Residential Management Services for Investors
Leasing Preference And Tips
ATTACHÉ - TMS will counsel you with regard to the options, which are available to you as a landlord in setting reasonable requirements for any tenancy.
The selection of a Management company or other individual to look after your investment property is a process that you, will undertake with careful scrutiny. Your Investment property is an important valuable asset. In our experience we have encountered some people who have undertaken to manage on their own with little or no experience and unfortunately have ended up with more problems than they can handle. Inevitably they are over whelmed with tenants not paying the rent, calling at all hours of the night and more.
We would suggest that you engage a professional property management firm whether that be ATTACHÉ - TMS or another credible property management firm. One of the easiest ways to determine the capability of the property management firm is to inquire about the number of years the company has been in service. As well, the number of permanent full time staff and the location of the business facilities will also indicate the level of professionalism. We at ATTACHÉ - TMS take pride in our operation and infrastructure and would welcome a visit from you to our offices.
Finally, the management of your Investment property is not simply the collecting of rents but a more comprehensive set of activities that require the attention of someone dedicated full time. The staff at ATTACHÉ - TMS believes that we have the team, the experience and the infrastructure to carry out these activities in the best possible manner.
The management of an investment property involves many administrative details, such as notifying appropriate utilities, maintenance companies, and other service providers, including your mortgage company and insurance company. ATTACHÉ - TMS will provide you with notification forms which you will complete and then ATTACHÉ - TMS will notify the various service agencies of your instructing them that future payments and contracts will be from either ATTACHÉ - TMS or the tenant, as the case may be. For example, utilities and services such as electricity, heating, water, telephone, and cable TV are usage-related services that the tenant would normally be expected to pay. Municipal taxes, insurance premiums, service contracts on furnaces, appliances and so on, are the responsibility of the landlord. Such things as lawn service/chemical treatment, pool opening and closing, and chimney cleaning would be considered maintenance of the property itself and, therefore, are normally paid for by you as the landlord. Specifying all of the service requirements that you currently have for your property is important to give us an idea of the type of tenant, which we would like to occupy your investment property.
Renting your investment property entails a range of landlord responsibilities and conditions of which you should be aware; and which ATTACHÉ - TMS will manage and address in your best interest. Some examples are:
- 01 The possibility of experiencing a vacancy period during which time no rental income is being generated.
- 02 Maintaining your investment property with professional assistance when required.
- 03 The need of authorization on how to proceed in the event that special repairs are required at a cost which is above a pre-arranged dollar limit, or if insurance claims, rental delinquencies, or eviction proceedings need to be undertaken.
Some of the things which we do for you:
ATTACHÉ - TMS will counsel you with regard to the options that you have available as a landlord in setting reasonable requirements for any tenancy, such as:
Renting unfurnished versus furnished: ATTACHÉ - TMS recommends renting unfurnished, since the wear and tear on your furniture cannot be recovered through the rents received, the increased rent for a furnished property over a non-furnished property being marginal. Tenants with few exceptions have their own furniture.
Renting to Tenants with pets. As a general response it is preferable not to rent to tenants who have pets. However, on a few rare occasions if the pet is a small animal and sufficient research indicates that the tenant is a responsible person, we have considered pets.
Renting to non-smokers versus smokers. ATTACHÉ - TMS recommends that if you currently reside in a non-smoking household you may wish to preserve this environment by stipulating that the tenants must acknowledge this fact. With cannabis now being legal ATTACHÉ – TMS recommends placing a clause in the lease prohibiting smoking of vaping any substance within the premises period. We also recommend a clause to prohibit the cultivation of cannabis within the premises as well.
We will visit the investment property in order to evaluate the physical condition of the property to recommend changes which may have to be made in preparation for renting, and to identify any conditions which may require attention.
The purpose of the Market Analysis is to protect your interests by highlighting at an early date those conditions in and around your investment property which may be significant enough to possibly cause damage to your property or cause injury to a tenant or visitor and to maximize the amount of rent collected. As an example, a water heater that may be ready to rupture, electrical wiring which could be exposed to water or which has been frayed by contact with moving parts. ATTACHÉ - TMS feels that such problems should be corrected prior to your property being advertised for rent. We will also point out those areas which may require either complete painting or simply touching up to increase the ability to rent the property.
Before any efforts are made to advertise and lease your Investment property to a qualified tenant, a reference point must first be established as to your investment property’s comparative rental value in the current market. An ATTACHÉ - TMS representative who is knowledgeable about local market conditions will perform a Rental Analysis, which will compare your investment property with recent rentals, and where warranted, competing listings. The approach taken with the Rental Analysis is quite similar to the appraisal process used to estimate a likely sales price on an investment property so that appropriate marketing decisions can be made.
Using the Rental Analysis to establish a target range for the rent, a Marketing Strategy is developed to attempt to achieve this rent in as short a time frame as reasonably possible. We will ensure that you are a participant in the development of his strategy.
Advertising and market techniques to be considered include sign posting and internet advertising.
ATTACHÉ - TMS will also maximize your property’s exposure by utilizing our own local contact network for developing the best leads.
ATTACHÉ - TMS will take all reasonable steps to minimize your worries and place the right tenant into your property. Each applicant will be thoroughly screened as follows:
- Verification of Employment; current and previous employers will be contacted in order to verify the tenant applicant’s stability and ability to pay the rent.
- Verification of previous residence; current and previous landlords will be contacted in order to verify the tenant applicant’s history of timely rent payments and responsible care of the premises.
- Verification of credit (Equifax credit report).
After a tenant candidate has been accepted for tenancy, ATTACHÉ - TMS prepares the mandatory Ontario provincial lease agreement for the tenant’s execution. ATTACHÉ - TMS has developed addendums that may be attached to the mandatory Ontario provincial lease through years of experience in dealing with many different properties, tenants and situations. The objective of the addendums is to protect your interests within the terms of the Landlord and Tenant Act of the Ministry of Housing for the Province of Ontario. We will customize your lease addendums to your specific needs and/or requirements.
ATTACHÉ – TMS will schedule a move-in inspection with the new tenant at which time we will go through every room with the tenant taking digital photographs of the condition of the property. This will establish a baseline from the perspective of all parties the particular condition of the premises and its contents upon the beginning of the Tenancy as per the Lease.
ATTACHÉ - TMS will collect rents directly from tenants and will maintain appropriate records. The lease stipulates that rent is due and payable on the first of each month. Posting of rents and other expenses will take place before the 12th of the month followed by electronic funds transfer (EFT) to your bank account. The funds will be transferred to your designated bank and account on the 15th of each month or next business day.
As the owner of the property, you will receive operating statements when expenses are above and beyond management fee and any other set monthly expense that have been incurred. You will receive a year end statement and balance sheet for tax purposes in January of the following year. This statement provides monthly expenses, year-to-date totals and a list of all moneys being held on your behalf such as last month’s rent deposit, key deposit and others. Should you have any difficulty or questions relating to these statements, you are encouraged to contact us.
Acting as your agent and therefore the landlord of the property, ATTACHÉ - TMS has the duty to address any routine or special maintenance repairs for three reasons:
- To protect the physical well-being of your Investment property;
- To guard against harm or danger to the tenant due to a problem condition in your investment property.
- To satisfy the requirements of the Landlord and Tenant Act which states that the property must be kept in a livable state at all times.
In accomplishing required repairs, ATTACHÉ - TMS will, at your request, utilize those contractors with whom you have established a positive relationship and who are already familiar with your Investment property. In the absence of any such request ATTACHÉ - TMS will utilize its network of supplier contacts and obtain the bids from qualified suppliers before authorizing repair work, where practical. Any contractor that ATTACHÉ – TMS hires to perform maintenance or repairs at your investment property must be WSIB certified.
Should a necessary repair cost be above the authorized dollar limit of the agreement between ATTACHÉ - TMS and yourself (as per the Management Agreement), ATTACHÉ - TMS will contact you or your representative with the problem status, ATTACHÉ - TMS’s recommendation, the necessary cost estimates if available, for your approval to proceed or not.
If you are a non-resident for tax purposes an account with Canada Revenue Agency - International tax department must be set up for your income from the rental of your property. The account may either be set up by ATTACHÉ – TMS or by a local accountant. Tax must be remitted on a monthly basis from the rental income.
At the conclusion of a lease prior to the move-in of a new tenant, ATTACHÉ - TMS will arrange the inspection of the unit following the vacating and cleaning of the property by the current tenant. At this time we will accompany the tenant throughout the unit to confirm its condition in relation to the Condition of Premises report made at the time of original occupation.
Before ATTACHÉ - TMS can formally proceed with the process of leasing your Investment property, we will need to have an agreement executed between ATTACHÉ - TMS and the legal owners of the Investment property.
The Management Agreement is designed to be consistent with most client’s requirements. Essentially, the Management Agreement empowers ATTACHÉ - TMS to act as your agent in regard to the leasing and comprehensive management of your Investment property. As your agent under the Management Agreement, ATTACHÉ - TMS can perform the following activities on your behalf;
- Order “FOR RENT” signage for the property
- Advertise the property for rent
- Screen potential tenants
- Negotiate, prepare and execute a lease or leases.
- Arrange for the performance of routine and/or special repairs
- Collect rents
- Control disbursements
- Perform tenant Move-in and Move-out Inspections
- Issue a property condition and an accounting status report to you on a regular basis.