Being a landlord comes with many responsibilities and challenges that are often overlooked. You need to look after tenants’ needs, arrange work orders, collect and process rent, and also deal with arrears and complaints, to name a few. These tasks can really use up a lot of time and energy. And taking care of everything while balancing your personal life can become extremely overwhelming. That’s where a property management team can really help.
Let’s look at some of the tasks and functions a property management company can help tackle for a landlord.
Not all landlords stay on-site at the property they take care of. Some will need to travel between several properties, while others may be situated in an entirely different city or country. A property management team can help take care of the hard to manage day-to-day tasks and functions, while reporting directly into the landlord as required. This can free up travel time for the landlord as well as ensure all issues are addressed quickly and effectively, which is otherwise hard to do from afar.
You can count on a property management team to easily take care of all the work orders and maintenance that the property requires. Property managers will have deep knowledge and experience working in the industry and your market, and will have a list of preferred vendors and a sizeable network to contact – something most landlords will not have at their disposal.
As a landlord, you may only be interested in growing your business, investing in new properties, and focusing on the business structure as opposed to the hands-on management of the property. Hiring a management team can help you do what it is you do best – focus on growing your business while they take care of the rent collection, capital expenditures, leasing, and other intensive management duties.
Hiring a property management team to help can be the right decision for a landlord that needs dedicated and hands-on expertise. Whether you are an off-site landlord, portfolio manager, or are just looking for some more free time, you can get all the peace of mind you need by sourcing a professional company to help.
Simplified Rentals specializes in property management services for rental properties and condominium corporations. Get in touch to learn more and discover if our services are the right fit.
In life, nothing stays the same. That couldn’t be more accurate when it comes to millennials and the state of the Toronto rental market. Now more than ever, market analysts are scratching their heads over what to anticipate or expect from this demographic that is edging more into the prime years of moving out and into their own place that they can call home. But as stats and sales have shown, more and more millennials are clearly interesting in forgoing the big lot and backyard for the convenience and location of condos and purpose-built rental apartments.
For those trying to comprehend the trends that are catching the eyes of millennials, here’s what to know:
Lifestyle over Property
As millennials enter the workforce, the importance of location and lifestyle appear to clearly take precedence over property. The condo and rental boom shows that being in close proximity to work, along with having quick and easy access to transit, are top priorities for this generation in their 20s and 30s.
Quality over Quantity
Young buyers entering the market are also keen on the concept of quality over quantity. That means they’re seeking amenities, communities, and even urban villages that they can feel connected to. Being a part of an active, urban community and having the ability to walk to parks, shops, pubs, and restaurants are all important factors that are influencing the current waves in the market. When it comes down to comparisons, the quality of lifestyle clearly takes precedence over the quantity of property (ie: square footage).
With the Toronto housing market placed well beyond the realistic reach of most young buyers, and with the realistic alternative for owning a house necessitating a long commute, it’s really no surprise why the rental market is thriving. For many millennials, the affordability factor has as much of an impact on their decision as the convenience factor. With the unpredictability of the workforce these days, combined with the soaring housing market prices, many millennials simply cannot afford the down payment for a home, let alone a hefty mortgage.
Times are changing, and that is clear to see when it comes to the trends of the Toronto rental market. As millennials reach the age of independent living, they are favouring the quality lifestyle, convenience, and affordability factors that condos and rentals can provide. And with the state of the housing market, many experts believe this trend will continue for the foreseeable future. In light of this fact, condo development and purpose-built rental apartment development will continue to thrive.
Investing in a rental property can be a low-risk, high-reward way to secure income for your golden years. It seems simple enough: purchase a property, rent it out, collect income—but every investment strategy has its pros and cons. If you’re considering jumping on the property bandwagon to fund your retirement, here’s what you should know first:
Pros of Owning an Income Property:
- Generates monthly income
- Tax advantages
- Can earn more each year by raising rent
The first advantage of owning an income property is implied in the name: it generates income for you on a monthly basis. Anything left after expenses goes into your pocket every month. Depending on the rental value of your property and how many units you own, this could be hundreds or even thousands of dollars of additional income each month. As you pay down the mortgage, the money in your pocket only increases each month.
This additional income can be used to fund your retirement, or it can be used for anything you choose: paying for children’s education, buying a boat, vacations, or reinvesting in other property.
Aside from the fact that it can generate additional income for you each month, one of the other advantageous aspects of owning property for rental purposes is that you can increase the rental fees each year. So even if it’s generating a smaller amount that you anticipated at the beginning, it can grow each and every year to keep pace with or exceed cost of living increases.
When it comes to taxes, you can deduct most of the expenses associated with your rental property from the income you generate, lowering the amount of tax you’ll have to pay.
Cons of Owning an Income Property:
- Finding Tenants and Stable income
- Expense and Repairs
- Non-Liquid Asset
Of course, every investment has its downside. For properties, the most obvious is that they are expensive, not only to purchase, but to maintain as well. It’s not always easy to scrape together enough for a down payment, never mind the higher down payment requirements that come with owning an investment property. Generally speaking, lenders in Canada require investors to front a minimum 20% down payment for non-owner occupied investment properties.
If you live in an area where finding reliable, stable tenants is difficult, it can cause your plan to fail, drastically. Any vacancies cause lost income, and undesirable tenants can cause higher maintenance expenses.
Make the most of your investment property by working with a Toronto property management company. From choosing the right property to finding the right tenants to conducting routine maintenance, Simplified Rentals will handle each and every step of the way in order to ensure your retirement is well funded and set for smooth sailing.