How to reduce risk when investing in the real estate market
1) Find and purchase a qualified investment property
2) Automate your property expenses
3) Rent your property to a Canadian Agency
4) Focus on your own passion and let the Association manage your investment!
It’s that simple.
Purchasing an investment property might be a smart choice for your portfolio. If history is an indication, property in the Okanagan inflates with time*. Managing investment property can be a heavy time burden. One a property has been purchased, the first order of business is to establish a rental rate that is inline with the local rental pool. Remember, if you price your rental property rate too high, the unit will sit vacant for months and if you price it too low, you’ll be overwhelmed with applicants calling every day.
Once an ideal rent is established, time is required for advertising and showing the property, followed by screening and selecting tenants. Once a tenant is selected, more time is required for drafting up a formal rental agreement and reviewing all the required details with the tenant.
Throughout a tenancy agreement, tenants may bring forward concerns about their suite, such as leaky faucets, misplaced keys, heating and cooling issues, creaking doors and the list goes on. While some concerns will be the landlords responsibility, others are not. Regardless of whose responsibility the issue is, the landlord will still be responsible for fielding all the calls and then directing the tenant to the right resource.
Making sure rent is paid on time and ensuring no damages are done to the property are top concerns for investors. Ensuring rent is on time can become tiresome if you have to leave a note on the tenants door each month, or stop by the rental unit each month to collect rent. At the same time, filling out a condition inspection report can be labour intensive and if filled out incorrectly, can cause a landlord major grief.
One way to mitigate some of these concerns is to hire a property manager who can reduce the amount of time you need to focus on your investment. A property manager in the Okanagan costs anywhere between 10% to %50 of the monthly rent, plus a finders fee for the tenant.
There is an easier way! You can work directly with a Canadian Agency who will manage your property for free. This Association also employs their own service person, who is dispatched [at no additional cost to you] for minor service calls. In addition, they carry their own insurance to take care of damages caused to the property by their selected tenant!
So to recap, here’s what the Association offers:
1) Identify FAIR market value for rent
2) FREE property management
3) Timely rent
4) Tenant screening, selection & support
5) Quarterly condition inspection reports
6) Damage claim coverage
Real estate is a huge passion of mine and I'm always available to chat. If you have any questions regarding this opportunity or would like to discuss real estate in general, please contact me.
* REAL ESTATE TRENDS IN THE CENTRAL OKANAGAN OVER THE PAST DECADE