We want to buy an investment property and wonder if we should manage the Tenants ourselves?

With so many television shows, conferences, books and how to guides available showing the glamorous side of income property ownership there’s no doubt why this form of real estate investing is attractive. Many people only consider the day to day details of how to manage their income property only after they’ve taken action and bought a new property. Thorough analysis before taking action about how the property will be maintained and managed may be a more prudent bet to be sure of the risks and potential costs that may occur with having Tenants.

An incredible resource for all home owners and Tenants is the Landlord and Tenant Board website which is equipped with the ins and outs of the forms needed and recommended, information on laws and rights, applications and processes and so much more.

A professional property management specialist with a great reputation, track record, knowledge of the constant changes mandated and a proven communication strategy may be the ideal solution. Speak to an accountant about Hiring a Property Manager who’s fees may be a tax deduction. The role of a Property Manager should include everything to keep the Landlord protected with their Income Property.
Services would include advertising, lease signing, Tenant screening. Managing Tenant complaints, dealing with issues, infractions and evictions. All communication and action is documented which is crucial if a case goes to court. Rental fee collection, utilities or other minor maintenance including co-ordinating and setting up contractors as necessary. All actions are taken with Landlord and Tenant permission and the core concern of a Property Manager is to do what they can to reduce risk, which benefits all parties. Costs may vary and Property Managers should be screened before hiring, and they should share their credentials and qualifications. One month’s rent per unit, per year as a common fee structure used by Property Managers and some will offer a 90 day guarantee regarding the Tenants they place in the units.
Have a face to face conversation with your REALTOR® to empower you in your move to buy an investment property and ask them if they can supply you with top questions you should be asking a Property Manager prior to hiring them.

– written by Connie Power

Connie Power is a Real Estate Sales Representative SRS® ABR® SRES® and Mentors and Develops New Real Estate Sales Representatives for RE/MAX Hallmark York Group Realty Ltd., Brokerage serving York region and beyond.
Empowering you in Real Estate, Call Connie today to make an appointment to discuss your next move at (905) 726-0856.

**Not intended to solicit those currently under a real estate contract