EVER-EVOLVING RENTAL HOUSING PROVIDERS
Becoming a landlord, and “learning the ropes,” simply isn’t a one-time adventure. Let’s use an example of Susie who buys a newly built house as her first investment property. She learns how to finance and insure the deal = Step 1. Now she owns it! Next, she decides how to rent it out, and finds the paperwork to support it (short-term rental, long-term lease, rent-to-own, …). Hopefully she puts some research into carefully vetting potential tenants, and gets her first customer! This is where new investors tend to settle back and count the rent cheques – they did it! They figured out the game!
However, the longer Susie holds this investment property, the more she will realize that the story is an ever-evolving journey, rather than a checklist to complete once. Neighbours might complain about noise. Painting and minor repairs may be required when that first tenant moves out, and a new one moves in. Eventually an appliance or two might break down. There might even be a storm that requires replacing a roof. And just as she solves all of these problems, a wild card might be dropped in her lap – like Covid. Okay, there was no guidebook for a worldwide pandemic!
We also like to note that rental housing providers adapt to positive changes as well as adversity. For example, having great access to internet is an important offering to attract the best clients in today’s market. Soon, being able to offer our tenants a charging station for their electric vehicle will become an “added value” that helps both the landlord and the tenant. Providing home charging for the tenant will be a tremendous convenience; and finding a way to make it easy for that tenant to pay for the electricity they consume will prevent arguments in suited houses, or elevated expenses for the landlord.
Being a responsive and evolving landlord means there is a seasonality to our rental housing practices too. In June, we can often have our pick from a number of qualified potential tenants. In January, we might have to advertise more, offer an incentive, freshly paint our suite or be prepared to take a little more time to find the best candidate. Spring and Fall can be busy times with inspections, and then with any follow up maintenance to keep our properties in great working order.
Within a few short years, Susie has learned that investing in real estate requires continual learning, maintenance and people management. Sometimes investors like Susie reach a crossroads. Do they continue, knowing that their rental housing requires time each year? Do they switch to another investment vehicle like stocks? Or do they partner with someone who is willing to evolve and manage all the little bits and pieces that go with being a rental housing provider? Such a personal choice!
We renovate ugly and outdated houses to help busy professionals grow their wealth and save their time. If you’ve reached a crossroads and are considering a different approach to your real estate investments, reach out to us anytime. Conversations are always free and confidential. And cheers to your evolution and financial freedom from your investment properties!
