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Expert advice, market reports, and tips from the Niagara Region real estate professionals.
If you’ve taken my Money Machine seminars, read my articles or listened to me speak you’ll know that I am passionate about building a real estate investment portfolio that will provide a substantial passive income stream into retirement. Buy one property a year. Never amortize for more than 15 years. Never sell. Simple. And proven. It works.
For those of us who are residential landlords or for those aspiring to be there is a relatively new piece of legislation that we need to be aware of. It’s called the “Protecting Tenants and Strengthening Community Housing Act 2020”. Its effects are quite far-reaching. It makes amendments to the Residential Tenancies Act 2006, the Housing Services Act 2011, and The Building Code 1992 and it replaces the Ontario Mortgage and Housing Corporation Act.
Over the past 5 years, property values have gone up. A lot! In fact, here in Niagara, we’re told prices are up a whopping 135%. And along with that upward movement on prices rental rates have skyrocketed as well. But that’s market rent.
In the last couple of issues of our newsletter we’ve looked at the process of evicting a tenant because either the current owner/landlord requires the premise for his own use or that of his immediate family, or he is selling the property and is giving notice to the tenant on behalf of the new owner who does. We saw that the process is initiated by serving the tenant with an N12 Eviction form. And we also saw that the process can be enforced in a timely manner by simultaneously submitting an L2 Application with the Board.
THE MONEY MACHINE - EVICTING A TENANT – PART II. Last issue we looked at the process involved in evicting a tenant. We saw that the Residential Tenancies Act provides means for a landlord to evict a tenant not only for objectionable behaviour (non-payment of rent, property damage, disturbance to others, etc.) but also because the landlord, either current or newly acquired, needs the unit for himself or for his immediate family.
As landlords we are in the business of attracting and retaining tenants, not getting rid of them. But there are times and circumstances where it becomes necessary to part ways with a tenant. At such times there are specific procedures and time frames that need to be followed.
The point of the Money Machine seminars and the principle behind it, is to build wealth, both by way of asset value, or net worth and also by way of a passive income stream that will carry you comfortably into retirement.
Buy one Property a Year for Ten Years. Never Amortize for more than Fifteen Years. Never Sell. Three simple rules. Not necessarily easy. But simple. And yet, time and time again people who attend my seminars or read my material get started on that path, but then they fall off the rails. And generally what they have problems with is rule number 3 – Never Sell. What happens is this.
People acquire real estate for a number of different reasons. The end user, for example, which in the case of residential real estate would usually be the home owner, buys a property as a place to live. Whether it be a first time buyer, someone transferring in or out of the area, a move up buyer wishing to accommodate a growing family, or an empty nester looking for a home more suited to his current lifestyle.
When a real estate salesperson is licensed to trade in real estate, he is licensed under the Provincial Real Estate and Business Brokers Act. He is licensed to sell real estate, bricks and mortar, and he is licensed to sell businesses. Often they are combined where a buyer is buying both an operating business and the building from which it operates. And while that is the optimal situation it is not always the case. The real estate and the business within it are two separate things, and need to be treated as such.