Property Management | Renting Well

Judge Orders Eviction For Freeman On The Land Embassy

Good news this morning. CTV reported that Andreas Pirelli has been ordered to leave Rebekah Caverhill’s duplex by a judge of the court of Queen’s bench – by this weekend. As in 12:01 a.m. Saturday morning. A representative of Pirelli’s was present in court this morning for the ruling, and then became belligerent towards the judge by refusing to give his name or approach the bench when asked. Since freemen on the land don’t feel obligated to pay taxes or abide by any rules they don’t agree with, is this all that surprising?

I have to leave by midnight on Saturday morning?

With all of this said, I don’t think this is going to be the end of this just yet. Caverhill hasn’t seen the condition of the property and hasn’t entered the unit in a while. There’s also no guarantee that Pirelli is going to leave willingly or peacefully. I really really really hope he does. Then he can go back to his full time job of getting mistaken for Andrea Bocelli.

“I guess they are going to send a bailiff out with police to make sure there’s no problem,” she said.

So…what’s the lesson here? Never have a verbal agreement on a “spruce up” in exchange for 3 months rent. Always have everything in writing. Also – do background checks on prospective tenants. Pirelli is going to have a helluva time renting another place now. Good. Time to say good bye, Andreas.

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.

Vancouver Landlord Redefines Being Amazing

When tenants hashtag #amazeballs to a picture of their landlord, they’re thinking of George Woolsey. For the uninitiated, I’ll give you a quick recap of the situation involving Vancouver’s best property owner.

George Woolsey is a former Downtown Eastside landlord who has refused to pay thousands of dollars owed to tenants, and who has been the target of a years long legal campaign against him by a B.C. law society representing said tenants. He used to own Wonder Rooms SRO (single room occupancy) and the Palace Hotels SRO. Residents of his properties finally had enough of his antics, and filed a group action against him with the LTB. During a February 2011 building inspection of the properties, Vancouver city inspectors discovered 165 deficiencies, including a dead-bolted emergency exit, unsafe stairwells, missing or broken smoke alarms, damaged walls, floors and ceilings, and clear evidence of bedbug, cockroach and rat infestations, according to a report that was presented to city council. To boot – the bottom floor of the hotel, a vacant commercial storefront, was essentially a gigantic rat infestation that would have made Crispin Glover’s skin crawl. Council also heard allegations that Wolsey, a former pharmacist, was still involved in the distribution of methadone and that he evicted people from his properties if they failed to obtain their methadone from him. Lastly – council also heard from tenants that he would regularly intimidate them, made substantial efforts to prevent them from speaking to city inspectors about anything and everything, and paid residents well below minimum wage and under the table for simple jobs like renovations and cleaning up rooms after residents moved out or died. You know…the simple jobs.

The Residential Tenancy Branch ruled that Woolsey owed $18,163.75 to 10 different tenants for infestations and health and safety risks. What did Woolsey do? He gave a proverbial middle finger to everyone, refused to pay the amount, skipped a bunch of court dates and requirements to show up, and returned to the Death Star. Since Woolsey technically sold the buildings in 2012 (while facing an injunction from the city and foreclosure from his bank), he figured it wasn’t his problem anymore.

Pivot Legal Society announced last week that it had secured 10 arrest warrants as part of a three-year battle to get Wolsey to pay the money he was ordered to, proceeded to make a whack load of old style Western “wanted” posters, and put them up all over the city. Apparently, that was enough to get him to come down from Mount Doom and resurface, which he did a few days ago. Pivot prepped a backgrounder on the whole situation which you can find here. It’s fascinating – really.

It’s guys like this who give good landlords a bad name. What do you think?

Hamptons Landlord Pens Letter Of The Year To Lousy Renters

Caught this hilarious piece on Jezebel today. Long story short: a landlord in the Hamptons rented a residence out to some young professionals for the summer – for $40,000. Sounds like a lot, but it’s chump change for the Hamptons. Seriously.

The summer ended. The landlord came back to the residence, and proceeded to have a heart attack over the condition of the property. Her outlet of choice to articulate her displeasure? The world’s best point form letter.

With damage including a variety of “bodily secretions” that included blood and soiled linens, broken locks, and damage to wood mouldings and drywall, the landlord clearly had reason to be more than a bit miffed. As much as this piece was written to be a bit tongue in cheek, part of me kind of agrees with the author’s suggestion on “what would you expect here?”. If 10 guys with Lacoste golf shirts and popped collars rent out a house for a summer, this kind of thing might be a given – even if they work for JP Morgan Chase.

The landlord clearly has never seen Weird Science, 21 Jump Street, or Superbad. If you do a quick hashtag search for parties in the Hamptons on Instagram – things like #hamptonsparty and #hamptonspartyface come up.

Either way. Good for a chuckle.

Welcome to Renting Well: Gastown

Hey folks. Welcome to “Gastown”, our newest version of Renting Well. This has been about 4 months of work under the hood, which we decided to name after Vancouver’s historic Gastown district. Our old naming scheme of “v1.3” just didn’t sound sexy enough. Since we’re based in both Ottawa and Vancouver — we thought this name was fitting for a fresh start.

We wanted to give everyone a rundown of some of the new features so here they are:

iOS and Android friendliness: Fully responsive interface that scales from large desktop/laptop screens all the way down to smartphones and has been optimized to feel almost like a native app on phones and tablets.
We’ve removed a few features from the app that don’t translate to small screens but otherwise it’s the same experience as the desktop. Items like the listings are better accessed on a desktop.
By bookmarking the site to your home screen (iOS — iPhones, iPads, iPod touches) you can launch it just like a regular app (watch a handy how-to guide)
An updated, streamlined interface throughout
We’ve simplified our billing plans to offer two tiers and the much-requested option to be billed annually is now available. As an incentive we’ve made the per-month cost on all of our billing plans slightly less if you opt for annual billing.
Ability to filter notes and to-dos by their tags (i.e. quickly see all the to-dos or notes for a given unit, property or tenant) or by which month they were created in (i.e. see all the to-dos or notes for March 2013, for example)
Increased performance on modern web browsers (both desktop and mobile)
Tonnes of minor improvements throughout the app

Take ‘er for a spin. Kick the tires. Let us know what you think.

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?

Watertown Landlord Gets Schooled On Social Issues With Mentally Ill Tenant

Add this to the curious personalities file. J. Clancy Hopkins, a landlord in Watertown NY got an eyeful when he recently opened the front door of a unit in his apartment building. He found his first floor, furnished apartment was adorned with biblical quotes and sayings a la Kevin Spacey’s apartment in Seven. The tenant, Mark Stewart, changed the locks and refused to let him have a key. Besides the art project, the tenant had also done other damage. The top of the living room’s steel radiator was sheared off, the kitchen sink was removed, window and other moulding had been stripped and a closet had been ripped apart. All in all – about $25,000 worth of damage.

When Mr. Hopkins acted decisively to remove the tenant, he called in City Constable Patricia J. Hennegan, who immediately recognized Mr. Stewart’s name, and proceeded to share a long list of other landlords who had been affected by Mr. Stewart’s penchant for religious decoration in units he rents out. Five year ago, Perry F. McIntosh, a landlord who owns 54 units in 11 local buildings, had to evict Mr. Stewart from an apartment because of similar damage he did, the landlord recalled.

Mr. Hopkins said he wants to know why he did not find out about his former tenant’s past before he moved in.

The Jefferson County Department of Social Services knew about Mr. Stewart’s past when it placed him in the apartment four months ago, he said. He wonders why he wasn’t told about his history of doing the same thing to other units. According to the piece, the situation has opened his eyes about the people who live in Watertown and have fallen through the cracks. As a result of what happened to the apartment, Mr. Hopkins is pushing for community support services for the mentally ill to remain the same at the St. Lawrence Psychiatric Center, Ogdensburg, as the state Office of Mental Health decides its fate.

Yee Haw! Eviction Law In Texas Become Uniform For All Counties.

Some good news from the Lone Star state. Effective August 31st, 2013, all 254 counties in the state of Texas will be required to abide by the same rules with respect to residential evictions. Previously, the process remained open to interpretation by local small claims courts and was a bit of an dentist waiting room dance. Why is this important? Well…it forces landlords to become more organized and it enables lone star state landlords to move more quickly in dealing with delinquent tenants. In many of the smaller counties, where precinct judges do not work full time, securing a court date in less than a month can be difficult. The new law forces the courts to set a date within a 10- to 21-day window.

“Timelines are so important and these rules were written out to help landlords deal with these tenants who are not paying rent,” said Bell County Precinct 4 Justice of the Peace Bill Cooke, who is a full-time judge. “These changes are not only going to give opportunity for more rights for the landlords but repair and remedy for tenants as well”.

Landlords previously took a tenant to court for an eviction hearing if rent wasn’t paid. The new laws will force landowners to take all of the tenants on a lease to court in order to evict them from the property.

Are you a landlord in Texas? What do you think of this legislative change? 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!