PEI Landlords | Renting Well

Landlord Sues Grow Op Operators For Destroying The Place!

A landlord in Calgary is suing former tenants for $105,000 after police discovered a grow-op in the rental property in 2011, which caused extensive damage to the house. David Gin and Michelle Chen were charged, but only Chen was convicted, sentenced, and ordered to pay restitution to landlord Steve Habbi.

“I came home from work and saw basically a police raid in action,” Habbi said. “People in bio suits and bullet-proof vests and guns and things like this, which was really surprising to me … How do people who seem so friendly to your face run something like that?”

Here’s a shocker. Habbi had checked the pair’s references when they first moved in and those all checked out, including Gin’s job as a tax auditor with the Canada Revenue Agency.

200 potted cannabis plants were removed from the property – each with an estimated street value of about $1250 each. If you do the math – that’s $250 grand. The couple had about 100 U.V. lamps in basement bedrooms. The system was set up so that it was being vented inside the house, which expedites the cultivation of mold.

Chen and Gin were charged with possession of a controlled substance for the purpose of trafficking, production of a controlled substance, theft of water and electricity and mischief. More than a year later, in November 2013, Chen pleaded guilty to production of a controlled substance and charges against Gin were withdrawn.

Chen was given an 18-month conditional sentence to be served in the community under strict conditions and was also ordered to pay $10,000 in restitution. When Habbi argued the damages he incurred were well above the restitution amount, he says the Crown told him to sue the couple.

The case is ongoing, and Gin and Chen have yet to file a statement of defense. Steve Habbi has some advice for other landlords, though…

“Mandate in your lease that you will be doing physical home inspections on the interior of the property,” he said. “Your only hope is to deter them from coming into your property.”

Couldn’t agree more, Steve!

6th Time’s a Charm For Deadbeat Tenants!

Susan and Chris Perret have been served with an eviction notice again — the sixth time in two years and only one day after the CBC first broke the story on these two.

Cara Falconer said she rented to the Perrets in Maple Ridge without a reference because she believed them when they told her their previous landlord had stolen their money and left town. Falconer is already out $1,500 after the cheque for April bounced.

The couple gave Falconer a $750 cash damage deposit and $400 cash for a pet damage deposit, as well as three cheques for three months’ rent for the top storey of a house at the north end of 236th Street. But the Falconers are not counting on the rent cheques clearing for the next two months. That’s probably a safe assumption.

Professional Tenants Royally Screw Multiple B.C. Landlords

CBC ran an exclusive story this morning on two highly professional tenants who are working the system in a huge way in British Columbia.

Susan and Chris Perret, have lived nearly rent-free in at least five homes over the past two years. CBC News found records going back to August 2012, when the pair were evicted from one Maple Ridge home. They affect people financially, ignore eviction orders, bounce rent checks, and prey on property owners and landlords. Most importantly – these two know the province’s landlord and tenant legislation better than most people. The only thing they know how to do better than this is moving every 3-9 months.

Amy Spencer, president of Landlord B.C., says tenants like the Perrets are exactly what her association want to warn its members about.

“Ninety-nine per cent of tenants are good, but it’s those ones that get out there, like the ones in Maple Ridge, that give tenants a bad name,” Spencer said.

Landlords who lost money to the Perrets are angry no one at B.C.’s Residential Tenancy Branch warned them about the couple’s history of evictions.

“When people go around doing it professionally time after time, I mean, somebody — there should be a place that you can check,” said landlord Noel Beaulieu, who said he was out $1,500 from the ordeal.

Kim Gouws, who evicted the Perrets last month, said she was frustrated there didn’t seem to be a way to warn the next landlord.

“Every time I’d call I’d say,’ what about the next person? They’re just going to do this to another innocent person. How can I stop that?” she said. “I couldn’t.”

Credit and background checks everyone.

Landlords Are Getting Pooched By Utility Companies

Let’s be honest. We’re all kind of getting pooched by utility companies. With that said, it’s clearly a dog’s breakfast in New Brunswick, where everyone is paying 8 times what people are paying in Ontario, for natural gas. You read that right – 8 times!

“It’s just ridiculous,” said Marilyn Bogle of her $4,300 February gas bill on a four-unit building in west Saint John. “We’ve heated this building all month and now I get this bill. Where do I get the money to pay this.”

Bogle says her building generates $3,000 a month in rent, which is inclusive of heat for her tenants. A recent bill shows she was charged $52.51 per giga joule plus tax for gas in February — which is almost certainly a Canadian record. It’s eight times more than apartment owners pay for natural gas in Ontario, and double the cost of heating with electricity.

New Brunswick’s Energy and Utilities Board was so alarmed about escalating gas prices in January that it issued a warning to consumers of likely price spikes coming in February. But nothing compels retailers to disclose what those price spikes are until customers are billed for them, after the fact.

That’s a bit nuts – but – the winds are a changin’. Enbridge recently applied to Ontario regulators to hike up natural gas rates in Canada’s most populous province by 40% – so that should even out the disparity with our comrades in New Brunswick.

Acorn Calls For Burnaby Standards Of Maintenance Bylaw

Burnaby, British Columbia renters require more protection against landlords who don’t keep their rental units safe and healthy, says ACORN Canada. The reason? Landlords are sometimes keeping their rental units is abysmal shape – affecting low income people the most. Acorn Burnaby chairwoman Monica McGovern said the provincial Residential Tenancy Branch’s lack of enforcement is very well documented, and that has driven some cities to create their own bylaws to levy fines against landlords who don’t maintain their properties.

“We want an act because the province and the residential tenancy branch doesn’t seem able to handle the issue,” McGovern said. “We want the city to take responsibility.”

Read the story at 24 Hours Vancouver here. You can also read about the issue at the Burnaby Insider here.

Ottawa Couple Face Eviction Over Autistic Son’s Wall Shaking Noise

Add this to the “difficult situation” file and try coming to a conclusion on how you feel about this one after hearing the whole story. The Ottawa Citizen reported parents Keri Oastler and John From were recently served an N5 notice by their landlord over the noise their autistic son has been making. The couple literally just moved in to the unit on a year long lease that started on October 1st.

According to the article, the formal notice came after tenants below and beside the family complained the noise was “like a 50-pound box being dropped repeatedly.” The notice said the two neighbours were disturbed by “running, jumping and screaming” between 6:30 a.m. and 9 a.m. and 4 p.m. and 9:30 p.m. — the only times that From says his son is at home and awake. As is common with N5 notices in the province of Ontario, the family has been afforded 7 days to rectify the problem.

From’s son, Logan — an 80-pound, blond, blue-eyed boy — occasionally has tantrums, though they are becoming less and less frequent, his parents say. He will sometimes “squeak” and loves to climb and jump, so much so that his parents say they’re considering acrobatics as a career path. After this whole exchange – From and Oastler no longer want to live in what they’ve described as a hostile environment and are currently considering registering a complaint with the Ontario Human Rights Commission. I can understand where they’re coming from. They just moved in to this place. Kind of difficult to feel unwelcome amidst all this.

Residents of the townhouse community on Lisgar stret were set aback a bit on the initial story about this on the 11th.

Noise complaints have to be pretty severe in order for most people to complain. A lack of concrete division between units (as is the case here) can do nothing for the dampening of transferable sound, so I can definitely appreciate where the other residents are coming from. As a parent, I can also appreciate where Oastler and From are coming from. It sounds like their son’s condition is a challenge, and situations like these have a tendency to put you on the defensive – but what do you do? The other tenants have the right to the reasonable enjoyment of their units, and the “noise” they’re complaining about sounds like it’s occurring at pretty inopportune times. Imagine sitting down to dinner or trying to get your kids down for the night, and hearing the “constant and repeated dropping of a 50 lb. box”.

I think we can all imagine being on both sides of the aisle with this one. According to the Oye Times, who also did a piece on the dilemma, the property management company was not “properly informed” of Logan’s disability by From. From claims he did in fact explain that his son has autism and would be making a little more noise than usual.

As an example of the frequent impossibility that many landlords find themselves in – had the landlord denied the application for tenancy based on the explanation of Logan’s disability, From and Oastler could have applied to the Ontario Human Right’s Commission for discrimination on the basis of disability. Now, they’re doing it anyways. This kind of thing can happen. Landlords can get raked over the coals over stuff like this – even if they do the right thing and have good intentions. To add a level of complexity to the situation – the landlord is also bound by the will of the condominium board (they pushed on the notice serving with the owner/property manager) – proving that condo landlords have it a little harder.

In the end, it sounds like it just wasn’t a good match between unit and tenant. From and Oastler are better served to be living in a single family home or a more audibly insulated unit from their neighbours. What do you think? Share an opinion here. I’d love to hear the thoughts of other landlords and tenants.

Freemen On The Land Is Not So Free After All

As reported earlier this weekend, Andreas Pirelli (a.k.a. Andreas Antonacci) was arrested and removed from Rebekah Caverhil’s duplex after a being ordered to evict the premises by the court of the Queen’s bench in Calgary. Since he didn’t leave, in the early hours of Saturday morning, the police took him into custody – not only because he didn’t leave when we was supposed to – but also because of some pesky outstanding arrest warrants in Quebec. Interesting development to say the least. You might be asking yourself what those outstanding arrest warrants were over. Well…let’s see.

Oh Hello. I'd ask you to come in...but...you know...this is an embassy. — Oh Hello. I’d ask you to come in…but…you know…this is an embassy.

The Huffington Post and Calgary Sun reported what the laundry list of accused crimes he faces in Quebec. That didn’t stop Ms. Malouf from talking to the Globe and Mail about the ordeal with the world’s best tenant.

In 2007 – Pirelli (Antonacci) moved into a unit that Ms. Malouf owned under the guise of “housesitting” for a friend. Ms. Malouf took pity on him, and allowed him to stay with the understanding that he’d be paying the rent. Sure enough – as the housesitting arrangement came to a close, Antonacci declared that residence an embassy and proceeded to tell Ms. Malouf that she had no rights and was incapable of removing him from the unit. In other words – he did this exact thing to this poor lady. One small detail to note though – at some point during this heated exchange between Malouf and Pirelli/Antonacci – he allegedly threw her down a flight of stairs, breaking her pelvis, arm, leg, and ankle. Antonacci, who had pleaded not guilty, stopped showing up during his 2010 trial and a warrant was issued for his arrest. As such – there was never an opportunity to rule on Ms. Malouf’s allegations. Considering Ms. Caverhill’s ordeal has been brewing for 2 years like a bad craft beer, it’s safe to assume the reason Antonacci never showed up for his court dates was because he changed his name to “Pirelli” and skidaddled to Calgary (cue the Benny Hill music).

Lawyer Guillaume Langlois, a Montreal defence attorney, confirmed he’s still the lawyer in a pending file involving Mr. Antonacci, but he said he hasn’t spoken to his client since he stopped going to court.

“I’m still in the file, but he’s under a warrant, I think,” Mr. Langlois said Wednesday. “It’s been a long time since I’ve spoken to him.”

Well…let’s hope they get acquainted again.

Alberta Freeman On The Land Makes Life Difficult For Alberta Pensioner Landlord

Every landlord needs to be made aware of this situation. I read this piece in the Huffington Post today, and it made me quite angry. It ups the game in professional tenancy and redefines people taking advantage of other people for their own benefit.

Rebekah Caverhill is an Alberta landlord. She owns a duplex in Calgary’s Parkdale neighbourhood. She rented half of said duplex out to a guy named Andreas Pirelli back in 2011. The new tenant – a self described handyman – agreed to spruce the property up in exchange for 3 months of rent. When Caverhill came to inspect the work, she found that the kitchen and bathroom had been gutted and that the floors had been painted black. Pirelli declared the unit an “embassy” and identified himself as a freemen on the land. I’ll explain what this is…

Freemen on the land is a North American movement of “sovereign” citizens who basically believe that all statute law is contractual in nature. They further believe that law only governs them if they choose or consent to be governed. By implication, they believe that, by not consenting, they can hold themselves independent of government jurisdiction.

According to the B.C. Law Society and the FBI (who list the sovereign citizen movement as a domestic terror threat) Freemen may number up to 30,000 in Canada and hundreds of thousands in the United States. They believe they can avoid taxes, mortgages, utility bills and more. They state that they have an unfettered right to travel (hence their belief that they do not need driver’s licences, licence plates or insurance). They believe that government-issued identification is somehow different from the “natural person.” They commonly list their names in the format of “First:Last” (using a colon in between). They are loosely affiliated with Canadian “detaxers,” whose tenet is that income taxes do not have to be paid to the government.

In other words – they believe they can essentially do whatever it is they want and that laws don’t apply to them.

Back to Caverhill. Pirelli (also known as Mario Antonacci) changed the locks on the place, and informed Caverhill he was willing to pay $775 a month instead of the $1500 plus utilities they agreed on. To make matters worse, his company – CPC Universal Group – billed Caverhill $26,000 for the work. Caverhill also received a notice from the Land Titles Office and discovered the property had been liened for $17,000. Pirelli’s Linked In profile lists him as a supervisor/coordinator/estimator with CPC Universal Group AND a diplomatic minister with Sovran Nations Assembly – which has a website that looks as if it was designed in 1991. This guy must have a busy day.

As to be expected, when Caverhill – a pensioner who relies on the rental income – got police involved, they indicated to her that this was a civil matter, and that she needed to pursue this with the Alberta LTB.

Thoughts? Comments? Questions? As landlords, we all know professional renters exist, and they cost small landlords millions of dollars every year. Saying this is an interesting situation may be the world’s biggest understatement.

Use A Move In Inspection Report, Already. Geez.

Caught this hot piece on the Globe and Mail today. A little ditty called “How To Steer Clear Of Bad Tenants”. In it – the move in inspection report is cited as the second most important document between the landlord and his/her tenant, besides the actual lease. Here’s the kicker. Most landlords don’t use one.

This is interesting. When you rent a car they use one. When you rent a boat they use one. Hell…I remember renting movies at Blockbuster and getting a call about the DVD copy of State of Grace I rented once looking like it had been dropped when they opened the case. Some people think they’re experts at “reading” other people. They convince themselves out of the necessity to cover all the bases. They don’t check credit scores. They don’t call previous landlord references. They just assume that since the new tenant they just rented a unit to is employed and capable of paying the rent, the likelihood of a kegger is minimal or non-existent.

I’ll cut to the chase. You should always use one. It’s the basis of an understanding – one that is paired with a mutual acknowledgement between you and the individual(s) renting from you, that what you are providing is in a certain condition prior to move in, and that it is meant to be returned to you in a certain condition. It’s as simple as that. Using a move in inspection report has the potential to save you money, clear up any excuse of miscommunication, and covers you in the event of something going south.

In British Columbia, a Condition Inspection Report is required by provincial law. The tenant and the landlord need to complete, sign, and date the form to show the condition of the residential premises at the beginning and end of the rental agreement. B.C. is smart about this, especially with such a great concentration of renters. Think about it – one of the biggest sources of conflict between landlord and tenant is often condition of apartments. A mutually acknowledged and signed off report greatly reduces the number of hearings that go to the LTB. The Northwest Territories, Alberta, and Nunavut also require signed and mutually acknowledged inspection reports to be completed.

It’s not the law in other provinces, however, they’re still highly recommended and it doesn’t mean you can’t use them. The CMHC put together a handy little rundown of what you should look for and point out when doing an inspection. Here’s a taste.

Walls and ceilings: note any dents, holes, or cracks in the plaster; scuff marks that don’t rub off; tears, bubbles, or peeling wallpaper.
Floors: note stains or discolouration in carpets; tears in linoleum; cracked or chipped tiles; dents, scuffs, or stains on hardwood floors. Carpet cleaning laguna hills can get rid of any stains on carpets.
Trim (including moldings, door and window sills and door and window frames): note stains, cracks, leaks or other problems.
Electrical outlets and lights: make sure they function.
Bathroom(s): make sure all faucets (hot and cold) work without leaking; water runs clear, not brown or yellow; water carries sufficient pressure in the shower and toilet; hot water tank holds enough for your needs. Check for chips or scratches in fixtures and tiles; walls around the tub for “sponginess”; countertops for dents, scratches, or stains.
Kitchen: make sure all faucets (hot and cold) work without leaking; water runs clear, not brown or yellow; all appliances work and are clean. Check for chips or scratches in fixtures and tiles; countertops for dents, scratches, or stains.
Exterior roof and gutters: check for a reliable seamless gutter company such as seamless gutter company in Wilkesboro to ensure optimal water drainage and protection for your home. If you need roofing repairs, then make sure to contact your local roofing company for a quick fix. Colorbond roofers in Brisbane provide durable, stylish roofing options.
Deck, balcony or patio, if applicable: check for chipped stone, warped or cracked boards, or problems with exterior siding.

Smart indeed. You can see the full list here.

The End Of A Basement Apartment Renovation

Well….it’s done. 3 months, $33,000 later, and about 700 views on this video – the basement apartment from hell has been transformed. Check out the gallery of before – midway – and after images I’ve included here. You can also reference the previous posts here, here, and here about the whole process.

The budget doubled – namely because of some essential items that needed attention. Things like surprises that were found behind drywall (critical masonry and waterproofing that was needed), a required visit from a structural engineer, and a complete rewiring (including the removal of a fair amount of knob and tube electrical). In an effort to create an accurate characterization of this project, these things increased the budget on what was more in line of a common spruce up, and don’t reflect the requirement of any other unit except mine.

The place was a complete mess before – so I’m viewing this as a key investment bringing a unit up to operational cruise control for a while. Considering I was getting $450 a month for an apartment that was technically suppressing the value of the house considerably (something the appraiser told me prior to buying the building), and which was renting for below market average for the area, the fact that this renovation cost more than I was anticipating doesn’t really bother me.

Given the initial state of disarray, viewing the renovation as a strategic investment is a wise approach, especially when considering the long-term benefits it can bring. Opting for high-end interior design services during the renovation, provided by experts like www.9onmain.com interior design, can add significant value to your property. By investing in top-notch design solutions, you not only elevate the aesthetics of your unit but also enhance its functionality and appeal. The expertise of professionals from 9 on Main interior design can transform your space into a luxurious and inviting environment, maximizing its potential and making it a desirable option for potential tenants or buyers. In the realm of real estate, such investments not only justify the renovation costs but also ensure that your property stands out in the market, ultimately leading to higher returns and increased property value over time. Here’s a quick recap of what was done.

A complete down to the studs renovation. The removal of all drywall, insulation, and carpeting.
The reconstruction and masonry work on interior stone walls (former outside foundation walls prior to an addition in 1981).
The addition of an I-beam support for the ceiling.
Masonry work on outside entrance.
Interior stone wall masonry repair and parging
The replacement of water pipes running through the unit to the boiler, which increased the amount of natural light into the unit (they ran across windows).
The reconstruction of a full kitchen and bathroom.
The complete re-wiring of the entire unit – including the removal of knob and tube electrical and the addition of 18 insulated 20 year L.E.D. pot lights. Estimated energy savings vs. prior to the renovation on electrical consumption with these along is about 10%.
The removal of old baseboard heaters and the addition of highly efficient Dimplex electrical convection heaters with wall mounted thermostats. An estimated energy savings of about 20% vs. prior to renovation.
New appliances
Custom kitchen cabinetry and counter top courtesy of the good folks at Ottawa Cabinet Co. This ended up being 10% cheaper than buying pre-assembled cabinetry and a counter from Home Depot AND they were able to fabricate exactly to a measured space.
140 square feet of solid tile courtesy of the folks at Vesta Marble and Granite. The tile was used for a half wall set up in the bathroom, floors, a shower stall, and the kitchen.
Full re-plumbing, including the pin back of major drain pipes in the bathroom that impeded access to the shower and which the previous owner questionably built around.
New toilet, basin, kitchen sinks, taps, faucets, etc are installed with the help of this plumber
Creation of badly needed closet space
Painting
New carpet and appropriate under pad for a cement floor.

For the plumbing, we had to hire plumbers since everything had to be redone, and understanding the purpose of a sump pump was crucial in ensuring that all aspects of the home’s water management system were properly addressed. A sump pump helps prevent water damage by redirecting excess water away from the home’s foundation, which is essential for maintaining a dry and secure living environment. And to make the space a comfortable space to hang around in, installing an HVAC system is highly recommended. Additionally, considering the climate, engaging an ontario ac repair service would ensure the system functions optimally, providing consistent comfort year-round. Furthermore, an annual furnace repair service must be scheduled to keep your hvac system efficient. If you’re looking for ac repair honolulu services, you may contact local hvac companies. Visit sites like https://rapidrepairs247.com/ for additional guidance.

I was getting $450 a month. I’m aiming for $749 a month now, and just put up the listing. Couple of interesting things post renovation. The unit was originally a badly laid out 1 bedroom apartment. After doing all the work, and actually adding about 15 square feet to the place, I decided it was a better bachelor/studio unit, and I’m going to market it as such. Technically – the definition of a 1 bedroom apartment includes a separate and distinct living and bedroom area. In most cases, it also includes a door separating the bedroom. I feel a lot better about having a good sized and nicely put together bachelor unit than I did about a badly laid out and dingy 1 bedroom basement.

Looking at this as a long term exercise – and taking into account the increase in rent this will yield versus what I was getting before – without putting this down on paper – it will take me about 9 years to recoup the investment I made. This doesn’t take into account rent increases over that time or tenant turnover and a new set rent price. It also doesn’t take into account the value that’s been added to building (according to the appraiser I spoke with, it’s around $45,000). Lastly – it doesn’t take into account the reduction in operating attention I need to apply to the unit. All this to say, I’ve decided not to blow a gasket about how much this cost. From an operating perspective – I have a basement apartment that’s easier to market and rent now, and I’ll be earning an extra $3600 a year.

There’s a lesson I learned from this whole process. It’s essential to look at this as a long term thing. If you’re doing this – you might be inclined to finish it as quickly as possible, panic about budget, and neglect paying attention to details. You might also be inclined to jack up the rent unreasonably (especially after having not earned any money from the unit while you were doing the work) without doing some research on the rental market and taking into account the vacancy rate. Ottawa, a historically stable rental market and one of the best cities to be a landlord in – has experienced a significant increase in the vacancy rate. There’s way more selection. There’s also been a noticeable increase in landlords publishing astronomical and unrealistic rents post renovation to units. I don’t agree with this philosophy. Charging $1200 a month for a basement bachelor unit isn’t reasonable – even if you’ve spent $50,000 on fixing it up. You’ll just end up reducing the rent and getting desperate as you sit on a newly fixed up place in your search for a tenant – especially if it falls outside of the best times to rent an apartment. If I were to summarize the whole experience up – I’d give this advice…

Plan everything out before you start. Invest in drawings if you think it’s necessary. Have a clear understanding of what you want to do, what’s reasonable to do, and work towards a concise and air tight plan of action while simultaneously ensuring any essential and glaring things are accounted for and addressed to make it an appropriate environment for a tenant.
Hire good contractors just like these Trusted Vancouver plumbing professionals and make sure the work is done properly and to code. Don’t skimp. It will only end up costing you more money.
Assume there will be a 15% increase in your estimated budget. This helps with setting expectations and not panicking.
Consider items that add long term value to the building and incorporate them into the project if it’s reasonable and makes sense.
Mentally prepare yourself for surprises and avoid a panic. This includes a clear understanding that you’ll be working in a monetary negative – i.e. you won’t be earning money from the unit while also spending money on it.
Don’t overkill it. Know your space. Adding marble floors and stainless steel appliances might look nice, but it’s a rental. Those kinds of things might make sense if you’re renting out a premium spot with a premium rent. For most of us though – this isn’t the case.
Set a date and understand there are optimum times through the course of a year to rent a unit. Doing a major renovation and having it wrap up smack in the middle of January isn’t doing you any favours. There are considerably fewer people looking to rent an apartment in the middle of the winter. Plan the job at a time when it will end at least 30 days out from the best time to find a tenant.

***Last little update. Today – August 31st, 2013 – the day I published this post, I had 7 showings and ended up renting the unit to a new tenant at about 4:30 in the afternoon.

Have you renovated a unit from top to bottom? Worked on a basement apartment? Share you stories with us. How did it go for you?