Is tenant turnover a good thing?
My college marketing teacher often answered questions with the reply, “it depends” which is an appropriate answer to this question. There are times when tenant turnover is beneficial to a landlord. Let’s evaluate when tenant turnover benefits the landlord.
BC Law allows owners to increase rent once every twelve months after the start of a tenancy and the increase is controlled by an amount approved by the government. These two factors limit the amount a landlord may increase rents at their properties. BC has strict limitations on when landlords may evict tenants. If a landlord uses a fixed term lease the landlord must occupy the property for six months after the tenant leaves, eliminating the landlord’s ability to re-rent the unit to another tenant at the end of a fixed term lease.
When a tenant chooses to vacate, provides notice to the landlord, the landlord has the right to re-rent the unit at market rents. When a tenant has occupied a property for multiple years, often the market rent will have increased during those times at a greater rate than the allowable amount under the tenancy laws. When a tenant has occupied a property for a long time, five or ten years the unit may be outdated compared to other properties in the market. Taking the time to upgrade the unit, with new flooring, kitchens, bathroom, appliances or fresh paint may provide an increase in the rental appeal for the property.
There are benefits for long term tenants who respect the property and always pay the rent on time, but turnover gives landlords the opportunity to increase rents and revenue of their rental property. There is no optimal time identified as good for tenant turnover though three years is perceived as a good timeframe for each tenancy. When your tenant provides notice after three years, view it as a positive opportunity for your rental property.
Need assistance managing your property? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
Stage One of a tenancy - Receiving Applications
Previously we have talked about the three stages of a tenancy. Stage one is the process of selecting a tenant. We mentioned in stage one the process of showing the property can be used as part of screening the tenant’s suitability for a rental unit. Receiving an application for the property is good news, and is the beginning of the next step in the process of screening the tenants.
After receiving the application it is important to take your time and review the information provided. When Cartref Properties receives an application we review the details of the previous address, place of business where they work and phone numbers of the employer to confirm the information is legitimate. Online searches of address locations can provide details to confirm accurate information. A common practice of applicants is to provide mobile phone numbers of people who are listed as employment references. A review of the company information online and calling the main phone number instead of the number provided, if different, can often lead to identifying inaccurate information.
Verifying information is a difficult process and even with all your due diligence something may slip through. When checking information and confirming details you find you need further information, ask the applicant to provide more for clarification. I have found this often leads to applicants who are trying to hide something from removing themselves from applying, this comes in the form of, I already found something else.
When an applicant is willing to meet your request for further information, this shows a willingness to work with you, and their honest interest in renting the property. One must still verify the new information provided is accurate.
Rushing the process of checking information and due diligence often leads to a negative experience in the rental property. I am amazed when prospective tenants come to view a property and tell me they are looking at another one the same day and then later that day they advise you they found something else. In a tenant favourable market it is more important to do your research, as tenants will play on the landlord's desire to not have a unit vacant in order to rent a property.
“Everything comes to he who waits”, Patience is a virtue, which is hard to maintain.
Need assistance managing your property? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
When is the tenant required to vacate the rental property
When a tenant provides notice to vacate or the landlord has provided notice for the tenant to vacate, when does the tenant need to vacate the premises?.
A tenant is required to provide a full calendar month’s notice to vacate the rental unit. Tenants often misconstrued this as 30 day’s notice from June 15th to July 15th. What it means is notice must be provided by the end of the day in June to move out on the last day of July. A tenant wishing to vacate at the end of July must provide notice on June 30th. When a landlord provides notice they must also provide the required time frames depending on the notice being served. Landlord notices normally require the full month’s notice as well.
After a notice has been delivered or received by the landlord the question is when is the tenant required to vacate the unit?. Section 37 of the Residential Tenancy Act requires tenants vacate the property by 1pm on the last day the tenancy is ending.
If notice was provided by the tenant on June 30th to leave on July 31st, they are required to vacate by 1pm on July 31st. This is the standard time required for tenants to vacate the property. The Residential Tenancy Act allows landlords and tenants to mutually agree on a different time for them to vacate the property. It is prudent for the tenants to vacate by the 1pm deadline to allow the landlord to prepare the unit for new tenants and or showings.
When tenants fail to vacate on time this can delay the process of renting the unit to the new tenants, cleaning or completing repairs needed at the end of the other tenancy.
A tenant may request a different time when moving as they are unable to obtain moving vehicles and or help to move by the specified time frame. If the tenant requests the time frame change, ensure you have an alternate time in writing to. An alternate time can be entered on the tenancy agreement at the beginning of the tenancy. When a tenant fails to vacate it could easily move to the next day and this could be considered holding over which a landlord should have provision the their agreement for if the tenant does not vacate the property.
After the tenant has vacated all of their belongings and not before, the move-out inspection can be performed. A move out inspection can’t be completed while tenants are moving out as they may cause damage in that process and have not cleaned the property after vacating as they are required to do.
The move out process can be time consuming and needs to be handled correctly to ensure the property is available for the next occupants.
Need assistance managing your move outs? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
“Helping landlords find tenants a place they call home”
Notice to vacate for Landlord use of Property
When an investor buys a rental property which is currently tenanted, what options does the new owner have? Are you allowed to evict the tenants and find your own tenants?
Residential Tenancy Laws in BC require an owner of individual rental properties to occupy the unit in good faith for a minimum of six months when a current tenant is served a notice to vacate. What this means is when an investor purchases a property which is occupied they are unable to request the current tenants vacate the property with the intention of re-renting the unit immediately or performing renovations and then rent it again. The current owners must provide the two month notice to vacate, also called “For Landlord’s Use Of Property” .
It is important to understand who can occupy the unit when a two month notice to vacate is served. If the owner wishes to occupy the property while they own it there are certain people who are considered family and are permitted to occupy the unit. They are the landlord, the Landlord’s spouse, children and or parents of the landlord or landlord’s spouse. Only these family members are considered family in tenancy laws. A brother, sister, aunt or uncle does not qualify. If the landlord is a Family Corporation, a person holding shares in the Corporation or a close family member, as described above is permitted.
Failure to occupy the unit for the six months could result in compensation being awarded to a former tenant, and that amount could be equal to 12 months of rent.
If you are selling a rental property which is tenanted and the new owners want to occupy the property, owners are required to provide two months notice, and compensate the tenants for the equivalent of one months rent. This is often provided in the form of non payment of rent for the second of the two months. A key component of providing the two month notice requires the purchaser to provide a request in writing directing the current owner to serve the two month notice to vacate as it is their intention to occupy the property. The letter must be provided to the tenants with the notice to vacate. Failure to provide the written request from the new owners could make the notice to vacate invalid, and the tenants might have a right to continue residing in the property after it has sold.
Need assistance managing your property? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
“Helping landlords find tenants a place they call home”
Why is it called property management?
I have worked in the rental and strata property management field in British Columbia since 2009. I have often wondered why it is called “property management”. Truth be told, we as property managers don’t really manage property. I have never received a call from the furnace asking me to change it’s filter, or a roof saying it is leaking or a toilet saying it is clogged.
The occupants who reside in the building are the ones who communicate the issues and concerns at the building. The tenant calls to say the toilet is not working, or that they are vacating the property, the tenant is the person who doesn’t pay rent on time, not the building. The tenant signs the “tenancy agreement” the property has no say in who lives there.
The reality is we are not property managers, we are people managers. When renting your property the goal should be to have a positive experience for both the Landlord and tenants. The property surrounds the people we manage, and when we manage the people well, the property will be happy. Who do we manage? We manage directly and indirectly relations between tenants, owners, building managers, and strata corporations. When property managers don’t manage the people a negative rental experience will occur.
Need assistance managing your people contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
“Helping landlords find tenants a place they call home”