Property Management | Renting Well

No… Tenants Can’t Just Airbnb Their Place in Quebec

It seems like you can do everything on the internet these days. Airbnb is and has been a wonderful way to make a bit of extra cash when it comes to renting out your home, cottage, or vacation property. Things can get a little dicey though, when you don’t own the property in question. In Quebec, you need to get your landlord’s approval first. The province’s rental board (Régie du logement) recently reached the decision when it ruled on a case involving a Montreal tenant who rented out his downtown condo to tourists on Airbnb.

The landlord rents the luxury one bedroom unit for $1,770 per month. After receiving numerous complaints related to transiency, smoking in hallways, and a general change of pace, the landlord determined the tenant was renting out his unit on Airbnb for more than double the rent he was paying. Landlord gets miffed. Increases the rent by $1000 a month. Tenant refuses said rent increase. Bad bing/bada boom – you’re in front of a judge.

The province handed down the landmark precedent setting decision in one fell swoop. The board ruled that tenants cannot rent out their apartment to tourists without getting the landlord’s approval first.

“The message that these lucrative sublets sends to landlords is that the value of the unit does not represent the value of the rental market,” the board concluded. “The frequency, the difficulty in verifying the identity of sub-tenants, the inherent risks … are all issues that can be raised,” the judgment read.

A cornerstone element of this decision was that the province felt that it was clear the dwelling was being rented out for commercial purposes, not residential, which is what the original lease itself was predicated on. The ruling indicated that tenants are required to get their landlord’s approval prior to doing anything on Airbnb, and that the landlord has 15 days to refuse if they don’t approve. The ruling also indicated that the landlord cannot spike rent because a tenant decides to list a unit on Airbnb, which in essence is encouragement by the province to get tenants and landlords to partake in a healthy meal of being reasonable and co-operative. All in all – tenants can’t do anything without clearing it by their landlord first. A logical ruling. Lastly – a tenant who lists their unit on a home-sharing site cannot charge more than the price of rent.

In an effort to be fair and balanced, Airbnb does provide some good tips for using their service, which include but are not limited to, maybe mentioning to your landlord that you’re sub leasing your place to strangers for an assumed profit. If you’re thinking about starting an Airbnb business on the back of your landlord, you might want to consider reading this paper by Lapointe Rosenstein Marchand Melançon.

Excellent work, Quebec! Supress the hustle.

Ontario’s Landlord & Tenant Act Has More Holes Than A Block of Swiss Cheese.

I’m pretty sick and tired of hearing the variety of gripes about landlords. Very few people like landlords and it’s easy as pie to pick on them. Too easy. As a matter of fact, I’m going to take it a notch up. I think landlords generally suffer from a grossly misinformed perception from renters and entitled people and are considered a privileged group – receiving more criticism than they generally deserve.

Sure – there are lousy landlords. Lots of them. I particularly have negative reserves of sympathy for predatory or blatantly negligent landlords who don’t care about the well being of their tenants or who ignore their professional and legal responsibilities and obligations. If you’re a George Woolsey – I think you need to go to jail.

With all of that said, Nina Willis was charged with fraud this week, and it’s about time. She – along with every other tenant who games the system for their own benefit (especially in tenant friendly provinces like Ontario) – are no different than con men. They should all be charged with fraud and we should have a public registry for people like this. Landlords, like consumers, should be protected. They deserve it.

Take Adam Buttigieg as another example. He has a gamut of fraud convictions and appearances at the Ontario LTB. The Toronto Star did a wonderful exposé on this guy last year. They revealed how tenants can delay eviction by exploiting protections offered through Ontario’s Landlord and Tenant Board, and how privacy rules keep landlords in the dark about bad tenants. It’s about time on that, too.

Nina Willis has been ordered out of at least seven properties since 2005. She’s a professional liar and fraudster. She deserves to go to jail because she knowingly and willfully lied on tenant applications and would exaggerate maintenance complaints as justification for withholding rent. Sometimes she’d even accuse landlords of discrimination or harassment. Whatever to delay the process as long as possible. Once that was done, she would effect her perfected dance of waiting for N4s, then waiting for L1’s and a hearing at the LTB, and then providing checks for the arrears amount during the mediation process, which would bounce. Stalling evictions in the province of Ontario is a relatively easy thing to do. Once she exhausted her options, she’d have already bought herself months of living rent free and would simply move onto the next landlord to do the same thing.

There are bad landlords. That’s a fact. There are also bad tenants. That’s also a fact. The most important fact in the province of Ontario is that if you’re a bad tenant, you can buy time on your landlord’s dime to pay the rent. You can use your landlord as a bank. You can live rent free for months if you really wanted to, and you can do it a number of times without getting caught. I understand the need for privacy, and believe everyone is entitled to it – but if you exploit people – you should be exposed. I’m glad Nina Willis’ is getting the justice she deserves, but it doesn’t change the fact that being a landlord in this province is a tough job and those who do it, suffer from a significant degree of financial exposure courtesy of our friends at Queen’s Park. Good legislation is airtight and adaptive when necessary. Ontario’s laws aren’t there yet, but they should be.

Questions? Comments? I’d love to hear them!

What Is Up With Mayors and Mayor Hopefuls Piping Up About Landlords?

I don’t get it. Naheed Nenshi told Calgary’s landlords to be “ethical” last week and not gouge tenants. Ok fine. Now -Toronto mayoral hopeful Olivia Chow is on the campaign trail saying she’s going to introduce stiffer measures for bum landlords who don’t maintain their properties. Some of the things that bother her are broken light fixtures, peeling paint, and bedbugs. It bothers her so much that she wants to create a city task force of sorts, that would issue display grades – much like they do for restaurants – on rental properties. Yeah because landlords in Ontario don’t have it tough enough already. Can anyone sense my sarcasm?

While negligent and reckless landlords should unreservedly be penalized and dealt with, I think it’s important to remember that Ontario (Ms. Chow is running for mayor of Toronto) is a province with legislation that is very tenant friendly. While the system isn’t perfect – it’s the one we have. Tenants have as many applications to make to the Ontario LTB as landlords do. They have remedies. The Ontario act is also very clear in terms of what landlords are required to do and what they’re required to provide. Every province – and as indicated this month on the blog, even every state – is different. Toronto, and the greater province of Ontario, does not need yet another layer of bureaucracy or a grading system.

There are bad landlords. George Woolsey comes to mind. They’re not fair, they don’t follow the law, and they have little to no concern about your well being. Flop houses and housing environments that are hazardous and not suitable for residence need to be handled. Everyone is entitled to live in a habitable and safe environment – BUT – I don’t think this warrants an election plan from a mayoral hopeful. Just like Naheed Nenshi – Olivia Chow is suggesting that something needs to be done on a municipal level about this in Toronto.

Like with most things, there is always good and bad, but it’s important to remember that there are also bad tenants. I don’t think Ms. Chow is labelling all landlords as “bad”, but I think she’s proposing something on the election stump that has the capacity to indirectly just make it harder for the majority of landlords in Ontario that are reasonable, responsible, and solid. The only good laws are the ones that are balanced and strike harmony between all of the interests in the mix. As much as I strongly dislike some of the aspects of Ontario’s act, on it’s face, it’s generally balanced. It is however the epitome of a “second, third, fourth, fifth, and sixth chance” kind of legislation and isn’t necessarily fair for landlords in many cases. It’s pretty easy to game the system and exploit a situation in the nation’s most populous province. Making money or even breaking even isn’t exactly easy here.

Mayors should be less concerned about trying to admonish landlords. That’s not their job…and there has to be an easier way to address properties not fit for habitation – if it’s in fact enough of a problem in Toronto that an elementary grading system needs to be introduced – than making our job harder than it already is.

Questions? Comments? We wanna hear ’em!

Mayor Naheed Nenshi Thinks Calgary’s Landlords Need To Take It Down A Chevron

Mayor Naheed Nenshi is a great mayor. The majority of Calgarians think so. He’s a responsive and witty guy, and clearly he’s doing something right. I’m personally quite fond of him too – especially with some of these gems on Twitter.

Last week, he propped himself up on the soapbox to talk about Calgary’s landlords (“too many landlords” to be specific), and how they’re screwing tenants and gouging them on rent. There are some alarming rent increases going on in the city. To put this into perspective, one needs to consider a few things.

In July of this year, the CMHC indicated that Calgary has one of the lowest vacancy rates of any major city in the country. That rate is 1.4 percent. The average cost of a one-bedroom apartment is just over $1,130 per month. An average two-bedroom apartment goes for just under $1,300 per month. Alberta’s provincial residential tenancies act doesn’t limit how much landlords can raise rents, but they have to give three months’ notice for monthly renters and they can only do it once per year. If you’re a tenant on a year long lease, you wouldn’t see a rent increase inside of the year of your lease. Here’s a few other facts about Calgary as well…

25,000 people a year are moving to Calgary. You heard that right. The city’s population is surging. Property taxes and utilities have also increased in the city, not to mention other municipal and residential costs for residents – both landlords and tenants.

On Friday, Mayor Nenshi clarified that his statement on rent gouging was largely based anecdotal evidence and not, in fact, a systemic problem.

“What I’m calling for is ethical business more than anything else. If you’re a landlord and your costs have gone up … then of course you pass that on to your tenant. That’s part of your business. But every day I get calls in my office from people who have been given no notice, a month’s notice, of 30, 40 per cent increases in their rent,” Nenshi added. “And nobody’s costs have gone up that much.”

Nenshi’s comments drew the ire of Gerry Baxter, executive director of the Calgary Residential Rental Association, who considered the comment an inaccurate characterization of the majority of Calgary’s landlords.

What do you think? Do you live in Calgary? Are you a tenant or landlord? Do you think it’s the city’s responsibility to provide more affordable housing? Do you think that Alberta’s Residential Tenancies Act should change to cap increases that landlords can impose? Share your thoughts with us!

Arkansas: Bad For Tenants…But Is It Good For Landlords?

The U.S. state of Arkansas was recently featured in an excellent Vice News piece on what tenants in Bill Clinton’s home pasture deal with when they rent. The piece – entitled “Arkansas” The Worst Place To Rent In America” – was a fascinating look into a place where the lack of laws regulating the rental market work backwards. As founders of a software that serves landlords – not really tenants – and as landlords ourselves, we’d be lying if we said we didn’t sympathize more with the plight of property owners renting out to tenants. As we’ve said before, it’s a thankless job most of the time. With that said, we’re also advocates of healthy and productive relationships between landlords and tenants. Relationships that are fair, follow the law in whatever province, state, or district you happen to be in, and that include methods and approaches that are reasonable and equitable.

Here’s a few key things in Arkansas. It’s the only state in the entire country that has no “implied warranty of habitability”. In english, that means landlords have no legal obligation to repair or maintain their properties – unless there was a written or oral agreement to fix something. It’s also the only state where you can be fined and jailed if you don’t pay your rent on time. Seriously. Here it is. To real estate investors – this could be perceived as an ideal place to invest your money. The existing law favours landlords heavily, and repossessing property there is fairly easy to do when tenants don’t pay rent. On the other side of the debate, a 3rd of Arkansas’ almost 3 million residents are renters, and a high percentage of those renters have serious concerns and issues with the properties they rent. Most renters are agreeing to take their units “as is”. By law – tenants are required to pay their rent no matter what – even if landlords don’t repair or maintain their buildings and units. Taking into account that Arkansas is the second poorest state in the U.S., and that 18% of the population live below the poverty line, this creates a situation where in arrears renters get swept up into the criminal justice system.

As a tenant, if you don’t pay your rent – even if your roof has holes in it and your windows are broken, not paying gives you 10 days to vacate. If you don’t – you could go to jail. Don’t bother contesting the order to vacate, because in the vast majority of cases, tenants don’t get the opportunity. The legal process for getting in front of a judge is convoluted by the black and white insistence of whether the money is owed, and if it is, for whatever reason that might be, you’re more likely to see the inside of a jail cell than a judge. The state’s unique “failure to vacate” law sees tenants charged as criminals purely on their landlords’ say-so, without any independent investigation by prosecutors. That’s why 90% of tenants who receive an order to vacate decide to just leave. It’s simply a criminal issue immediately. To boot – Arkansas is one of only 10 states that don’t prohibit retaliatory eviction. For the uninitiated – retaliatory eviction is when the landlord doesn’t like something you’ve done..like the reporting of a health or building code violation…and wants you out of the unit. So, in short – if you’re landlord doesn’t like your face, you can be evicted. If you make a complaint, you can be evicted. If your landlord simply wants you out of the unit, and you’ve been paying on time – they can rip up a good check or make themselves conveniently unavailable to accept cash from you on whatever agreed upon date, and you’d technically be evictable.

The Non-Legislative Commission on the Study of Landlord-Tenant Laws, created in 2011 by the state legislature, released a report on Dec. 31st, 2013 that recommended 15 tenant-landlord law reforms. Lynn Foster, professor at the William H. Bowen School of Law at the University of Arkansas at Little Rock and a member of the study commission, said, “If you’re on a month to month lease, maybe it says the landlord makes repairs, maybe it doesn’t — but if you report something to code, the first thing the landlord is going to do is try and evict you. That’s why it’s imperative that if we adopt a warranty of habitability, we also adopt a statute prohibiting retaliatory eviction.”

Human Rights Watch, an organization that follows rights violations worldwide, issued a report in 2013 called “Pay the Rent or Face Arrest: Abusive Impacts of Arkansas’s Draconian Evictions Law.”

This is all a far cry from some of the provinces and states that have laws that in some cases favour tenants. Good laws achieve as much of a possible balance possible between the obligations of providing habitable and functional dwelling to people paying for them while also protecting the landlord’s rights and property. The lack of this in Arkansas has police being involved with evicting people for not paying their rent – an almost ridiculous waste of that resource – and people who don’t pay their rent for whatever reason in many cases entering the criminal justice system.

What do you think? Are you an Arkansas landlord? Are you an Arkansas tenant? Share your thoughts with us.

Home Insurance Industry Kicks Montreal Landlord To The Curb After Repair

Montreal property owner Sari Buksner is in the midst of a nightmare of sorts, courtesy of her insurance company, and she’s yet to wake up from it.

Back in 2012, one of her tenants alerted her to a leak dripping from the second floor to the first. Her insurance firm saw the problem was a valve linking to her water heater on the second floor. They also proactively noticed a completely separate leak, near the toilet of her third floor. The estimate on the repair work for both claims originally came in at a little under 20K.

In moments like these, having a robust home insurance policy is pivotal. Home insurance acts as a safeguard against unexpected damages, providing a layer of protection that extends beyond the immediate costs of repairs. It becomes a vital asset in mitigating financial stress and ensuring that unforeseen circumstances don’t turn into prolonged nightmares for property owners like Buksner.

In a broader context, individuals should also consider the significance of financial planning, which extends beyond property concerns. Life insurance, for instance, offers a safety net for loved ones in the event of unexpected tragedies. It serves as a crucial component of comprehensive financial security, providing a foundation for long-term planning. Moreover, individuals might be pleasantly surprised to discover that they can Get a tax deduction on life insurance. This financial incentive adds an extra layer of appeal to life insurance, making it a strategic and potentially cost-effective tool for safeguarding one’s financial future. Just as home insurance shields against property-related nightmares, life insurance, with the added benefit of potential tax deductions, contributes to a holistic approach to financial well-being.

Amidst the challenges faced by property owners like Sari Buksner, it’s evident that unexpected issues, such as leaks, can quickly escalate into complex and costly repairs. Just as vigilance is crucial in addressing plumbing concerns, the importance of a sturdy and well-maintained roof cannot be overstated. In situations where unforeseen damages extend to the building’s structure, seeking the expertise of a local company becomes paramount. For property owners in Montreal, navigating such predicaments necessitates a reliable partner. Their commitment to timely and efficient solutions aligns seamlessly with the urgency often required in property maintenance. By entrusting the care of the roof to roofing and siding contractors, property owners can not only mitigate potential damages but also navigate the intricate landscape of insurance claims more effectively, ensuring a swift and comprehensive resolution to their property concerns.

After the meticulous process of resolving structural issues, the prospect of revitalizing your living space post-renovation can be both exciting and daunting. Just as a reliable roof safeguards a property, the decor within defines its character. While the aftermath of repairs may leave you yearning for a fresh start, the choices you make in adorning your space matter. Explore the array of possibilities at untamedcreatures.com, where a fusion of affordability and style awaits. The site not only caters to budget-friendly options but also presents an opportunity to infuse your newly renovated space with a touch of individuality. It’s a destination where the practical meets the creative, ensuring that your post-renovation decor journey is as seamless as the resolution of unexpected structural challenges.

According to the original CBC News piece, Buksner said she settled with a contractor recommended by the insurance company after the first one she found declined the job, indicating it was beyond their capabilities. Once she started with the recommended contractor from the insurance company, the work began, and unexpectedly continued for months. Some of the reasons for this included a lack of proper insulation for the new pipes, which froze, creating an even bigger issue than the initial leaks. A rip up was required, and a complete re-do of the work – as in new pipes, gyproc, drywall, painting, and Expert Liquid Rubber Roof Installations. The initial $20K that was speculated turned into a little under $87,000 in construction/renovation costs. On top of this – the insurance company paid her $58,155.00 in lost rental income while the work was taking place. The total payout to Buksner was about $145,000. Whoa.

After the work was done, her insurance company decided not to renew her policy – something that insurance companies have the right to do.

So far, she has only found a willing insurer in the substandard market, and that policy would cost her around $11,000, roughly $4,000 more than what she was last paying, per year. Adding insult to injury, she’d be required to pay the whole thing up front and wouldn’t receive water damage protection. Feeling overwhelmed, she contemplated seeking advice from a California personal injury lawyer.

Thoughts? Comments? From personal experience, water damage claims aren’t exactly a cakewalk. Here’s another kicker – water damage claims are on the rise in Canada.

Yukon’s Landlords Get A Break

Landlords in Yukon got a break recently with a decision by the government to cancel a 13 million dollar affordable rental housing program in what is already a highly crowded rental market.

Terry Bergen of the Yukon Real Estate Association says there are currently at least 4,000 rental suites in Whitehorse. In a city that has less than 28,000 people as of the 2013 census, that’s a helluva lot of rental units. Like a lot.

Check out the story on CBC here. You can also learn a bit of the backstory here.

Professional Tenants Need To Pay Or They’re Going To The Big House

Last month…we talked about Susan and Chris Perret, the notoriously terrible tenants who have been professionally squeezing a bunch of B.C. landlords.

On April 28, a judge in Port Coquitlam small claims court ordered Susan and Chris Perret to repay $6,000 to former landlord Suman Parasad by June 9, or go to jail.

Parasad was the first landlord to take the Perrets to small claims court over unpaid rent, claiming the pair racked up almost $8,000 in arrears in 2013.

Two more landlords have since contacted the CBC to say they have been the victim of the Perrets’ apparent scam. That’s a grand total of eight landlords who are now working together to fight back as a group.

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.