LANDLORD F.A.Q.
What's Expected of Property Owners?
In a nutshell, property owners bear the responsibility of ensuring that their premises adhere to health, safety, and regulatory standards set by local, provincial, and federal laws. The property should be reasonably suitable for occupation considering its nature and location. Inclusions such as appliances must be maintained in working order, and rental rates should align with the local market.
Property Management Services: What Do You Get for Your Investment?
Understanding your contract is crucial, as it outlines the services you are entitled to and the associated costs. Whether it's a tenant placement agreement or a comprehensive management package, your property manager is available for emergencies 24/7. Daily tasks range from rent collection to property inspections, and as a property owner, you receive monthly statements, invoices, professional advice, and tenant screening.
It's essential to negotiate a contract that caters to your specific needs, and if those needs evolve, your property manager can likely revise the contract accordingly.
Managing Expectations: What Not to Anticipate from Property Managers
While property managers work for property owners, they will not engage in unethical activities or break the law. Though knowledgeable and resourceful, property managers aren't experts in every field; some tasks, like repairs or legal representation, may require specialists. Property managers are available 24/7, but non-emergencies are best deferred to office hours.
Property managers cannot guarantee specific rental dates or rates due to external market forces, but they pledge to provide exposure and work the market in the property owner's favor.
Anticipating Costs in the Rental Business
Owning rental property comes with certain costs, including maintenance, tenant placement fees, and occasional arbitration expenses.
Understanding Tenant Placement Fees
Tenant placement fees may seem high, but they encompass advertising, long-distance communication, travel, credit checks, and other hard costs. The process involves significant time commitments, often exceeding 10 man-hours.
Considering Vacation Rentals During Peak Seasons
Before delving into vacation rentals during peak seasons, thorough research is essential. The higher costs associated with seasonal rentals stem from increased wear and tear, necessitating more repairs and maintenance.
Dealing with Changing Tenant Behavior
Despite meticulous screening, tenants may change their behavior unexpectedly. While diligence is exercised, occasional issues are inherent risks of the rental business.
Including Split Utilities in Tenancy Agreements
In most cases, split utilities can be included in tenancy agreements, but the terms should be negotiated during agreement creation. Landlords should be aware that renegotiating utility splits can be challenging if tenants disagree.
Determining Rent Rates: What to Expect
Rent rates are primarily determined by the market and the property's condition. Property managers aim to maximize prices for their clients, but factors like demand, supply, seasonality, and timing influence the market.
Raising Rent and Property Inspections
Rent can be raised, but proper notice must be given, and inspections can be conducted with a minimum of 24 hours' notice, unless there's an emergency.
Handling Security Deposits and Evictions
Security deposits must be returned unless valid deductions are warranted. Evicting a tenant without cause is possible, but compensation may be required. Removing services or facilities may also necessitate fair compensation.
Locating the Landlord and Tenancy Branch
For any rental-related questions or concerns, property owners can visit the Landlord and Tenancy Branch website at https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies. If answers aren't found, the website provides contact information for further assistance.
