Michael P. Currie's Blog, page 2

Landlord Registry – More Red Tape Solves Housing Crisis

Hey landlords,

I can see the headlines now: “More red tape solves housing crisis” or “Halifax City Council regulates its way to a world class solution to affordable housing” maybe even “Landlord registry makes housing affordable.”

I often wonder if expensive rules regulations and policies really distract enough people from the reality of what is going on in relation to a housing shortage in a fast growing city like Halifax.

I would not dispute the fact that we have a shortage of housing in Halifax and surrounding area. I am also in the business of providing housing for people in exchange for money, so of course for some I am part of the problem and for others I am part of the solution.

The challenge I have digesting this latest stunt by the local government is that it does not do anything to add housing to the market or make housing more affordable.

In fact it does the opposite, for small timers like me who are arguably middle age (I turned 50 this year), it makes me think about selling my small portfolio. When purchased by a new investor likely the older ones will be part of the renoviction movement where long term tenants (who are all currently paying below market rent) will be displaced and my properties will be brought back on the market at a substantially higher monthly rent.

For smaller landlords with the 12 – 30 unit buildings that decide to sell, these will likely be sold to mid sized property companies with systems in place to renovate and charge more when people leave and for those that stay, they will be subject to annual increases and multiple (intrusive) inspections per year.

In addition they have a maintenance component which will make it easier for owners of older buildings to have them condemned, rationalize selling or taken offline completely. This opens the door to more older units being replaced with new much more expensive units, rather than looking at ways to keep these older buildings going.

My suggestion for our city council would be to look at ways to encourage people to become landlords. I could write a book on ways that the government could encourage people to become landlords. Perhaps they could form a committee (free of charge just council members brainstorming in city hall) about ways to address the primary concerns of landlords, and why they either have to build high rent housing or look for ways to cut expenses to make the business model worth doing on older properties.

I doubt that raising property taxes, threatening landlords with fines, administering a registry, providing zero protection for landlords against vandalism from bad tenants or lack of payment from tenants are the best ideas to encourage landlords to get in and stay in the business.

This is also combined with higher maintenance costs for materials and labor, increasing utility costs and don’t get me started on insurance. I am not sure that it is general knowledge that insurance companies ask about your tenant profile before they will insure a building, many will not insure or charge additional premiums for buildings occupied by certain tenant profiles.

Some may read the headlines coming out of city hall and think this is a victory for the unhoused or those renting substandard housing. The reality is that if a building is condemned because the revenue model does not support the upgrades, what do they think happens to the building or tenants. If it is taken offline and boarded up all the tenants will be displaced, when eventually someone sees value in the boarded up property it will be purchased renovated and brought back to life at much higher rental rates or torn down and much more expensive rental units will take its place. Where in contrast what if the government offered financial support to the building owner to keep the building in good livable condition at the current rent level. I have not been around all that long, but I have been around long enough to watch buildings that have been boarded up for years come back to life once property values increased in the area. I have also recently watched run down rental units get sold and torn down by the hundreds because they were not worth fixing and the land was better suited for another purpose.

If you are reading this from a landlord or tenant point of view, please read with an open mind and realize that a free market is better than a government run market. Question the reason for policies that do not enhance positive change. Question why the government that is supposed to represent you would want to put policies in place that do not benefit either side. Question why more regulation and squeezing out small landlords is a solution to a better housing situation.

This past week Kevin Russell along with many others shared some thoughts about the latest gimmick:

For Immediate Release
January 23, 2023
 
Landlord registry a $1 million gimmick that will worsen housing crisis

Halifax Regional Municipality’s proposed landlord registry will do nothing to solve the housing crisis and further punishes rental housing providers who must be part of the solution.

“Private rental housing providers, especially those who are small owner/operators, are sick and tired of governments attacking them with more red tape and higher costs,” said Kevin Russell, Executive Director of the Investment Property Owners Association of Nova Scotia. “In a high inflation, high-interest rate environment, with property assessments going through the roof, the provincial rent cap is forcing people to sell their properties at an unprecedented rate, reducing the available housing supply in Halifax Regional Municipality and making the housing crisis worse.”
 
Halifax Regional Municipality’s staff report on the landlord registry admits the cost to taxpayers to implement the new registry will be close to $1.2 million over the next four years and involve hiring four new by-law enforcement staff.
 
Ursula Prossegger is a Dartmouth property manager.  When an unhoused person was found repeatedly sleeping in one of her apartment building hallways last fall, resulting in a fire safety issue due to smoking, she turned to municipal and provincial elected officials in downtown Dartmouth for help.  Nobody at the municipal and provincial levels of government would help, opting to point fingers and blame different levels of government.
 
“Imagine what $1.2 million could do to help our most vulnerable?” asked Prossegger.  “It’s just shocking, especially during a time our municipal government is looking at tax hikes to deal with a budget crunch, that Halifax Regional Council’s answer for the housing crisis is spending tax dollars on red tape and more staff, instead of helping our community’s most vulnerable get a roof over their heads?”
 
Russell noted that Halifax Regional Municipality ignored stakeholder feedback submitted during consultations from 2017 to 2019, where the consensus was that existing bylaws would be sufficient to deal with maintenance issues they were experiencing.
 c. Kevin Russell
t. 0-2.789.0946
e. kevin@ipoans.ca
– 30 – 

For Immediate Release
January 25, 2023
 
Halifax Regional Council slams the door on public input on $1.2 million landlord registry

Despite Halifax Regional Municipality staff telling Mayor Mike Savage, “We haven’t spoken with landlords recently,” Halifax Regional Council overwhelmingly rejected holding a public hearing on its proposed $1.2 million landlord registry.

A mandatory landlord registry was approved at first reading by Halifax Regional Council on Tuesday.  Despite an effort by Councillors David Hendsbee and Paul Russell to schedule a public hearing at the second reading stage, all of the remaining Councillors voted against holding a public hearing.
 
“Many Councillors selectively target and blame those in the private sector that own and operate buildings that provide the majority of affordable rental housing in this city,” said Kevin Russell, Executive Director of the Investment Property Owners Association of Nova Scotia.  “The vast majority of private sector rental housing providers pay their taxes, follow the rules and act responsibly.  It is undemocratic and unfair for Halifax Regional Council to deny our right to speak.”
 
Russell noted that Council’s refusal to hold a public hearing also pre-empted discussion on the idea raised by Mayor Mike Savage during yesterday’s Council meeting to give rental housing providers more compliance time with the By-Law.
 
“IPOANS would have loved to have discussed Mayor Savage’s idea about a reasonable compliance period, but Council shut down that idea too,” added Russell.
 
Russell noted that unlike at City Hall, the Nova Scotia Legislature – through the Law Amendments Committee and Private and Local Bills Committee – allow all Nova Scotians to have their say.  IPOANS will be contacting Municipal Affairs and Housing Minister John Lohr to exercise the provincial government’s right under the Halifax Regional Municipality Charter to set aside the landlord registry by-law until a public hearing is held and discussion with IPOANS is held on Mayor Savage’s proposal to extend the compliance period.
c. Kevin Russell
t. 902.789.0946
e. kevin@ipoans.ca

Global News Wrote this article about the registry:

Global New Story

Halifax one step closer to rental registry after bylaw passes first reading

Halifax regional council has passed the first reading of a bylaw that would implement a registry of all rental properties in the municipality.

Under the proposed bylaw, all rental housing properties would need to be registered and owners and operators would need to create a maintenance plan and keep it current.

Council also voted in favour of amendments to strengthen the existing bylaw respecting standards for residential occupancies.

According to a municipal staff report, having a comprehensive list of all rental properties throughout HRM will provide a clearer picture of the municipality’s rental landscape.

It will also mean that the municipality can inspect units proactively, and not only after a complaint is received, “to ensure all rental units are held to the same minimum occupancy and building and fire safety standards.”

Those not in compliance with the bylaw could face fines ranging from $150 to $10,000, “depending on the type and recurrence of the offence,” the report said.

Minimum fines start at $150 for a first offence, $250 for the second offence and $450 for the third offence.

There will be no fee to register properties and owners and operators would be given a “grace period” to register until April 1, 2024.

“However after that time, rental housing that is not registered will be considered in violation and those property owners will be subject to a fine,” the report said.

read more here

Municipal Staff Report – Some more light reading for you.

If you have read this far I thank you.

If you would like to get on the free IPOANS email list you can sign up here

If you do not have a copy of either of my books you can get them now here or here

Until next time,

Design your landlord experience,

Michael P Currie

Landlord by Design

The post Landlord Registry – More Red Tape Solves Housing Crisis appeared first on Landlord by Design.

For My Local Peeps Lets Hang Out December 8, 2022

DO YOU OWN RENTAL PROPERTIES OR HAVE YOU CONSIDERED BUYING A RENTAL PROPERTY?

Join us on December 8th, 2022 from 7 pm – 9 pm for a Property Management panel discussion covering both long and short-term rentals with Jenna Ross, Owner of Happy Place Property Management, and Noelle McGough Owner of Monk & Nun. Following the panel discussion, we will hear from our special guest Mike Currie, a long-term local real estate investor.

Click the to register (limited seating)

610 Wright Avenue Dartmouth (Royal LePage Office) 7:00 PM

#novascotiarealestate #investmentproperty #royallepageatlantic #hrm #investinrealestate #halifaxrealestate #realtor #incomeproperty

And if you do not have a copy of my latest book, you can grab it here:

Landlord by Design – Moves to Make and Paths to Take for Real Estate Investing Success

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KIRKUS REVIEW OF LANDLORD BY DESIGN 2

Special thanks to Kirkus for doing a review of my latest book. Landlord by Design 2 – Moves to Make and Paths to Take for Real Estate Investing Success.

For those unfamiliar with this prestigious review company, here is an excerpt from Wikipedia:

Kirkus Reviews is an American book review magazine founded in 1933 by Virginia Kirkus. The magazine is headquartered in New York City. 

I think they gave a fair and accurate review:

LANDLORD BY DESIGN 2MOVES TO MAKE AND PATHS TO TAKE FOR REAL ESTATE INVESTING SUCCESS

BY MICHAEL P. CURRIE ‧ RELEASE DATE: SEPT. 14, 2022

Currie offers a primer on the basics of real estate investing.

In his first book, Landlord by Design (2016), the author, a real estate investor and landlord, tackled residential property management. This second work goes into what it takes to be successful at property investment. Instead of focusing on a few strategies in that area, however, Currie paints with a broad brush; the book’s brief, easy-to-read chapters touch on virtually every type of real estate investment vehicle, including room rentals, vacation rentals, house flipping, condominium investing, land purchases, fractional ownership, and others. A particularly low-risk strategy, Currie says, is “house hacking,” which he describes as “buying a property, living in part of it, and renting out the rest.” The book also includes useful information about key fundamentals, such as securing mortgages, real estate agents, mortgage brokers, bankers, and insurance. The book’s 36 chapters are short and to the point, and Currie is careful to present balance, assessing risks and benefits. When discussing real estate location, for example, the author offers a solid list of “main points to remember when looking at the economy of an area.” In a chapter concerning vacation rentals, Currie includes “common risks” as well as valuable tips on what questions to ask prospective vacation renters. In an intriguing discussion of “zero-down real estate investing,” he shares his own experience and provides seven ways to invest without making a down payment. Some topics, such as joint venture deals, syndication, and crowdfunding may extend beyond the capabilities of the average real estate investor, and because of the abbreviated format, the book addresses these subjects as well as others in only a cursory manner, so additional investigation will likely be required. The prose style is informal and breezy, and Currie seamlessly weaves his investing experiences into the chapters, with relevant examples and lots of bulleted lists. Still, readers should be aware that these experiences are mostly limited to the Canadian real estate market, and although his observations and suggestions may be broadly applicable, prospective real estate investors must take local regulations into account.A useful overview of property investment opportunities.

Pub Date: Sept. 14, 2022

ISBN: 9780995303706

Page Count: 232

Publisher: Beachrock Publishing

Review Posted Online: yesterday

Review Program: KIRKUS INDIE

Categories: BUSINESS | INVESTING | ENTREPRENUERSHP | GENERAL BUSINESS

If you do not have a copy of my book, you can hop over to Amazon and get it right now! – GET IT HERE

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Be Careful If You Are In A Relationship

Are you a person in a relationship that plans to invest in real estate?

If you’re in a relationship, I want to give you a little advice, this doesn’t just apply to real estate investing.

You both need to know what you want out of the relationship, the business, the risk tolerance and sacrifices you’re each willing to make to get what you want.

This may change over time, but to have a successful relationship, you need to change together.

The following are some questions you should and items to ponder before you invest in real estate:

Do you want or have any desire to explore the idea of real estate investing?

What if you break up?

Do you like people?

Why should we invest in real estate?

What real estate investing strategy should we use, and how does it fit with our lifestyle?

Who is going to manage the properties we purchase?

Who will be the primary contact when problems arise with tenant relations or maintenance issues?

What if we lose all our savings, our kids’ savings, and have to start over in debt, living in a box under a bridge?

Are you ok with tenants living in the same house as you?

Are you comfortable being in debt for significant amounts of money, which could include home equity lines of credit, credit cards, loans from family, loans from hard-money lenders, etc.?

If you disagree on a financial decision, who’s going to mediate for you?

Would you like to invest in an active or a passive way?

How much money do you have to get started?

Do you consider being a real estate investor risky?

If you have children and full-time jobs, how are you going to balance your time?Who will be the primary caregiver to the children?

If you’re out of alignment with your partner on real estate investing, I recommend having an honest conversation about your life goals and aspirations. You have no idea all the ways being a landlord could affect your relationship.

With care, attention, and focus, it can make your relationship even stronger.

Learn about this topic and many more in my book:

Landlord by Design 2 – Moves to Make and Paths to Take for Real Estate Investing Success.

Until next time,

Design your landlord experience,

Michael P. Currie

Landlord by Design

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Will You Help Me Reach My Amazon Review Goal?

Thank you to all of you that helped get my new book on the Amazon best sellers list.

I need help with one more thing.

An Amazon review – my goal is to have 25 in the first week – I currently have 7, so just 18 more.

If you have purchased my new book, it would be amazing if you could take a moment to do a review.

To make it super easy, here is the link to do the review!

I appreciate you for taking the time to do a review.

Also if you have not purchased my new book yet, you can purchase it with the following link:

Buy My Book

Have an amazing day,

Until next time,

Design your landlord experience,

Michael P. Currie

Landlord by Design

The post Will You Help Me Reach My Amazon Review Goal? appeared first on Landlord by Design.

$0.99 For My New Book On Kindle (Pre-Order Today)

Hey landlords,

Exciting news.

My new book is now available for pre-order and I set the Kindle price at just $0.99.

If you could take 30 seconds and pre-order your Kindle copy It would mean a lot to me.

My hope is to get this in the hands of as many current & future real estate investors as possible.

PRE-ORDER HERE!

P.S. Also it would be really special if you would be able to leave a review on the day of our launch (September 14th).

Until next time,

Design your landlord experience,

Michael P Currie

Landlord by Design

#kindlespecial #author #realestateinvesting101 #landlord #propertymanagement #Amazon #investing

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The Housing Price Crash That Never Happened In Halifax

Is anyone else in a boring stable market like Halifax that just went on a wild ride, but in reality not much will change other than houses won’t be listed for 500K over what they should be, just inline with what they are actually worth.

I will make a disclaimer, that this message is based on my opinion, do not base your real estate financial decisions on my ramblings, do your research and do what fits with your business model.

The number one rule that seems to get forgotten in a heated market is: do not buy real estate based on emotion.

I have been investing in Halifax for over two decades and with hind site would have likely made different decisions on my projects that never happened.

Halifax Nova Scotia is on the east coast of Canada. A fabulous place to raise a family and as a friend once said it is big enough for a symphony, but too small for an affair. The kind of safe place where areas of wealth or of note like the house that belongs to the American Consulate in my neighborhood does not require gates. People are friendly, but keep to themselves all at the same time. Many Hollywood celebrities have hid out here in plain site. The economy is a mixed bag with tech seeming to be the growing market of today. Lots of jobs, many on the lower part of the pay scale (hospitality, tourism, general labor), however, the location makes it a short plane ride to major centers like Toronto, Montreal, Ottawa & beyond, also direct flights are available to places like Germany, England & France, so with the work from home and downsized office movement it is attracting higher skilled and paid workers from around the world, which has boosted the income of many local businesses.

The solid base of the economy comes from Halifax being a military, university, research and hospital community with well known universities like Dalhousie, which offer programs like law & medicine as well as famous hospitals like the IWK Children’s hospital and of course the main part of the Canadian Navy is in Halifax (these organizations provide higher paying jobs). These type of organizations also mean lots of people come and go, which is good for the residential housing real estate sales sector as well as single family rental market.

The great part about the Halifax area is that you are close to everything. Halifax itself is a peninsula, so other than peak traffic times you can easily get on and off of the peninsula.

The peninsula is comprised of many sections, the most expensive is the Southend due to its proximity to the universities, hospitals, clubs like the Waegwoltic Club, this also makes its neighboring community of the West end quite expensive as well, but not uncommon to see a 200K difference between the Southend and Westend boarder.

Central & Northend have been gentrifying for years and I mean slow (we take it easy here on the east coast)

Then off the peninsula you have areas that are gentrifying and gaining new appreciation. Still lots of available land off the peninsula for new homes. The approval process is slow (like anywhere).

There is also two bridges that lead to an area named Dartmouth which used to be its own city before amalgamation. The downtown area in the past was viewed as a bit dodgy, but now is becoming trendy. Outside of Dartmouth is growing fast as well. Lots of land available and slowly being developed.

Ok, so lets get to the point, over the years we have had several times where prices have spiked. I can only speak to my observations over the past 20. One such time was back in 2001 – 2008 we experience a market correction. House prices were flat the previous decade and now all of a sudden they were on the rise. The mortgage business became competitive, interest rates started to drop, terms became longer (right up to 40 years). I can remember my first mortgage I was able to secure a fixed rate of 7.7% with 5% down over 25 years and I was ecstatic, many folks I spoke with at the time told me how lucky I was to get such a great rate. Then the next was around 5%, then 4% then 1.5 years ago I renewed the mortgage on my personal dwelling at 1.3%. A lot of money earned in our portfolio over the past decade has been thanks to low rates.

This was a great time to flip houses. You could buy put some lip stick on a property and sell for a higher price, no real talent required, just a weekend watching HGTV.

Then the crash happened, everyone freaked out. Did this mean lower prices for Halifax? Unfortunately not really. I mean houses were selling for much more in 2008 than in 2002, but they never went back to 2002 prices. Now right before this crash, which seems similar to what is happening now is a lot of folks are way, and I mean way over paying for homes (I will note that just prior to the crash a person with good credit could get zero down mortgage with a 40 year amortization).

This has created a fictitious market. You need to remove the fake inflation before you determine if housing values have decreased by any or any substantial amount.

I will give a local example: a bungalow (new construction) in Spryfield sold in 2013 for $315000 after being on the market for over 300 days. then it was listed at $499900 in November 2021 and sold for $561000 and sold in 17 days.

The house is nice, in a newer neighborhood next to the gentrifying community of Spryfield and about a 20 – 30 minute drive to downtown Halifax. It is in an area with a lot of land and housing construction going on, so supply is solid.

In this case houses like this (and there are plenty around it) will need to be listed at a regular market price in order to sell. I would suggest that yes, the price would be higher than what it was purchased for in 2013, however, even the list price of $499900 seems over inflated. for 2021.

When houses like this suddenly get listed for $449900 the headlines will read something like “house prices are crashing in this Halifax neighborhood”.

But, the reality is the crash never happened, not even really a price correction (because the asking and sold price are not a reflection of value, just pure emotion).

Now, hopefully these buyers are in it for the long haul and if it is their “forever” home 15 years from now what they paid won’t matter.

The good and pain in the ass part of our current mortgage rules are that you need to qualify for a rate that is higher than what you receive as well as only do a 25 year max amortization, so even in this case these folks are likely ok.

Next lets talk about simple supply and demand:

Housing supply shortage – For many years people moved away from Halifax and all Atlantic provinces. Now people are starting to realize how awesome of a place it is to live and raise a family. Then add an increase in the focus on immigration (programs like the Atlantic Immigration Program) and viola you have a housing shortage that will take years to catch up to. This is being felt in the rental market as well as the single family home market. A simple issue of supply and demand.

I know what you are waiting for, opportunity, well here is where I see potential for good deals in the next few years:

Small multi-family residential – unfortunately some inventors may have gotten caught up in the hype and between the rent cap, rising insurance, property tax, interest rates, combined with an inflated purchase price, may make holding onto a small rental property either a huge drain on personal finances or not feasible at all. Fringe markets where rents tend to be lower will be a great place to look.

Larger multi family – as lending rules tighten up, larger multi-family and commercial properties will likely go back to being valued based on ROI, not emotion. The opportunity will come from buying from those in a similar situation to the small multi-family buyer. Especially out of town buyers that have purchased harder to manage properties for a high price. They may want out. Rural markets where rent increases are restricted based on local market conditions would be especially good to look at. Some investors may have purchased based on the expectation of upgrading the units and charging much higher rents. Unfortunately in many areas around and outside of Halifax finding qualified tenants who are willing to pay higher than usual rent for an area might be a challenge.

People who migrated from other parts of the country wanting to move back home – I believe Halifax and Nova Scotia as a whole is an amazing place to live and raise a family, however, I also question the decision by so many (most from Ontario) to blindly move from another province and buy into the notion they will be living happily ever after. It is a slower pace, and yes the people are friendly, but only if you are not perceived as an arrogant wind bag (or a type of personality that would get you alienated from many people in Nova Scotia).

I am not so sure many of these people will want to stay long term and will be looking to sell fast to go back home. A contributing factor beyond loneliness / not fitting in could be a requirement to return to the office or wanting to be back closer to family.

Well to sum up my two cents. Those hoping for a housing price crash on properties in the Halifax area are likely going to be disappointed.

That being said if I have learned anything at all over the past few years, anything can happen and the only true prediction I can really make is that the real estate market is unpredictable.

Now, I have not included anything to do with a potential recession, once again we have a heavy concentration of government, military, healthcare and education jobs, so we are a bit insulated from major economic downturns, but that is a topic for another day.

The bottom-line is that with patience and capital ready to deploy you can find opportunities anytime. Do you own research, don’t get caught up in any hype (positive or negative) stick to the fundamentals of your business model. Do what works for you.

Until next time,

Design your landlord experience,

Michael P Currie

Get a copy of my book today right here

Photo Credit Goes to Amanda Klamrowski

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How I Got 80% of My Heat Pumps For Free

Hey Landlords,

I wanted to share my amazing experience with the Efficiency Nova Scotia Program for Multi-Family Affordable Housing. I can only speak to the Nova Scotia program, however, I would recommend searching for energy efficiency upgrades in whatever province or state you reside.

My journey began when I was turning over a unit in a two unit property that was occupied by a long term tenant. You see in this property the upper unit was still heated by oil (I have been paying $750 per year just for insurance on the oil tank) so I wanted to convert the upper unit to electric baseboard heat with a heat pump and add a heat pump to the lower unit (which was already on electric baseboard heat).

I decided the best time to make these changes were while I had a vacancy (which is quite rare). I contacted our regular heating expert (Ryan Backman of Backman Heating & Cooling) He arranged for an electrician to meet with him and his crew to do up the estimate.

I told Ryan my plan was to pay in full for the upgrades, but to finance the heat pumps with Nova Scotia power, I mentioned that I was also going to look into the heat pump rebate program offered by Efficiency Nova Scotia. I had read about this program from information I received from IPOANS (Investment Property Owners Association of Nova Scotia). It sounded too good to be true, I mean 80%, plus they would finance the rest (including the cost of the electric conversion upgrades).

I submitted the online application on the efficiency Nova Scotia website. It was surprisingly easy and I was contacted right away by an efficiency coordinator. She answered all my questions and sent me a pre-approval.

The application was pretty simple.

Summary from the website: “Buildings with 1-3 units are eligible for rebates up to 80% of the pre-tax cost for heat pumps and heat pump water heaters only. The agreement term for buildings with 1-3 units is in effect for 6 years from the date rebates are provided by Efficiency Nova Scotia. The application should be accompanied by a quote for your desired products. Eligible heat pumps can be found here: www.efficiencyns.ca/guide/minisplits/. Eligible heat pump water heaters must have a minimum Energy Factor of 2.3. All upgrades must be preapproved by Efficiency Nova Scotia to qualify for rebates.”

I had the work completed approximately a month later. I sent the final invoice along with pictures of the heat pumps.

I was then sent an agreement with the rebate and loan terms for the other 20% that the rebate did not cover (the other 20% will be paid back over 24 months).

I signed and sent back the paperwork and within 2 weeks I had the full $9200 ($8000 + 15% tax) deposited into my bank account. I paid the HVAC company and just need to honor the terms of the affordable housing grant agreement for the required term.

The whole process from estimates to grant money in the bank was just over 60 days.

I will admit I was skeptical of both the affordable housing requirements and the complexity of the paperwork. To learn more take a look at the agreement requirements.

The bottom-line is that even if you do not think you will qualify for anything, it is worth a try. Often these programs do not get applicants, so the money allocated just sits unused. It was definitely a great lesson learned for me. If you are reading this and live in a different province, state or Country than Nova Scotia Canada, it would be great if you provided links in the comment section to grants available in your area.

Until next time,

Design your landlord experience,

Michael P Currie

Landlord by Design

Make sure to pick up a copy of my complete guide to property management.

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Real-Estate Expert’s Guide For Finding A Good Property Manager

Hey Landlords,

A great property manager can make or break your real estate portfolio. Let’s face it, real estate is a great way to build wealth, but can also be extremely challenging when it comes to building maintenance and tenants.

This is a guest post written by Wayde Hildrew of :Different property management about finding a good property manager. Make sure to check out their other awesome blog posts and of course if you need property management they can help.

This evolving company currently has locations in Australia (Melbourne, Brisbane, Sydney) , Colombo Sri Lanka with a plan for more locations in the coming years ahead (if your looking for property management in one of these locations get more info here).

Real-Estate Expert’s Guide For Finding A Good Property Manager

Buying real estate is one of the largest investments you can make, so it comes as no surprise that it’s crucial you make a good choice for your property manager. You’ll want someone who’s both competent at managing your rental property and has your best interest in mind. Making a poor choice could lose you valuable tenants and make property investing much harder than it needs to be.

Our property expert Wayde Hildrew has outlined four steps for how to find a good property manager. We’ve also included a list of questions you should ask a property manager at an interview, all the while setting you up with essential tips along the way. By the time you finish this article, you’ll be well-equipped to find and evaluate your options, and choose the right property manager with confidence.

Step 1: Establish your selection criteria

When thinking about how to find a good property manager, you should first think of yourself as an employer. This makes sense since you are, after all, hiring someone to do work for you at a price!

This means that you’ll need some selection criteria. It’s about having an idea of what you’re looking for before you start searching for candidates.

Wayde explains that there are three key factors that you should take into evaluation:

PriceService levelAbility to manage risks and get results

A large number of property managers will offer trade-offs between these factors. For example, a property manager might provide an all-encompassing service with cutting edge technology, but it’s at a price premium. Or, they might be a low-cost provider but have standardised their activities across large areas, which gives them no location-specific expertise or experience to minimize risks.

However, Wayde further shares that investment property owners who do their research don’t necessarily have to trade off one benefit for another.

Step 2: Find a pool of property managers

How do you find a good property manager? Word of mouth is always a great place to start. On top of that, there’s a world of resources online which can help you vet potential candidates and come up with a list of prospective property management companies. 

Wayde recommends that you talk to other investors for insights on their experiences and property manager recommendations.

“People who have been through the process before will have had positive and negative experiences, and are good to speak to.”

He further adds that you can look at what is marketed online to find good property managers. Put yourself in the shoes of a potential tenant, and browse rental listings online in your relevant area to see which property managers are doing a good marketing job to find some potential candidates.

Whenever you come across a candidate, you should Google them and jump on their website to see how they work. Check their fee structure and the service they provide, read reviews and decide if they’re a good fit within your criteria.

Once you have a list of about 2-4 very strong property managers, you should reach out and arrange an interview with each candidate. This is when the first test happens!

“If you don’t receive a response within 24 hours after reaching out, then it’s probably going to get even worse once you’re actually in business! If that’s the case, then you should probably just cross that property manager off your list.”

Step 3: Interview property manager candidates

Now it’s time to get down to business and have a chat with the candidates directly. So, how do you know what to ask a property manager in an interview? And how do you find the best property manager from the interview?

You should prepare strong and difficult questions to ask the property manager that tests their knowledge of the market, proactiveness, and ability to set you up for success. We’ve come up with a list of 8 questions to guide you through this interview process.

8 Questions You Should Ask When Interviewing a Property Manager1: Can you outline your fee structure?

What does a real estate property manager do for the ongoing property management fee, and what services will cost extra? 

You want to get a full breakdown of property management fees to make sure that you know from the get-go exactly what you’ll be paying – if your management fee covers all the possible duties and responsibilities of your property manager, or if you’ll be charged extra for services like maintenance and inspections.

“A lot of property investors only look at the management fee, but you also need to ask about the entire cost structure. Then the property manager has to outline marketing fees, annual fees, and so on.”

Wayde Hildrew, :Different Property Expert

2: How many properties do you currently manage?

The property manager should tell you about the size of their team and how many rental properties each agent or team manages. It’s not uncommon for property managers to be overworked from managing too many investment properties, especially if they’re required to manually perform repetitive tasks for each and every property under management. That leads to poor service for you.

The best property management agencies will tell you what it is they’re doing that makes them successful no matter what number of properties they’re managing at the time. Those who have been able to achieve this, for example, would have employed technology to not only make communication easier, but also automate repetitive tasks that otherwise would need to be done manually.

3: How many years of industry experience do you have?

A property manager who has rich experience, particularly in your local market, is going to excel at making the right improvements to your investment property and mitigating risks.

Did you know that the average property manager is in their early twenties, and the average time someone stays in property management is only about six to nine months?

“If that’s what the agency is offering, then that’s a red flag that property management is not really what the agency is prioritising.”

4: How do you screen and select tenants?

Having a strategy for finding high-quality tenants who will stay in the long-term is crucial to successful property management. It would help if you were looking for a property manager who has a rigorous tenant screening process and a strong advertising strategy to maximise the prospective tenant pool. 

Don’t forget to look out for signs that the property manager will endeavour to keep the tenants happy even after your property is leased to them.

“A lot of the issues that happen with tenants is because of a lack of communication on the agent’s part. You should get an agent who works for the investor, but also understands that the tenant is key. This focus should be communicated to you.”

Wayde Hildrew, :Different Property Expert

5: What could your agency be doing better?

You want to see that the property manager is aware of their flaws and that they’re investing in their processes to provide better service.

“If they’re not willing to tell you something that they can improve on, then that tells me they’re not a property manager who is focused on always improving their service level. They should be able to answer this.”

If the property management agency has good technology, staff and does marketing right, then that’s typically a good sign that they’re investing in their processes, and that they take property management seriously.

6: Do you have any recommendations on how I can reduce my risk or increase my return?

Even if it’s your first meeting, the best property management experts would be able to suggest ways of increasing returns and reducing risks, such as making improvements to your property and locking in longer leases. They should be able to let you know what those ideas are from day one.

“I would always ask this question. You want a property manager who is looking at your real estate in the bigger picture – one who tries to figure out what they can do to solve future problems from day one.”

Wayde Hildrew, :Different Property Expert

7. Are you the one who will be managing my property?

It’s not uncommon to find that the person you’re interviewing isn’t necessarily the one who will be responsible for the day-to-day management of your property. Unless the agency you’re interviewing has a team-based approach that has proven to be successful, you might feel more inclined to understand the expertise of the specific property manager who will be looking after your property. 

8: Do you have any questions for me?

You want to see that the property manager is trying to understand what you specifically are expecting of them. They should ask you about your preferred methods of communication, your peeves, and so on so that they can work within those limits.

To make the decision-making process easier for you, we’ve created a free interview questionnaire form that you can use when interviewing prospective property managers. 

When you’ve interviewed all of the top choices on your list, it’s time for you to make a choice and sign a residential property manager contract!

Step 4: Check if you’ve made the right choice

So you made your choice and you signed a contract with a property manager. Is that it? Not quite!

Wayde recommends that you should follow up on your property manager, and do some routine checks and controls for the first couple of months.

Are they communicating with you? Letting you know what’s happening to your property? Are they providing documentation to you as soon as it’s completed? Have they completed their first routine inspection and how did it go?

“The first three months is where you should be gauging whether your property manager choice is a good one. That’s where you’re going to know the real quality of the property manager.”

Wayde Hildrew, :Different Property Expert

If you have to chase them up for information, or you simply don’t have access to what you need, then that’s a sign that they’re either managing too many properties or that they always communicate scarcely.

I hope this helps you on your landlord journey,

Until next time,

Design your landlord experience,

Michael P Currie

Landlord by Design

Make sure to pick up a copy of my complete guide to property management right here!

The post Real-Estate Expert’s Guide For Finding A Good Property Manager appeared first on Landlord by Design.

Understanding Heat Pump Terminology

Hey landlords,

I wanted to share some information from my friends at Greenfoot Energy Solutions. Heat pumps have been and are becoming super popular for both the ability to provide heat, but also air conditioning.

If you plan to have one installed, make sure to check for local rebates. I recently received an 80% rebate (plus had the other 20% financed by Nova Scotia Power) when I had heat pumps installed in a two unit property we own. I will say there are several conditions, however, the process to apply, qualify and receive payment was surprisingly easy.

If you are in Nova Scotia you can check out the Affordable Housing Rebate – Efficiency Nova Scotia.

Ok, back to Greenfoot Energy solutions, Greenfoot is over 200 employees strong and has locations throughout the Maritimes with plans on expanding throughout Canada and the United States.

They have an awesome glossary of terms related to heat pumps.

Heat Pump Glossary A

Air Handler: The indoor component of a heating and cooling system that circulates air throughout a building.

Air Source: A type of heat pump that extracts heat from the air and transfers it elsewhere to raise or lower the temperature of a space.

Air to Air: A variety of air source heat pump that collects heat from external air and deposits it into the air in an indoor space that needs to be heated, or collects heat from indoor air and disposes of it outside to cool an indoor space.

Air to Water: A variety of air source heat pump in which a direct action outdoor unit is combined with an indirect indoor system such as radiators. It collects heat from external air and transfers to water to provide heat through a radiant heating system.

B

British Thermal Unit (BTU): A unit of measurement that refers to the amount of heat necessary to raise the temperature of one pound of water by one degree Fahrenheit. One BTU equals roughly 1,055 joules of energy. BTU is used to measure the output of heat pumps and other HVAC systems.

C

Cubic Feet Per Minute (CFM): A unit of measurement that determines airflow volume based on how many cubic feet of air pass by a non-moving point in one minute.

Carbon Footprint: The total amount of greenhouse gas emissions created by an individual, organization, event, service, or product—such as a heating system—expressed by carbon dioxide equivalent.

Closed Loop: A type of geothermal heat pump that cycles a mixture of water and antifreeze through a closed loop of pipe buried in the ground to collect heat.

Cold-Climate Heat Pump (CCHP): Unlike conventional air-source heat pumps, a cold-climate heat pump uses an inverter, or variable speed drive, that makes it capable of efficiently heating homes in colder climates with temperatures that get down to approximately -25 degrees Celsius.

Compressor: Located in the outdoor unit of a heat pump, the compressor maintains the flow of refrigerant through the unit and compresses liquid refrigerant into a hot gas, which is then moved to the condenser coil for cooling or the evaporator coil for heating.

Condenser Coil: A component of a heat pump’s outdoor compressor unit that works in tandem with the evaporator coil inside indoor units, such as the air handler or blower compartment, to cool an indoor space. It receives refrigerant in the form of hot gas from the compressor and cools it into a warm liquid, which is then moved to the evaporator coil where it expands and cools.

Coefficient of Performance (CoP): A ratio that expresses the output of a heating unit in relation to the input of energy. It is the rated capacity of the machine divided by its rated power input, though it can be expressed as a single figure or percentage.

D

Damper: A device that opens and closes to regulate how much air flows through vents, or ducts in a ducted heat pump system.

Direct Expansion Heat Pump (DX): A type of geothermal ground-source heat pump in which refrigerant circulates through a pipe buried in the ground to collect thermal energy, unlike other closed loop systems that circulate a mixture of water and antifreeze.

Drain Pan Heater: An add-on unit that consists mainly of a heating element. It can be added to the outdoor condenser unit of a heat pump in a cold climate to warm the drain pan, so ice does not form in the drain pan or at the base of the condenser unit.

Ducted Heat Pump: Also referred to as a central heat pump or a forced air system, it connects to ductwork inside walls and ceilings and uses the ducts to move warm or cool air throughout a building.

Ductless Heat Pump: Also referred to as a mini-split, it uses air handlers connected to an outdoor compressor unit to control the temperature of individual rooms.

E

Efficiency Rating: A ratio that measures the efficiency of a heat pump. Annual heating efficiency is measured by HSPF, while annual cooling efficiency is measured by SEER.

Energy Star: A program run jointly by the U.S. Department of Energy and the U.S. Environmental Protection Agency to promote energy efficiency. The Energy Star logo is a symbol of certification for buildings and consumer products, such as appliances and heating systems, that meet certain standards of energy efficiency.

Evaporator Coil: A component of the air handler that works together with the outdoor unit’s condenser coil to complete the heat transfer cycle. When a heat pump is in cooling mode, warm air inside the room is transferred to the refrigerant in the evaporator coil to cool the air, and the refrigerant moves to the condenser coil outside to cool down. In heating mode, the heat from the refrigerant is expelled into the room to warm it up instead of moving outside.

Electronic Expansion Valve (EEV): Unlike a conventional thermostatic expansion valve that is controlled by springs, bellows, and push rods, an EEV controls the flow of refrigerant into a direct expansion evaporator based on signals it receives from an electronic controller using a thermistor.

Enhanced Vapor Injection (EVI): A technology that allows cold-climate heat pumps to improve performance in cold temperatures by allowing increased refrigerant flow into the evaporator coil.

G

Geothermal: Also referred to as ground source, water source, or earth-coupled, this is a type of heat pump system that collects thermal energy from the ground or a nearby water source and transfers it to air or water inside a building to heat an indoor space.

H

Heat Output: The amount of thermal energy a heat pump releases to warm a space, measured in BTUs.

Heat Pump: A temperature control system for buildings that transfers thermal energy from a cool space to a warm space via the refrigeration cycle. In cooling mode, it removes heat from an indoor space to make a building cooler, and in heating mode it transfers heat from outdoor sources such as air, ground, or water and moves it inside to make a building warmer.

Heating Seasonal Performance Factor (HSPF): Also referred to as Seasonal Coefficient of Performance (SCoP), this is a measurement of heating efficiency for heat pumps that is expressed by a ratio of the total thermal energy provided by the heat pump compared to the amount of electricity it uses to operate over the course of a year. HSPF differs from CoP in that it measures annual performance specifically.

Heating, Ventilation and Air Conditioning (HVAC): A broad term for the technology that provides environmental comfort inside buildings and vehicles. It can include heating, cooling, ventilation, air filtering, and humidity control.

Hybrid: Also called dual-source or multiple-source, they are varieties of heat pump systems that combine multiple geothermal sources, or both geothermal and air source.

I

Indoor Airflow: The movement of air inside in a building, calculated by cubic feet per minute (CFM).

Inverter: A component in a heat pump that controls motor speed to increase the system’s energy efficiency. A conventional furnace or air conditioning unit switches repeatedly between on or off, and the continual stopping and starting uses a significant amount of energy. Conversely, the inverter in a variable speed compressor allows for a full range of operation, similar to the accelerator in a car, and automatically adjusts output for optimal efficiency.

K

Kilowatt (kW): A measure of power equal to 1,000 Watts.

Kilowatt Hour (kWh): A unit that measures the amount of electricity used in an hour, equal to one kilowatt of power sustained for one hour, or 3,600 kilojoules.

L

Line-Set: A pair of copper tubes that connect a condenser to an evaporator so refrigerant can move between the two. The smaller tube is called a liquid or discharge line and carries the liquid refrigerant to the evaporator. The larger tube is called a suction line, and it moves refrigerant in its gaseous form back to the condenser.

Load Calculation: A calculation that determines the size of heat pump necessary to provide adequate temperature control in a given space. Load calculations involve analyzing factors such as air volume of a space and the level of insulation.

Low Ambient: Heat pumps that work well in colder climates. In the past, heat pumps were typically only effective in milder climates. However, advances in refrigeration technology have allowed manufacturers to create low ambient heat pumps that can be used in much colder climates, down to around -25 degrees Celsius. Ductless mini-split is the most common type of cold weather heat pump.

M

Mini-Split: A type of ductless heat pump system in which an outdoor compressor unit is combined with multiple air handlers inside, usually one in every high-use room.

O

Open Loop: A type of geothermal heat pump that collects thermal energy from groundwater or water from a source such as a pond, lake, or well. It pumps water from its source, circulates it through a loop of pipe, and deposits it back into the source.

Outdoor Unit: Also referred to as the compressor or condenser unit, it is the part of the heat pump system outside of the building that contains the compressor and the condenser coil.

R

Refrigerant: A fluid used in heat pumps and air conditioning systems that can change from a gas to a liquid state and back again repeatedly. There are many different types of refrigerant, which are classified in three broad categories according to how they absorb or extract heat. Refrigerants are highly regulated—and some types are banned in Canada—because of their high levels of toxicity and flammability, as well as the impact that some types of refrigerant have on the ozone layer.

Refrigeration Cycle: A reversed thermodynamic cycle in which thermal energy is transferred from a cooler space to a warmer space, the opposite of what happens naturally without intervention from a system such as a heat pump.

S

Seasonal Energy Efficiency Ratio (SEER): A measurement of the cooling efficiency of heat pumps and air conditioners expressed by the ratio of total annual cooling output of the system compared to the amount of electricity it uses in a year.

Single-Zone: Instead of one outdoor unit connected to multiple indoor air handlers, a ductless single-zone heat pump is a single compressor connected to a single air handler.

T

Thermostat: A temperature regulating device that senses the temperature in an indoor space and turns a heat pump system on or off as needed to bring the room to the desired temperature that has been programmed. Conventional thermostats must be manually adjusted to change the temperature in a room, but a smart thermostat can be programmed with a schedule that adjusts the temperature based on the time of day and week.

Thermostatic Expansion Valve (TEV or TXV): A type of metering device that is a component of heat pumps and air conditioner systems. They control how much refrigerant is released into the evaporator coil. Despite their name, thermostatic expansion valves do not regulate the temperature of the evaporator.

V

Variable Speed Drive (VSD): A heat pump with a variable speed drive uses an inverter motor to increase energy efficiency by allowing for a full range of operation, similar to a vehicle accelerator, instead of a conventional unit that is either at 0% or 100% with no operation in between those values.

W

Water Source: A type of geothermal heat pump that collects thermal energy from a water source and transfers it either to indoor air (Water to Air) or to water (Water to Water) that is used to provide warmth through a radiant heating system.

Please bookmark this glossary on your browser so you can refer to it whenever you need information about heat pump terms and definitions!

PHONE: (800) 380-9384 EMAIL: info@greenfootenergy.ca

Until next time,

Design your landlord experience,

Michael P Currie

Landlord by Design

Get a copy of our complete guide to property management right here!

Make sure to watch out for our new book – Moves to make and paths to take for real estate investing success.

The post Understanding Heat Pump Terminology appeared first on Landlord by Design.