the amount of bedrooms and bathrooms. When I've found a close match to these criteria, I will look at what's included with other similar rentals and aesthetics. How does your rental stand up to what's out there, if the property we are about to post holds up to all these factors, I feel comfortable pricing mine on the higher end of the average.  A trip around the neighbourhood can also give you an idea of how many rentals are close by. 

One time when posting a brand new build, we took a drive around and noticed 11 other rentals similar to ours in a two block radius. With that knowledge we realized we had to drop our price several hundred dollars due to a lack of demand at the time. 


In conclusion
Comparing your unit against others in the same area will give you valuable insight on the pricing of the property and I have attempted to give you the criteria of that comparison. If you have done your job right when advertising your upcoming vacancy you should be pleased with your results. If you are still unsure of what to charge and what to include with the rent, hiring a professional property management company can also be a valuable resource.

Tenancy laws are in place to protect renters rights when leasing an apartment or home. Without knowledge of your rights landlords may be violating yours. Below are some common questions and misconceptions about leasing. 

You may also like the idea of a background check. Ask them if they would provide one. This can be obtained at any local police department.. The process should take a few days. Of course getting references is a must. Call their current landlord and especially the previous ones. Your tenant background check shows  the real story behind the smiling faces.

So, their income looks good and they are who they say they are. Your next step  is to collect a rental deposit. Collecting first and last months rent should be done before handing over the keys. It’s important to have the right wording in your contract. Have a lawyer review your rental agreement before putting it in use. 

You can have the tenants meet you at the rental property or a neutral location. Have anyone over the age of 18 who will be living there to sign the lease. Check your local real estate laws but in Ontario the Landlord tenant act demands  the new signee receives a written copy of the lease and your legal name and address. 

The day of the move in, do a walk through with your new tenants in the unit . You should have a form for this as well.You can grab one of my here _

Get your tenant to sign after each item has been examined. The current conditions of the rooms, should be disclosed . After each article has been examined get them to sign beside your form . Another idea is to take a picture of each room and then get the tenant's signature. A video may also be sufficient.

I personally prefer post dated cheques as a form of monthly payments. You and the tenants must agree upon a method prior to moving. Many people are now doing online etransfers which will cost about $1 dollar but is instantaneous . And don’t forget before the big move in day, have your unit clean and ready.

This is not an exhaustive article on tenant signing. And I will be covering more details on the subject in future articles.