Canadian Landlords | Renting Well

Why Landlords Need To Change Their Perspective On Energy Efficiency

Came across this great piece about two Chicago landlords who decided that energy efficiency was going to be a central focus on their investment. Sandeep Sood and his wife own Chicago’s Jeffery Parkway Apartments, a 55 unit, 7 story building. They acquired the South Side building four years ago. They explain how the building was in bad shape, and one of the first orders of business upon purchase was the replacement of the building’s boiler.

“The first year we got this, we were able to retrofit a new stainless steel boiler. A little different design than your typical boiler. But we were able to increase our efficiencies by more than 60 percent with just this one measure,” says Sood. This and other efficiency upgrades cost about $110,000. Sood claims his total pay back on this investment occurred in about 2 years. Pretty impressive. In most cases, payback on efficiency investments like this occur in about 5-7 years. The Sood family’s units are all inclusive – in that they are paying the utility costs on rented units, but don’t assume that’s the only reason a landlord would do this. The piece goes on to mention a bit of a difference between older and younger landlords when it comes to stuff like this, and emphasizes the need for perspective with respect to investments in energy efficiency – even if your tenants are paying their own utilities.

Investing in energy-efficient upgrades, such as the replacement of outdated boilers with modern, high-efficiency models like the Vaillant ecoTEC Plus, can yield significant returns for landlords like Sandeep Sood and his wife. Beyond the immediate financial gains, these upgrades also contribute to sustainability efforts and enhance the overall quality of the property. The decision to opt for a stainless steel boiler with a unique design demonstrates a forward-thinking approach to property management, reflecting a commitment to both cost-effectiveness and environmental responsibility.

Daniel Olson, the Senior Energy Efficiency Planner with the Chicago Metropolitan Agency for Planning has a supporting consideration when it comes to putting money down on energy efficiencies and consumption with rental units. Even if you aren’t covering the utility costs.

“When you have happy tenants who have lower bills. They are going to lower your vacancy rates, so that you actually keep your buildings full with tenants which will increase the funds you have available,” Olson said. This is true. Keeping tenants in a unit can be less expensive than turning a unit over year over year. The agency mapped out a regional plan that identifies energy efficiency as one of the easier measures that can move the area toward sustainability. Things like upgrades to a high efficiency hot water heaters, insulating buildings and simply changing light bulbs to compact fluorescent lights and L.E.D.s.

But it’s not all on landlords either…sometimes tenants don’t care.

The conflict between landlords and tenants stemming from “split incentives” to install upgrades has been identified as one of the top barriers to capturing energy savings in commercially leased buildings, according to an indicator survey published by the Institute for Building Efficiency in 2012. The same thing applies to small residential landlords too. What’s a “split incentive” you might ask? It’s when tenants often pay the energy costs, leaving the owners with no interest in efficiency. Or conversely, if landlords pay the energy bills, the tenants have no incentive to conserve energy.

British Columbia has focused on this issue of split incentives. They started up something called the Green Landlords Project, and they published a compelling executive report on it. Check it out here.

What’s your take on energy efficiency? Have you made investments into your rental property with respect to it? Share with us!

It’s Time To Give Secondary Suite Landlords A Break

Landlords aren’t just people who own multi families and apartment buildings. Secondary suite landlords are numerous in Canada and the United States, and it’s on the rise.

I’m going to give a bit of definition to what constitutes a secondary suite, courtesy of our good friends at the CMHC.

The term “secondary suite” is generally used to describe a self-contained dwelling unit with its own kitchen and bathroom, which is separate from the principal dwelling in a house. It can be located either within the principal dwelling or in an accessory building on the same lot as the principal dwelling. These units are also known as “accessory apartments” and “in-law suites.

Here’s an interesting metropolitan Canadian fact. Conservatively, more than 1 quarter of British Columbia residents rent out a secondary suite to help with the mortgage. That’s a lot of people. 52% of Vancouver’s residents are renters. That’s also a lot of people. I think it’d be safe to assume these numbers are so high, because buying real estate out west is incredibly expensive. That’s a bit of an understatement.

Secondary suites are great. They provide a variety of benefits to neighbourhoods and communities. They’re also a significant source of affordable housing in serviced areas, and make better use of the existing infrastructure. They don’t change the character of neighbourhoods much and they diversify the housing types available. They also increase the number of residents living in an area, which in turn makes neighbourhood transit more viable and enhances commercial activity. Finally, they provide owners with income and increase property tax revenues for municipalities. That’s a whole bunch of double rainbows right there.

Secondary suites aren’t just popular in Vancouver and greater B.C. They’re big in Calgary too. The city has a 1.3% vacancy rate. That’s great news for landlords, but that’s pretty tight for people looking for a place to call home. To boot – mortgage rules changed in July of last year, making it a little more difficult to buy a home. As a result, Calgary is in the process of embracing secondary suites, much like the rest of western Canada, and is attempting to lax rules with respect to them as recently as before the beginning of 2013. Mayor Naheed Nenshi has been advocating easing restrictions on secondary suites for a while. One problem. Calgary’s city council doesn’t get it. Calgary’s already tight rental market is speculated to only get tighter after the flood that swept through the city. This is slated to be a key issue in the upcoming Calgary municipal election.

Secondary suites require a few things to conform legally. It’d be a lie to say that they’re all legal. They’re not. The point I’m trying to make is that the municipal laws that determine whether a suite is legal or not should be relaxed. Mayor Nenshi and several councillors have taken the position that existing suites across the city should be grandfathered in to be legally zoned suites, provided they comply with proper building and fire codes. Compliance with common sense rules like this is a given, of course.

The opposition on council have taken a not-in-my-backyard stance. They prefer the practice of having illegal suites reported by neighbours, and inspectors/by-law enforcement officers dispatched to investigate, and possibly enforce compliance with zoning and building/fire codes. Those in this camp appear to prefer want the to city focus additional resources to the inspection and enforcement of illegal suites in order to ensure the safety of Calgarians. That sounds like a relatively logical position, but in Calgary, legal secondary suites are tough to create because the province’s building code treats suites as duplexes or semi-detached dwellings with mandated separate heating and water tanks, restrictive square footage counts, among other difficult to meet regulations. To put this into perspective, according to a piece in the Calgary Herald in May of 2009, the city had shut down 2,104 “illegal” secondary suites because of bylaw non-compliance — not safety codes of any sort — since 2004. That amounts to the closure of 1 non compliant secondary suite a day. Seems a bit empirical to me.

What do you think? Are you a secondary suite landlord? Do you live in Calgary? Vancouver? Any other city that’s transitioning on the issue? Share your thoughts with us!

The Continuing Saga Of A Basement Apartment Renovation

So the continuing saga of my basement apartment renovation moves forth. I say continuing saga because it feels like a journey to Mordor. Since my last post about this, I’ve managed to get a lot done. The walls were all covered up, mudded, sanded, and painted with what I think is a wonderful eggshell colour I picked up at Benjamin Moore paints (2026-70 for all the paint nerds). I fell in love with this colour after having Simon Says Painting pros use it in my kitchen at home, and since I feel a bright but neutral colour is essential for a basement apartment, I figured this was a logical choice. I think it looks good, but it also plays off the natural light in the unit.

Another recent element of this renovation was insulation. This was something important that I wanted to address, as prior to the work being done and when the old tenant was in there, I noticed a significant transmission of sound between the main floor and the basement unit. I took a cue from Scott McGillvray on this one and used Roxul Safe’n’Sound insulation. After putting the drywall up, and packing the ceilings with the stuff (hence the necessity to use insulated pot lights), it’s as quiet as a library. For more great house renovation ideas to beautify your living space, you can visit a site Archute for more helpful info! If you want to use the basement as a bedroom for a family member who has a medical condition, one of the first things you need to consider is a comfortable bed. You may shop here to find the a suitable bed for them.

The big main thing that was finished in the last couple of days was the completion of the wiring and the installation of some high efficiency electric convection heater systems by Dimplex and coupled wall mounted thermostats (3 to be exact). I didn’t want to go the regular route with electric baseboard heaters and am big on efficiency, especially if it’s electric, and especially if tenants are shouldering the hydro cost (which they are in this case). There’s a total of 4500 watts of heat in the unit, which is more than comfortable. A furnace maintenance service can be availed when repair is needed. The insulated pot lights were finished and all 18 of them use LED bulbs which are meant to last for 20 years. Considering we just had air conditioner spring check up and the unit was also completely rewired, I’m curious to see how energy efficient the apartment is going to be.

What’s on Deck:

Property Management Software — Another shot of said bedroom

I’m doing a black and white tile kitchen and entrance, coupled with a contrasting darker colour for the bedroom carpet. Both the tile and the carpet have been ordered. I also have to buy some appliances, and get some kitchen cupboards and a counter top. I’m thinking of hitting up Restore from Habitat for Humanity for some of the last essentials. Beyond that, it’s taps, a bathroom basin and vanity, shower heads and handles, and a low flow toilet. I’m figuring I’ll have the place finished in the next two weeks.

Have you renovated a basement apartment? Challenges? Hurdles? What were some of your experiences? Share your story with us!

Vacancy Rate Hits 7.8% in Prince Edward Island

Came across this interesting piece this morning. The vacancy rate in Prince Edward Island’s urban centers hit 7.8%. According to the CMHC, this is a 3% increase versus last year. The number of vacant rental units in Charlottetown (the province’s capital) jumped to 8.7 per cent in April, which isa 5% increase in the same month last year. The CMHC cited the developments of new units as the biggest factor in the increase. No kidding.

The country’s a bit all over the place in parts when it comes to vacancy rates. Ottawa’s vacancy rate has increased. Hotbed Calgary has seen a significant decrease. Overall, Canada’s vacancy rate has seen a slight increase according to the CMHC.

Landlords, Tenants, and Floods. This Is For You Alberta.

Came across this great piece at Law Now, that touches on the mess that Alberta’s floods have wreaked on both landlords and tenants in the province. The Centre for Public Legal Education Alberta has developed an info sheet to help people – both landlords and tenants-to understand their rights and responsibilities after the terrible flood.

There are a lot of great “pro tips” here, but one thing in particular jumped out at me when reading the fact sheet. The definition of a “frustrated tenancy”. According to the CPLEA, it’s as follows:

A rental agreement can be frustrated, which occurs when something happens that is out of the control of both parties, and makes continuing with the agreement impossible. There are many reasons why a tenancy can be frustrated including if the property is destroyed, if there is an order under the Public Health Act that says the property is unfit for human habitation, if the property is so damaged that a reasonable landlord would not fix the damage, or if it is so damaged that a reasonable tenant would not be willing to remain living there.

Check out the fact sheet here. It’s great.

Basement Unit Renovation 2: This Time We Mean Business

Construction on the basement apartment is continuing. In my first post on the project, I discussed some of the obstacles I was facing as I transformed a dank and crappy basement unit into something someone will be proud to live in. Well, since then, there’s been a significant amount of progress with reliable concrete services from a good place like brothersconstructionwi.com/our-services/ contributing to sturdy, quality flooring solutions and other structural enhancements. Insulated pot lights are in. Framing is complete. Sound proof insulation is in. Only High-Quality Insulation Materials Used for this renovation. The entire unit was re-wired, and I brought it up to code. Part of bringing the electrical up to code included replacing the breaker panel with a new one, and completely eliminating all of the knob and tube electrical that was in the place. Then with this kind of construction, an important aspect to consider is the method of material procurement. By using https://cartersconcrete.co.uk/mix-on-site-concrete-delivery-how-it-works/, builders can significantly reduce the carbon footprint associated with transporting concrete. This method cuts down on the emissions from multiple trips to and from a concrete plant, showcasing a more eco-friendly approach to construction.

For those embarking on similar endeavors, it’s crucial to consider the method of material procurement, emphasizing quality over cost-cutting measures. Exploring options for custom home builds and home renovation services near me proved beneficial, allowing me to access a diverse range of materials tailored to meet specific project requirements. This strategic approach not only elevated the overall quality of the renovation but also served as a testament to the commitment to excellence in every aspect of the construction process.

Are you wondering how to transform your basement from a cluttered mess into a functional and appealing space? Ground Scapes does basement waterproofing Greensboro, NC.

So – all this to say, this past couple of weeks was about the bathroom.

Bathrooms are important. Seriously.

The old bathroom sucked. It was like a bathroom in a plane. After literally taking the entire place down to the beams, I framed a proper stand up shower stall that was a perfect square, versus the angled and uncomfortable one that was there before. I opened up the bathroom significantly by having a plumber pin some elaborate pipe work against an interior wall, creating a bigger space to have a bathroom. Check out the picture to the right here. This is a glimpse of what it used to look like. I didn’t even want to take a full photos of the catastrophe.

What’s up next? Well – drywalling is continuing into this week. Tile work is being done by Limitless Renovations in the bathroom next week, and I’m going to be purchasing some appliances in the next couple of weeks for the kitchen. All in all, on schedule. I’m planning on having the place available for rent for September 1st.

Ottawa’s Vacancy Rate Has Almost Doubled Since Last Year

Landlords in the national capital region – take notice! Ottawa’s vacancy rate has almost doubled since last year according to this piece by the CBC.

John Dickie, chair of the Eastern Ontario Landlord Organization, estimates there are roughly 4,000 empty or soon-to-be empty apartment units in the capital. Last April, the vacancy rate was reported to be 2.1%. This year – it’s 3.7%. That’s a pretty sharp increase. To top that off, the Ontario LTB announced yesterday that the allowable provincial rent increase for 2014 will only be 0.8%. You can get the lowdown on the guideline from the Ministry of Municipal Affairs and Housing website. This is the lowest rent increase since 1975.

In an effort to paint a fair view of the situation, here’s some interesting stats to chew on, courtesy of the Ministry’s site:

The average rent increase guideline from 2004 to 2013 was 2.1 per cent. The average rent increase guideline from 1993 to 2003 was 3.1 per cent.
The guideline is calculated under the Residential Tenancies Act, 2006, which came into force on Jan. 31, 2007. The calculation is based on the Ontario Consumer Price Index, a measure of inflation that is calculated by Statistics Canada.

The province has committed itself to making a push for affordable housing for Ontario tenants, amid what The Toronto Star reported as a crisis across the province, 4 days ago.

Here’s the kicker with all of this – the rental market vacancy rate is calculated by looking at apartments in buildings that are three units or larger, and does not include condos or homes for rent. Uncertainty in the national capital region’s public service job market is speculated to be lending itself to the rise in the rate. Some analysts also suggest the increase of condo rentals could be contributing to the high vacancy rate as well, as condo units compete with traditional apartments. Kind of hard to dispute this if you ask me. Condo landlords are offering tenants pretty nice amenities and brand new units. This is all kind of upping the game for landlords who enjoyed minimal efforts with marketing centrally located units that kind of leased themselves.

What do you think? Share your comments and thoughts.

Absolutely Insane Landlords from California Get Jail Time

Came across this compelling story from the ole’ Sunshine state of California.

Kip Macy and his wife, Nicole Macy, pleaded guilty to two felony counts of residential burglary, one felony count of stalking and one felony count of attempted grand theft. These two geniuses owned an apartment building in the gentrifying South of Market area of San Francisco. Their plan was to evict the tenants they had to renovate the apartments and then to sell them as individual units.

Nicole Macy sent fraudulent emails to the attorney of one of their tenants with whom they were involved in a civil case. In the emails, she pretended to be the victim and fired the victim’s lawyer. In another incident, she sent fraudulent emails to her own civil attorney in which she pretended to be the same victim. Then…wait for it…she threatened to “kidnap and dismember” the attorney’s children.

Together – Kip and Macy also cut the floor joists of an existing tenant’s unit in an attempt to make the floor cave in. Guess they really wanted to get rid of him or her.

Other crimes included purchasing a semi-automatic handgun and threatening to shoot the building manager, changing locks, cutting phone lines, shutting off utilities, removing a victims’ belongings from their apartment and destroying them, multiple burglaries and threatening letters to victims. All of these events took place between September 2005 to December 2007.

Here’s where it gets interesting. The couple were charged with felonies in 2008, but posted bail and escaped to Italy. They were taken into custody in Italy in May of 2012 and extradited back to the U.S. on May 17, 2013. Bail was set at $2 million for each of them. After pleading guilty to four felony counts on Tuesday, the couple are scheduled to be sentenced to four years and four months in state prison on Aug. 22.

Nuts. They need to be in jail.

This story of Kip and Nicole Macy’s criminal activities highlights the importance of the legal system and the role of bail in ensuring accountability for criminal behavior. While their actions were extreme, the process of setting bail and securing their release before their eventual flight underscores the need for trusted bail bond partners who can handle high-stakes situations.

In cases like theirs, where individuals face significant charges, bail becomes a critical part of the process, and a reliable bail bond service like A&A Bail Bonds can offer the expertise needed to navigate complex legal circumstances. Such services can assist individuals and their families in securing a fast and efficient release while ensuring they meet the necessary legal requirements for their case.

Vancouver Landlords May Lose The Right To Deny Tenants With Pets

Came across this great article by Jesse Ferreras at the Huffington Post B.C. As landlords, all of us have been faced with the question of renting to a pet owner. Denying tenancy because of a pet is often assumed by tenants to be an issue related to concerns about damage, but the truth is there’s more to it than that – on both sides of the equation.

Let’s backtrack though, and talk about what’s going on in Vancouver. As of right now, landlords in Vancouver have the right to refuse potential occupants with animals. However, councillor Tim Stevenson recently tabled a motion at city hall, which already has the support of Mayor Gregor Robertson, that would prevent landlords from discriminating against renters on the basis of whether or not they own a pet. In an effort to know and learn all of the facts, chew on these tasty bullets:

Similar legislation has been in place in Ontario for more than 10 years. Both the mayor and councillor Stevenson argue that if it can work in Canada’s most populous province, it can work in Vancouver.
50% of Vancouver households are renting. With an average home price in the 700 thousands out west, this is the reality.
Every year, more than 100 pets are surrendered to the BC SPCA because of the current rules.
Vancouver’s vacancy rate hovers slightly above 1%.
There’s a an easy to see legitimate problem with people finding housing in a city where it’s clearly too expensive for many people to buy already.

Quite the municipal challenge there. Seriously.

The BC SPCA is leading the charge in an effort to inform landlords of the benefits of renting to a pet owner. I can see both sides of the equation here, and you’re forced to consider all of the facts in the situation. As a landlord in Ontario, while I obviously don’t have a no pets policy. I’m particular about keeping on top of this with a few of my tenants who do have pets. It’s not easy.

Full disclosure. My units are closely situated from one another, and I’ve had more than my share of complaints over the years from some of my tenants about barking from the one tenant I have with a dog. I also had a previous tenant in the last 3 years whose jerk dog badly damaged a unit (they refused to accept responsibility after assuring me their schnauzer was a trained, wonderful, and quiet dog. I was forced to take them to the board and ended up winning a judgement. Then the tenant dropped off the face of the earth and I never got paid the $700 they owed me). I come across as many people when I’m in search of a new tenant who indicate they have allergies and an aversion to pet dander as I do with people who have pets. I have other tenants who have pet allergies. Juggling all of these things is not easy. All of my pet issues have been related to dogs. Never had an issue with a cat or other small animal.

The right of tenants to have pets is not unfettered in Ontario. The pets must not become a nuisance and those same pets can not interfere with the reasonable enjoyment of the premises by other tenants or the landlord. Pet owners may need to order dog weight gainer supplements from the internet to help boost their dog’s health.

There’s recourse with the LTB in the event that a pet becomes a problem. There is recourse in the event that a tenant with a pet doesn’t live up to their end of the bargain, however, any landlord knows that controlling the situation in the here and now is significantly more challenging. You have to prove damage or issue, and that’s not as easy as it sounds.

Vancouver is obviously a unique situation vs. most other cities in the country. With it’s high concentration of renters, I can appreciate where the mayor and the councilman are coming from, and their motion is noble. What do you think? Share your thoughts or comments with us. Have you ever had an issue with pets? What do you think of this motion?

10 Traits Of A Great Landlord

There are a variety of characteristics that make a leader great, or a manager great, or even a husband or a wife great. We thought we’d look at the important job of being a landlord through that same lens. Here’s a few items to chew on…

Great landlords are responsive. They respect the fact that someone is calling one of their units home, and take the job of addressing issues, concerns, and questions in a timely way, treating their tenants like customers.
Great landlords aren’t doormats. While treating their tenants like customers, they also stand firm with their expectations with respect to fundamental things – like paying the rent, being respectful of other tenants (if there are other tenants), following the rules, and taking care of a unit that a tenant is renting. When this doesn’t happen, they react appropriately and decisively and aren’t afraid of an awkward exchange or confrontation.
Great landlords know the law in their province or state with respect to residential tenancy. Knowing the law doesn’t only include being aware of rent increases. It also includes being familiar with legal dispute resolution, knowing how to do things like serve notices, and being aware of the rules for things like sublets, interest rates on security deposits or last month’s rent, and what you can and can’t do for things like pets. Know the whole law.
Great landlords are diplomatic. Resolving disputes with tenants shouldn’t be an emotionally charged exchange. They listen as much as they talk, and they know that you can catch more flies with honey than you can with vinegar.
Great landlords know that rent increases are important, when applicable. Not increasing the rent for years has an adverse affect on the property you’re managing. Expenses increase often at more than the rate of inflation. On the other side of that note – there are provinces and states that have an absence of rent control. Being a great landlord also includes not being a jerk and increasing someone’s rent by 400%, even if you technically can.
Great landlords understand the importance of always doing a good job. Even with a low vacancy rate, it’s important.
Great landlords take pride in the property they have. Being a slumlord is so 80s.
Great landlords are fair and flexible and expect the same of their tenants.
Great landlords don’t subscribe to doing things in the cheapest possible way. They approach everything from repairs and renovations to snow removal in a practical but correct and accountable way. When it comes to home improvements like bathroom renovations, working with reliable bathroom remodeling companies ensures that the job is done to the highest standards, adding both value and comfort to their properties.
Great landlords aren’t evil. They manage to be effective at managing and operating an income property, while applying common sense to situations like keeping them in good condition and pest free, for this we recommend this company as they make a great work at this. They respect people’s privacy and rights even though they have the ability to enter into a tenant’s unit. They don’t dangle the ole’ “I own this place” statement above people’s heads. They even act politely and ethically when things go south.

Thoughts? Comments? Share what you think makes a good landlord great with us!