If you’ve never rented out a property before, it can be a bit nerve-racking, but it doesn’t need to be. The process in Ontario is pretty straightforward. In this episode of The Your Life! Your Terms! Show, we walk through everything from the ads, to the follow-up process, the application and the Ontario Standard Lease Agreement. There are a few things you should know before handing over the keys to anyone. Together with Rock Star Mike Desormeaux, we go through the process in a step-by-step manner so that anyone can feel comfortable renting out a property. Remember, if you have questions always seek out a lawyer, a paralegal or a good real estate agent who has lots of experience with income properties. Enjoy the show!!
Hello, everyone, it is Tom Karadza. And we are about to go through the process to rent out a property. And the reason that we are doing that is over the last few weeks for whatever reason, we’ve been asked a lot by different people who happen to have a property that they’re going to rent out if they should hire like a real estate agent and pay someone to rent it out. Or if they could do it themselves. And at this point in Ontario with rental demand, it’s where it’s at, if you understand the process, we think she just rented out yourself because then you’re learning the whole thing. And it’s really important to understand how this works, we think it’s really valuable to understand how to rent out a property by yourself. Even if you’re busy, we think at least one time you should do this, you learn so much. So in this podcast, we have mapped out the steps that you’re going to take, you know from the different advertisements and checking credit and the Ontario standard lease agreement and the whole bit from the start to the finish. So hopefully this podcast serves as a little bit of a guide. And you do need some expertise around you. So if you have any questions at this, about this process, reach out to somebody you trust the lawyer paralegal or real estate agent, us here at Rockstar, we do all this stuff all the time. So make sure if you do have questions, you’re reaching out to someone who has experience and who knows this stuff. But in general, it’s pretty straightforward. So in this podcast, together with myself and Mike disorder, Mo, who has been with us forever here at Rockstar, really great guy worked with tons of investors on millions of dollars of investment property, we share some of the processes and some of the strategies that we’ve used over the years to rent out properties. So hopefully enjoy this. And if you are listening to this and you want to understand real estate investing for yourself, or how we are investing with investors from from all over Ontario in areas all over Southern Ontario, the Golden Horseshoe, Toronto and all the surrounding areas of Toronto, basically from like Bellville, to berry to London, to Niagara, that whole kind of region, you can come out to one of our training classes. That’s like an introduction training class where we do where we share some of the latest strategies that we’re using. And you can get a seat for that at Canadian Real Estate training calm. So you get a seat for that a Canadian Real Estate training calm. And the reason it’s in your best interest to register, we always feel that class up. So if you if you register yourself there, Jenny or Anthony from our offices will call and confirm the date, the location, all the details with you, it really helps helps us out if you register just so we know how many people turn and we can anticipate how to set up set things up on our end. And that’s at Canadian Real Estate training.com. Typically my both myself and Nick are there sometimes it’s just one of us. Usually I’m giving that particular class and we go through all the latest strategies and how we’re working with investors. Right now here in the Golden Horseshoe area. And with that, let’s get on with the show. Are you
ready to live life on your terms? Is it time did take charge, real estate, business building the economy, health and nutrition and more. It’s the your life your term show with Tom and Nick Karadza. Are you ready? Let’s go.
We are live. We are live timeout. Mike is already done. 75% of his natural cold brew. I have a regular cold brew and I’m only done 10% of my regular cold brew. And part of the reason is Mike convinced me to get a natural cold brew from Starbucks yesterday. I drank more than three quarters of this stuff before we did a podcast that hasn’t been released yet. I was I already speak quickly. I was speaking I could barely hang on to my own minute. Yeah, I could barely hang on to my own body. That was completely crazy. I don’t know how you’re if you’re listening to this and you haven’t tried a Nitro cold brew. First of all, Starbucks doesn’t sell them in venti
correct right just calling Grundy illegal illegal
it’s illegal us them. Starbucks party style Why are you not selling me this in a venti and the river
we’re downtown Toronto the other day I’m like not wanting an advantage like no not allowed
Didn’t she also say I’m not allowed to sell you this before 10am I heard that at one Starbucks but that was that we dismissed
Yeah, I think that was urban legend. Yeah,
What like this nitrogen infused cold brew?
Yeah, only had a select few Starbucks as well. That’s right. Yeah,
it comes out like it looks like a Guinness coming out. Yeah. So it comes into this tap that give it to you if you haven’t had one before and if you haven’t been drinking coffee regularly, hang on for the ride.
And if you like it a little bit sweet like I do add sweet cream to it.
Yeah, that’s blasphemy to me. So I know sweet cream but what so today I have like I feel like I’ve downgrade it’s a regular cold brew, which is already pretty strong. But yeah, that Nitro stuff. I gotta admit, man, I’m slightly scared. Okay, anyway, listen priorities here. Let’s get on with this thing. So the idea with this show in this episode is to break down leasing out of property renting on a property yourself. I can’t tell you the number of times where neighbors of mine friends of my people we know will ask us and say hey, you know what can I like hire Rockstar to rent out a property and it’s fair you can hire a real estate person a real estate agent go through a brokerage and do it and pay the what’s what is it Mike? one month’s rent? Yeah. one month’s rent to do it. But right now with demand for property so strong and the process so pretty simple in Ontario. I think you can do it yourself. Yeah, it’s really easy. Yeah, there’s no need to me there’s no need so I walked my neighbors through they did a great job of it. You’ve been talking I think to multiple people about it. It’s actually something we teach here at rock stars part of the Rockstar inner circle membership what was working in with investors and we go actually into it pretty deep. I think today will cover off some of the bases just to give everyone an overview. So I started with Mike I started ads isn’t the first thing yet. Is that where you think we start this conversation? That’s fair for sure. Okay, so I’ll run this by you. You tell me what you think. So the first thing is once you have a property whether it’s a straight rental doesn’t matter if it’s a condo, actually, Mike, I want to ask you about doing an open house in a condo. I’ve done that
stuff before. I have not been I’ve seen it.
Yeah. Okay. So condo straight rental as a townhome, whoa, semi detached, whatever, rent, own kind of investment property, a duplex kind of thing a student rental, it doesn’t matter. The most overlooked thing by most people are signs. And the reason for that is Kijiji is so good at getting the word out on rental properties that most people dismiss signage. But I can tell you multiple times we’ve had people tell us that they haven’t been able to rent rent out their property as fast as they had hoped. And they finally went out at our encouragement and to go put a sign in the lawn that the property was available. magically, a couple days later, someone responds and says, Oh, my gosh, I’ve been driving this area forever, or my parents live across the street and I wanted to rent out something didn’t know this was available. So do not dismiss a good rental sign. In the freaking lot of the property. We took a boat.
Yeah. qualified lead. Like that’s somebody that’s probably they had to either drive by or you’re right. Somebody was calling them saying, hey, there’s a sign in my neighborhood for this houses for lease, like the people are already familiar with that particular area. That’s how they saw the sign. So that’s a very qualified lead. They always
tend to be great leads when they call up those freaking signs. I’m saying freaking sun.
Yeah, not at the sun yet. Anyway, I remember. We had an investor he had a property and Barry, as he was hammering in his for lease sign. A lady walked down the street and said I wanted to see the house. But he wanted he was putting the sign in the lawn. But I think it was like a Friday, but he wasn’t going to show until Saturday or Sunday because he just wants to do a little bit of cleaning up. He just took possession just putting the sign into the ground. He’s like, No, no, the house is not ready. You got to come back at the Saturday or Sunday whenever you were showing interest like no, no, no, she insisted. She’s like, I live down the street. This is what I’m paying. I want to see your place. In the end. He showed her and it was a done deal.
I can’t tell you we’ve had similar things. Nick and I were ones putting in directional signs. So we didn’t put in just a sign we put in those little directional signs pointing to the house. And in one corner, somebody was ripping our signs out and they were pissed off at us. And another corner, we’re putting it in the corner. And the guy walks over saying same kind of thing. Hey, I know someone who’s trying to move into this area. Where is your where exactly is your house? Yeah. So literally on one corner, someone’s pissed that basically renting out some little directional signs to the property as well. There’s different bylaws and stuff around that. Yeah. Can’t leave them out for so long and different communities and things like that. They’re really, really helpful. Right? Yeah. And, Mike, I don’t know what your thoughts are on this. But there you just go to different print shops. You literally different in your local sign company, and you get the sides and I buy a metal post at the same CNET place usually. Yeah, stick that in the ground. Yeah. If it’s the middle of winter, get prepared for you having to be the world’s strongest human. So get that into the law.
Yeah. But ok. And then of course, there’s Kijiji What do you tell people about Kijiji? Any? Is it just like basically, yeah, the listing up there? Like put the Sorry? Yeah, well, we did a split test on this too. So we did the unpaid ad where you just go in and post your ad for free. And then what happens is the next person to post after you then your ad gets bumped down. So we tell investors as you know, if you’re going to go the free route, be cognizant and watch your ad because once it goes to be on page five, you’re sort of lost in the Abyss and you know, you’re going to get more leads if you keep your in between pages one to five. So our test was okay, well, let’s throw a free ad up. And then let’s do a paid ad. And the paid ads stays at the top you rotate from page to page, but you’re basically at the top of the page. And we were getting three times the amount of leads on the paid ad versus the unpaid ad.
Got it. Okay, do you remember that paid ad? How? Because I know there’s different levels of pain and you much you’re paying for
that. I’m gonna guess it was about 50 bucks a week keeps changing. They’re going up, not down. But
yeah, I was like two bucks to bump yourself.
Yeah. But compare this to remember when we were paying for newspaper else was like 500 bucks for a couple of weeks. I think
it was crazy that you wanted to add in a picture. Yeah, that’s right. It was insane. Yeah, KG. Geez. It’s funny because we can help investors buy a prop an investment property for 500,000. And sometimes we fail at convincing them to spend 50 bucks on advertising and our property for rent. It’s like amazing. Yeah, they buy a property for half a million dollars. Right? well spend 50 bucks advertise the property? Yeah. I’m not gonna buy a sign. That’s 150 bucks. Right? Yeah, gosh. Okay, so yeah, so the paid one really pulled that much more. Yeah, yeah. Okay. And then what about the actual property? Like, basic pictures? Yes. Anything? Any tips on that?
Yeah, I think he, obviously, the more pictures you have, the better. The description, you want to sound like a typical realtor in your ad, you want to, you know, paint up a picture through words of creating emotional, emotional appeal to the house. The biggest mistake is definitely if you’re using a photo that’s not relevant to the season that you’re trying to fill. So right now we’re in the middle of summer, if you put a photo up, and there’s snow on the front lawn, because that’s when you know, that’s your latest photo of the property. People are going to wonder what’s wrong with the house? Like why isn’t it filled even though that ad may be brand new? The see the photo doesn’t reflect the season.
And you might think that’s ridiculous listening to this, but we’ve seen
especially if you live in like a tobacco or somewhere and the properties in Guelph. Yeah. And the last picture you have is from the winter property up there. Yeah, sorry. That picture up there. Yeah. So okay, match it to the season. What about the actual write up anything? Pretty basic stuff, right?
Yeah, yeah, just to get any I don’t sound like the typical realtor. And I like to provide multiple means of them. The prospective tenants getting a hold of you so reply to this email, here’s my cell number. Some people are a little reluctant to give out cell numbers, but really, I’ve never had an issue of and doing this you know, we have been doing this for a long time and never had the same here giving up this cell phone any issues. No. And there’s a couple other
services like some that come to mind are ringcentral Yeah, if you just want to buy yourself another phone number. Yeah. And I know I forget what he voice he voice another one. Text now text now calm, which actually has a little app. We so I haven’t used that one myself. But a couple people here Rockstar use it. And they say the outbound call will mask your cell phone and it’ll look like you’re calling from whatever your text now calm phone number is Yeah. Which is kind of handy. Because sometimes, you know, people are a little timid to hand out their cell phone number you and I really haven’t been right, but that’s kind of handy for some people. I think people enjoy that kind of stuff. Yeah, that that free phone line.ca free phone line.ca Yeah, another one. And they all have pros and cons and different things. But there’s tons of phone services. But every time we’ve tested putting multiple ways to respond in a ad, we’ve always got more leads. So to your point in Kijiji, offer a phone even though it’s on Kijiji offer a phone number. Yeah, way to communicate with you for sure. Some people will call you some that will text you some will email you. Yeah, that’s just their preferred preferred means of communication. And then there’s a couple investors we’ve worked with over the years that have done some pretty cool stuff. And we’ve played around with this ourselves as well that if you really wanted to go to the next level, and right now, rental demand is so strong, right across Ontario, you don’t need to do this. But some people have really gotten good at running Facebook ads to their property ad. And you can, you know, you can build a little website. So the way this would work, if I was to break it down is, let’s say you’re going to buy multiple properties over the next few years, you can go to something like wix.com, which is WIX. com or Squarespace com, or I think GoDaddy has website builders, you can build a two three page website that just has some pictures of your property. It’s basically your own private little Kijiji ad that you’ve built, and you get a domain name like, you know, 1234, my street calm. And you put up your two page website that has some contact information, some pictures of the property, then you go to Facebook, and you run geographic based advertising. So let’s say your properties in Mississauga, you run this ad just so people kind of in the area can see it. And that limits down the budget that you would need to get really exposure. And you might throw like 100 bucks on this ad to test how many people click over to it. And we’ve seen a lot of people have some really good success at running Facebook ads in a geographic area. So the ads only shown to that geography and what you can put into the Facebook ad little interface and drive all kinds of traffic to your own website. And it’s basically your own website, again, is just basically almost a mirror of whatever you put on Kijiji same pictures. And some of the services now like Squarespace and wicks, they’re pretty easy to use. Like it’s not not difficult.
We had an investor recently posted in the Facebook community. Have you seen that? Where it’s like sales that are going on in your community? God says gentlemen, you know very well actually and he had a flurry of, of leads come from that. Okay, got a posting in the Facebook community group. I’m not exactly sure. I’m not an avid user of Facebook. But yeah.
Okay. So like in his in the community page for that area. Yeah, he knows that this home was for rent.
Yes. wasn’t paid for ads. And then I remember we I don’t remember how but we were able to get the backend analytics for Kijiji. And when houses for rent were most often viewed. And that time was between 12 and one, I guess when people are on their lunch break, and then from 5pm to 10. So I guess Robert, they’re at home. But those were spikes. spikes in traffic for people viewing homes release. forgot about that. Yeah.
So if you’re going to post it fresh, yeah, you can post it right at like five years. So you have those hours where people are looking at your Yeah, at the top of the list. Exactly. Yeah. Yeah. Got it. Okay, so and I think the the attitude with your advertising of your property is the more the better, like do this sign in the lawn, do directions. If you really want to get crazy, do Kijiji you don’t have to go to the whole Facebook thing unless you did the Facebook community like you’re talking about because that’s just posting it in the community. You’re not doing like a Facebook ad that might be advanced for some people, and use some of these websites if you want to build your own little website about your property or properties that you have available for him.
Yeah, just pepper the market.
Yeah, yeah. Okay, so that’s the ads. Next step, I think where I see some people go completely wrong as the follow up. Because let’s say you’re going to go to the property. Nick and I, a lot of times, we’ll do to like one day during the week. And one one, sorry, one day in time during the week, one day time on the weekend, if we’re really trying to rent out a place sometimes it might even be two during the week. But usually it’s one weekday option, one weekend option. And what we would do is if we if you speak to somebody, like on a Monday, but you’re not going to be at the property until Thursday, we will always call or text the day before to remind people that we’re going to be at the property that day or even the morning of if we’re going to be there that night. That’s huge. It’s so huge right now. You you suggest the same thing.
Yeah, people are busy. You know, you spoken to somebody and and, you know, they’ve, they’ve reached out to your ad, they want to see your property. You’ve called them at a time that maybe they’re driving in their car, and they’re trying to remember the date and time that you said you were going to be there. Let’s Let’s face it, everybody’s busy. I can’t remember the last time I was bored. Yeah. I think
I read in my friends once, about 10 years ago, maybe more. he emailed me once when I was at work and said I have read the internet officially.
Oh my goodness. But yeah, there’s people are scribbling you know, appointments down on pieces of paper and whatnot, like looking nowadays, like the dentist have paid full time people to call you to remind you of your dental appointment come got. So yes, you’re absolutely right, your conversions of people coming out will be much higher, if you call just to remind people because often they’re forgetting about that appointment.
Yeah. And I find when you call it because everyone’s scared to call for whatever reason, but when you call people to remind them, and if you’re if you can just be personable and normal on the phone, it goes such a long way to building rapport. Yeah. It’s brilliant, I find. And that matters. I think a little more when you’re doing some more unique strategies with investment properties. So for example, with our rent to own strategy, calling and building rapport with people before they get to the property because sometimes you’ll answer a couple questions like that. It really goes a long way because then they’re warm. Yeah, you know, it’s much friendlier when they’re at the property. It’s huge. Yeah, so Okay, so follow up mandatory day or day before you have to do
yeah. And that call is just very casual. Like, Hey, it’s Mike. Just want to make sure you can still make it out to the property tomorrow at 6pm. You know, I’m coming from out of town. I got two little kids. If you can’t make it, can you do me a huge favor? Can you let me know? Here’s my cell number. Yeah,
yeah, that point about coming from out of town, can you let me know really is huge, because that tells people you’re making the effort. Can you please make the effort to let me know if you can’t make it? Right? Yeah, that’s huge.
And then when you’re setting that appointment, not make it sound like you’re doing an open house? Like, Hey, I’m going to be there tomorrow at six, just you know, if you can make it out.
Yeah, hanging out, I’m gonna six to 10 I
got nothing better to do because now there’s no commitment from that other side. From that perspective tenant, the tenant knows well, he’s going to be there anyway. So if I don’t show up, no big deal. Meanwhile, that might have been your only lead that particular day. So let’s make it like we’re setting an appointment for a particular person for a particular time. But we’re trying to get everybody there also at the same time, and
we’re so that Mike, you just hit on one of the biggest little quote, unquote, secrets that I think we stumbled upon that we share with everyone is that always make appointments doesn’t matter. If it’s a student rental, a straight rental, we tell everyone Hey, look, this is an appointment I’m coming out, especially for specifically for you. There are going to be a couple of people at the place that time. It’s only time I can make it out there. So there are going to be some other people there just to give you a heads up that way. They’re not caught off guard. But we make it an appointment for sure.
You know, because we’re kind I wouldn’t even I don’t even know that file. Just and I think in the past just fair. We haven’t
you know, so maybe I’m case by case either I’m going to share that or not. Right. Right. But the You and I have both been showing properties when the person thinks they’re the only person and you set them up, like 45 minutes apart and stuff. But if you get three or four people at the property the same time. Yeah. It’s magic. Yeah. On the response is the decision making of the possible Yeah. And it is so much faster. The amount they’re willing to pay is so much higher. Yeah,
like not so much. I’m doubling it, right. But it just means I get less questions, but the rent. It really is huge. I remember years ago, I bought my back about an accurate RSS from the dealership with the managers demo car. And I was sitting in there we negotiate and I’m like, I don’t know. He’s like, well, this. This girl was in here earlier. And she’s coming back with her parents. And I’m like, it’s almost six o’clock or nine o’clock, whatever. Like not she’s not really going to come back to me. You know? He goes, Oh, there she is. And she was walking through the door with her parents and the place was about the clothes. I’ll make. I’ll take it.
Really? Yeah, come in with dinner.
Yeah. I gotta put that to go. But yeah, like on the spot with this auction like environment. We now have tenants. This happened before when we first started but then now they’re each transferring deposits on the spot. That happened with the triplex recently in Kitchener and no way. Yeah.
They haven’t talked to him on transferring while they’re talking. Yeah, they see other people that are and then you’re willing to return a refund it if you don’t proceed? Yes. Even done any tenant. Right. Exactly.
Yeah, we still got to do our due diligence.
To you. Yeah. Wow. Yeah. I love that. Yeah. It’s great. You accept the money? Yes. Yeah. Okay. All right. So okay, so follow up. And then yeah, it’s not open houses, always appointment. And then just the appointment. strategy works for student rentals as well. One time Nick and I were renting out a student rental property. We’re driving down there constantly. We just broke down and said, Okay, you know what, the next time we do this, we’ll just make an appointment. We had about four. That’s where it was a light bulb moment for us. We had like 40 students on the front lawn, and we rented out the house and 45 minutes instead of like, four to five days of back and forth and ever since then on doesn’t matter what strategy it’s always everyone at the property the same. We held all the students outside in January. She’s freezing cold. We’re like forcing everyone and I was pretending I’m the bouncer at the front door while Nick’s doing the tour through the house. That really really works. So and then just basic stuff to you. I think we always tell everyone like turn on all the lights. Like if there is like a crawl space in the basement turn on the little light in the crawl space like the furnace room light like everything on if there’s a fire please turn it on. Like open the curtains make it bright like this might sound basic. But you and I both been to properties where you’re walking around it’s dark and doll Yeah, I know windows are good. Get some fresh air if the property has been locked up. Yeah, get some fresh air in the property. Like make it like your your respective property.
Yeah. and respectful of them. Don’t play Mr. Mrs. realtor, like, let them be open up the door. Greet them, let them roam the house you hang out in the kitchen. Don’t follow them ride their coattails throughout the house, telling them how beautiful something is. Just let them be let them see if they like it. Which they usually do,
which they do. I always used to love that when people would follow you around. Yeah, look at this bedroom. And look at this closet and all this closet. The closet is much bigger than most closets in in this area. You know, oh my god. Me alone. But yeah, and then we always just hang out in the kitchen. Like you’re saying, Yeah, that’s naturally where everyone gravitates to. And that’s where then you can have the conversation. Yeah. Okay, and then for some properties, again, I’ll take this part two Miller method back to a rent own strategy. Specifically, we use sign in sheets, because we just want to track who’s coming. We want to do some follow up. I don’t know if Yeah, we can get into that. That’s something at Rockstar on as part of the Rockstar circle membership we run we run classes on some of those specific strategies, but sign in sheets have always been really useful to us as well. But I just want to make one other point that we show the property is vacant. When we generally don’t stage any property, you know, we usually have the appliances in there, but sometimes not even the appliances. But most of the time the appliances are in there. But other than that it’s just completely vacant. Yeah, there’s never been an issue, never an issue. Yeah. And then you can always have some people who challenge you about like rent prices and like, different questions. And usually I found when anyone kind of questions me on that kind of stuff. I’ve always found they’re not really a good tenant, they’re almost like a buyer. Like if they’re really pushing me on things on how much this property is worth. And you know, the rent isn’t justified because of this property or something, I find that it’s just a sign that says not going to work out. Right, you know, like, so I get into any of those conversations, like someone trying to prove how smart they are to me and this rental property. Yeah, I just find it. It’s not just a bad sign. And then how do you do have the open house? How do you handle? I go by gut feel on? How are
you read it? I mean, I think I’m a pretty good judge of character. But ultimately, it’s that credit score that man you you can’t hide from that. So I’ve had like the most pleasant young couples, you know, with very decent children. beside them behaving well mannered, and everybody’s well dressed. And then lo and behold, Mike’s judging the kids
yeah, it’s a good indication of how the parents will, will be. But yeah, and they had cash in hand for some last month’s rent. They gave it to me, then when I did a credit check. It was absolutely horrendous. So I mean, yeah, you definitely want to go off gut. But also that credit check is huge, huge. And then I’ll if I can, I’ll try to watch the vehicle that they pull up in as well. I don’t mean, is it a newer vehicle? I mean, just Is it something that’s got a bunch of dense and missing hubcaps and weatherstripping hanging down the side that they’ve beat up? Because if they are beating up their own vehicle, there might be a slight chance that they might not take as good as cares of your houses that you would like? And so how are you doing that? Let’s just discuss a straight regular rental.
How are you doing that transition from someone viewing the property? To then are you Is it an application? Like what you transition to application?
Yeah, so greet them at the door? Have them possibly signing the sign in sheet? Hey, take a look at the house. If you have any questions I’ll be hanging out in the kitchen. They’ll walk around once they come in, I want to get to know them for So would you guys think of the house? To let you know? And are you guys living in the area? And it could be yes or no? And if they are, if you don’t mind me asking how much you paying in rent, people will divulge this information. This is not, you know, the pretty good with that. And if it’s rent that’s comparable to what I’m asking for the property, they might be a good selection. So then yeah, from there, I’ll guide them on to the towards the application that they cannot leave the house with. So they’re interested in the house, they have to fill out an application on the spot. Because as we know, we do this in the class as well, we teach the investors at once one tenant leaves with the application, everyone’s going to leave with the application. So even if they say, you know, this is great, I can go home off, I’ll fill this out. And I’ll email to you. I’ll just say, you know, I’m really sorry. There’s other people coming out I’ve limited amount of these applications. So you know how to get ahold of me just shoot me an email, and I’ll happily email you an application, they’ll never email you. Like, those are people that just for whatever reason, they didn’t want to tell you that they weren’t interested in, just want to take an application and go,
both Nick and I have been in a little tug of wars with our piece of paper application before where someone’s like, I’ll just take this with me. And we’re like, No, no, we need this here. We don’t have that many. Yeah. You said we’re expecting more people, right. And it’s our way of just getting them off the fence like, Yeah, tell us because we know if you just take it like you said they’re not going to follow up. Yeah. Or if they sit there and fill it out. Okay, there’s a chance, right, but they’ve wanted to take it. And I remember having my hand on two corners of paper, and they have their hands on the paper. And it’s like they pull out it, then I pull it back. Then they put me the paper. And finally I went and get the paper but then I know Yeah, I know, they’re not filling it out, then cross them off with us. Because there’s something I wanted to share, when you are following up with all your leads, both of us. And Mike, I don’t know how you do this right now. But we used to just get a blank piece of printer paper from the printer and just write the property address at the top. And while we’re in showing mode, right? We were just write down all the leads that were like active, like actively engaged with us, right? And then I would put little notes next to them, like, you know, they’re going to be there Thursday, or they’re going to be there another day or can’t make it Thursday. And I would also put how many times I followed up with them. Because if I followed up, Nick, Nick and I both would never just follow up with them once. So like for example, you know how we said to call the day before or the day of it, we didn’t hear from them. We didn’t leave a message the first time. I mean, if it’s a text, we would ask for a response. Right? If we didn’t get the response, or we didn’t get them alive on the phone, we would follow up a second time. And I would just use check marks. So I would just put checkmark, meaning I followed up once you check mark, again, if I followed up twice, right? And then if after that, sometimes I’d go to a third if I really thought it was a good lead, right. And that was it was just my way of tracking how many times I followed up with them.
Before I gave up on that particular lead. Yeah, but another thing and you were very successful at this one time to is somebody may may ask. So they’ve seen your ad they reach out, Hey, is this house still available? And you say yes, and you try to coordinate a time to show the property and they seem to have gone Mia? So what we’ll do is if we know we’re showing the house a tomorrow at 6pm. Anyways, we’ll fire off one last email or text message or voicemail message. So Mary, yeah, Mary, sorry, when we haven’t been able to communicate or connect. I’m going to be at the house tomorrow at 6pm. I’d love for you to come by and see if you like the house. And you had a particular incident in Kitchener where they still didn’t respond, came to the house signed up
only once. Yeah, I wasn’t even going to go. But my hail mary went out. And I’m like, Well, if somebody shows up, yeah. And you know, it’s always those nights where like, I really want to go, it’s already dark. Our first showing to on that property showing so many we’ve done in our first showing where we really thought we were the champions of the world. And then you get the other properties where it takes you so many times to fill it. And you’re like I know nothing.
Yeah, yeah. I had one in Cambridge. And I remember the first couple came in didn’t like to have a second lady came in and she offered me her wedding ring plus cash. Yeah, I wasn’t married at the time. Didn’t know how much wedding rings would cost I should have probably went with that deal. But then I went with the third couple that came in that were young, professional couple, and they just had a bit of a better story. Yeah.
It’s always shocking when you’re renting a property, how much of a life story you get from your Yeah, you know, like a while total. And it’s a was it is eye opening when we first started doing this, yeah. And Nick and I were much younger in our 20s. And you had like older people telling us like their whole financial situation. We’re like, holy
man. But that’s goes back to your your advice on trying to talk to people, like it’s much better than trying to do this over email or text message because that can come across very cold. People are may read your email, or, or text messages differently than how you’re trying to communicate. So
and even when I followed up, I would always tell people like I remember falling up this one time in the fall, it was around Halloween. And I remember telling people, hey, look, I’m going to be out there, you know. And the reason I’m going to be up there at seven is I’m going to get at the head to get my son’s transformer costume. So I’m going to get the his costume. And then after I pick up that costume, I’m going to come out to the house. So I was purposely throwing out these things that I had, you know, insinuating I had children and I wasn’t prepping for Halloween just trying to make myself like not a landlord. And you’re just like some other guy who’s just going to be at the property and yeah, it was less intimidating. I found and I got much better response. Yeah, when I was just,
you know, she my personality through those follow ups. That’s huge. And just being personal at the property. The last thing you want to do is go into your rental property, especially if you’re a male in like a three piece suit, coming across as a used car salesman, trying to sign up a tenant,
and I found people to talk to you more when you’re dressed more casual. Yeah, I would never want to go in a dress shirt. Like even if I was in a dress shirt and pants. Yeah, I would never want to go that way. Yes. And for me. Yeah. Yeah. It’s all those little comments like you’re saying, Yeah, we’re, excuse me, you really get a feel for the person?
Yeah, there’s been times where I do not wear a very expensive watch. But my wife has very good taste, and it does look like I’ll take off my watch. And I’m going to make sure yes, I’m wearing
cheap watches look better than most people’s watches.
I splurge on the coffee on the watches.
Quality. Costco watch right there.
Yeah, I got fired, but no.
Okay, good again for my 40th birthday from Ruben from Costco.
40th birthday got me it was actually a really nice walk to make it. Where’d you get this? Like, I gotta
get this coffee beans.
But we also stale coffee beans from winners.
That’s right. Oh, man, but also we say yeah, so when you’re showing the property, definitely going casual to you were ultimately people helping people and you don’t want to come across as a salesperson. And if you don’t have a kid or a kid, because often these younger families coming in, they’ll just relate to you better. That’s a joke. But it does work that we’ve had investors bring their children out while they’re filling. Oh, I said it goes really well
as these one two young brothers that were trying to fill a property up in Hamilton. And they lived in Mississauga, they were making the journey over to Hamilton was property they couldn’t fill his property with a tenant. And we couldn’t understand why. So we finally go with them on like one Saturday morning. And these guys have balloons outside the front of the house. They had donuts in the house a coffee machine and but then they also in the in the family room like right in the living room. You know, when you open up the front door in the living room is kind of like part of that main entrance. Yeah, they had a table where if you expressed interest in the property, one of the brothers sat down and he set you set on one side, he sat on the other side and interviewed UOG he was like interviewing people in the living room. They were petrified by this point. And they were so formal about it everyone leap but they did really legitimately have people sit down and go through an interview process and they couldn’t find out what they couldn’t figure out why they weren’t signing up. And I’m like guys, you guys like it look like a used car salesman here. Ridiculous. You a little bit more casual and the whole process. Yeah, for sure. But ok, so you get people they look around the house, then you give them a paper based app. Are you What about some of the online services for credit check? Like are you? Yeah, sure. Yeah. Can you walk me through? What’s that process? Look, I’ve been using neighborly lately. So neighborly, is free. And then he described Yeah, what are you getting off neighbors? Yeah.
So just neighborly.com they really calm the tenant actually, is the catalyst of that particular application. So they go there. Sorry. Sorry, I go there. Yeah, that’s right. Send it to there. Yeah, I gotta put in the property address. That’s right. And then I send them a link they click that link, fill out some information upload their ID, I think it’s her driver’s license and some pay stubs, stuff like that. And then neighborly, will come back with a credit report and all this other all these other details on like, what’s the likelihood that they’ll be able to afford rent and whatnot. But however, I found so one of the most recent properties I filled in Stoney Creek very first showing I had seven families come out at a few families fill out the neighborly credit report. The likelihood of them being able to afford rent seem to be on each individual applicant, as opposed to group Yeah, because in this case, it was mom and dad, their daughter and her husband and then that couples daughter when she was only like two years old. So they were neighborly was reporting as an individual individual can make a pretty refilling there for when when affordable backlit for let’s
have like two separate living spaces. Yeah,
those are being awkward. Oh, yeah. Yeah. Yeah. deceiving from the outside. But yeah, large once you get inside, but when they’ve been great, too, and
that’s another thing. We’re seeing multiple generations living together more and more just for rent for sure. Yeah, yeah. Okay. Yeah. That’s that’s a huge trend. Yeah.
So yeah. So on the neighborly side, just because I haven’t been on the tenant side to fill out that application. I don’t know if they maybe mistakenly didn’t click on something where they could have applied as a group, but they were applying individually Anyways, what I wanted to see what’s their credit report, and everybody came back clean and okay. But yeah, there’s tenant verification, com rent check Corp.
com or certain which is cr TN dot CEO, which I know some of the property managers we use us like, sir, yeah, I think that one’s a more paid for a more expensive service. Yeah, but that one also has social media links.
So what would you do in this case? a tenant says, but I have my credit report. Here it is. I still
gotta be sold. I tell them hey, thank you. Because some of them, unfortunately, yeah, exactly. I’m like, hello. And I’ll just say we’ve seen so much. Yeah, I mean, thank you for this. Yeah. But in order to qualify for this particular property, yeah, I have to pull it myself. And you need permission to pull it. That’s why you go through it like and neighborly, by the way, is NABORLY calm neighborly, or just Google that up. And even when we’re using paper based applications, we would have a second page, if our if it was one of our mortgage brokers may be pulling their credit for us. They needed to sign that second page of the mortgage broker gave us giving the mortgage broker authority to pull credit and that kind of stuff. Yeah. So yeah. And we just explained to them sorry, yeah, I need to pull it myself, I need to see it myself. I need. And I need to see the credit score, the credit score in mortgage in the mortgage, land anything. And Mike, I don’t know what you think of this, but for a while we were using six at or above was always like a credit. Yeah, if your credit was six at about Yeah. And the reason we always use that as if that was your credit score, mortgage brokers and bankers could always get you like, the best mortgage programs available in Canada, anything below that was starting to get into poor credit. And then if you were like in the four hundreds or something, then you’re like, really, like holy smokes, were like scary, really bad credit. And we would also look for things like any judgments on the credit report, like if they had child support payments that they were missing, you know, because you can see like, court judgments will come up on their credit report, there was some things that were just like flags to us, you know, and that kind of stuff was one of them to missing child support payments. Yeah. And things like that would come up on their credit. And then the other thing we would look at is that their income as a family was three times the rent, that was always just kind of like our rule of thumb. Right? So like, if we were asking 1800 bucks a month, or, you know, if I round up to 2000, it was just $6,000 had to be the gross family income, right. That’s the perfect scenario. And if someone came in a bit less of you know, of course, maybe we were willing to do that with them if they had good credit in the whole bit. Yeah. But that’s kind of our rule of thumb. We’re just like the banks in that regard. But we were looking at all the family in come. Yeah. So if these apps gave it to us independently, we will add it up, and all their income sources. So if they were getting, you know, help from the government with some payments, or whatever it is, it’s all of it. And it’s gross, not net. So it’s the it’s the pre tax, total gross income. Any thoughts around that?
No, I think that’s Yeah, that’s bang on. And we’ve had instances where people are new to the country. So it’s not necessarily that they have bad credit, they don’t have credit. So in those cases, sometimes we’ve been able to negotiate where they’re paying six months up front or a year up front. And one of the girls on our team had a year up front for a Hamilton property just last week.
It’s great. It’s so good. Over the years, well, how many investors have we seen get like two years? Yes. And we’re always like, yes. If somebody offers you two or three years, yeah, the answer is always Yes. Yeah, I will take that right now. Thank you very much. Yeah. Especially if it’s in a big bank draft or something like that. Okay. And then I just want to explain something on the student rental side, we just a point of interest, that lease agreement on a student rental, we rented the house as one host to students. And everybody is on the single lease agreement that way to the insurance companies to the bank. It’s not like a boarding house or a rooming house. It is rented out as one host everybody on one lease. And then speaking of that, the transition from So Nick, Nick called you, Nick, Mike, the, the you check their credit. So you go back and forth with one of these apps? And then the How do you transition to the actual signing of the lease? So you get somebody to fill out neighborly? Do you have two or three people calling a filling out? neighborly? Have you chosen one person that you like to fill it out? Or? No, no, no multiple? Multiple tenants. Yeah. And you selected the person gut feeling right? credit score? Everything looks good. Yeah. What’s your next step at that point,
yet? Call him back saying you know what? I’ll always say I spoke with my cousin at the house. I’m gonna say you know what, I have to speak with my in this case, my wife, or my partner? Maybe if you’re not married at the time, I’ll get back to you within 24 hours. And if everything checks out, Hey, you know what? spoke with my partner and you guys seem to be like, great fit for the home. Are you still interested? Yes, we are great. The next step is for us to meet up, I’ll need to collect first and last month’s rent and sign at least more often than not, though. Now. They’re sending the transfers. So you don’t even have to meet up
then before we always have to meet up some entire parking lot. Okay, let’s meet money.
Yep, have the lease, they sign off the lease. Now I’m doing that electronically as well. There’s several apps out there for
that. Okay, because you’re using the standard cuz we all have to use the new, not new. It’s been there for a while now. But the new Ontario standard lease agreement. So you’re just doing that digitally as a PDF. Right? emailing to them, they fill it, you filled it out? Right? They sign it correct. And send it back to you. Yeah. And then you transfer the money. Correct?
Yeah, damn, things are gone so much easier. And then
honor before the day they move in. So first and last month’s rent had to clear, we’re not taking a check, like first month’s rent at the house, like a handwritten check and then handing over the keys because that money hasn’t cleared. So you want to make sure that money’s clear. So either bank draft cash or E transfer, meet them at the house. You’ve now as the owner have confirmed that the tenant has already put the utilities into their name, the tenant has tenant insurance. And now you’re able to hand over the key only should do
just covered so much there. Yeah. So you have the money. Yeah. The lease assigned the utilities. You are calling utility companies and say checking that the utilities are in their name your as of a certain date, right? Correct. Yeah. So hydro, gas, hydro water heater rental. Sometimes you can get it put in sometimes you can’t.
Okay, insurance insurance, that they have tenants insurance, correct. Yeah, forcing them to get tenants insurance. And it’s never been
an issue. Yeah, can I also let them know, like, Hey, guys, the insurance that I have going to cover the house, the content insurance for you, or the insurance for you, it’s only going to be about 15 bucks a month, and it’s going to cover all your contents in the event, something were to happen to the house, and I’ve never had a tenant have an issue, then the benefit of that
to you, as the investor and check with your insurance guy or girl is that if there’s ever you know, if they’re cooking something on the stove, and their fire breaks out, typically the tenants insurance or the contents insurance usually will cover that stuff. So it will fall under that insurance policy, not your insurance policy, right, which could be a benefit again, check with your insurance company on that, that particular thing. Okay, and then I just want to just before we go to the next step here, I just want to just mention at this point that so many people have tried to rent out properties over the years. And we will sometimes get feedback like you can never rent out a property in Kitchener or Barry or Claritin at the price that you guys are saying and usually that responses is coming from them running an ad on Kijiji that people have not been out to the property so they don’t understand how great your property is. They’ve just seen some pictures and your pictures aren’t that good. And you explain how much you’re you know asking in rent. And they’re they’re kind of criticizing you over the phone over text through Kijiji, however it is and the investor, especially if they’re a new investor gets completely frustrated and thinks that they aren’t going to get the rent that they’re hoping to get. And our response to that is always get the people to the property, meet them at the property, the property itself does the selling. It’s the area, the street, the street appeal of the property or the condo, it’s the thing that does the selling, get them to the property to just accept that you’re not going to be able to get the rent that you’re thinking because you’ve gone back and forth through text message or Kijiji communication or whatever. It that’s a week. And I remember one time in we were we had an investor that bought a property and Nick was dealing with this particular investor. This guy actually called Nick a liar. And if anyone calls Nicole, there is no worst thing to call Nick kharadze than a liar or to say that something he said isn’t accurate. Because in this case, I remember that the office door was closed This is when we were in the closet. Not in the closet. No this is out right we this is our actual office was a closet and we were working out of this closet and remember the closet door was closed. And it was in the in this closet but that was our office and he was just yelling back and forth this Russian guy was just freaking out saying when they could said that the rent he was gonna be able to get was totally not right. And we always stand by our word. And Nick committed to renting out the property are when he when he says himself, it was him and I together but himself. And we do it for free just to prove to this guy that that he could rent it out. And on the very first showing we go up there multiple we get multiple people to property. We rented the property that night. Yeah. And I remember it vividly because it was a friend of mine. I was helping on another property been in the area. And he was struggling a little bit trying to do the same thing over the phone and I said, hey, look, I’ll take over your rental because it was a friend. I didn’t want to listen to him kind of complain about not finding a tenant. So I’m like, I’ll take it I had multiple people I think was the day before Halloween. It was in the fall. And we rented out my friends property at this Russian guys property one night with cash. I remember the guy when I went to the host Nick was renting out for the sky from where I was. I had cash in my hand as a deposit from the other property. The Russian guy was there at the house. The garage door was open. He was prepping a for sale sign he was getting ready. He bought the house like a month before it was getting ready to sell it which he would have lost money on the Commission’s and the real estate fees. He had paid land transfer already. He was literally getting ready to sell it and he was gonna sell it privately try to save money, which was broken and probably going to be a disaster. And Nick that night rented out his property for the price. He said he would rent it out, right? Yeah. And I’ll just never forget that when we asked the guy about it. He finally admitted that he was trying to do all the qualification over the phone because he was too lazy to go out to the property that
always you it’s just a good point.
Yeah, like you can do it. We know some investors who have some great systems with Facebook ads, and they’re pre qualifying them before they get out to the property as possible. But you have to be skilled. And you need to know what you’re doing. If you’re new to this. Let the property do the selling right.
Yeah, for sure. Okay, yeah, we had a property recently in St. Thomas, where the investor paid a little over 300 for the property. He put an ad up on Kijiji, I think the ad was 1950 per month. And I called him because I was with another investor out there recently. And I and I called them and said, Hey, because it was a very similar house. I knew we would get the same amount of rent and I’m like, What did you rent that property for again? Was it I think I said 1990 goes no 1950? Did anybody say it was too much? And he goes, Yeah, I go where? I got the house. He goes no, on Kijiji I go, what did they set the house? He’s like, they didn’t say anything. Exactly. And it was done first. And I’m know I’m setting the bar high here. And I apologize, but it was first showing it. You’re such an I know. I know. You’re saying Yeah, I know. But it was actually from a person from Alberta. Yeah, quite a few families out there. But moving back to Ontario. This particular family. Yeah, he got he
got it. Yeah.
Yeah. So yeah. So yeah. It’s funny people will try to negotiate online before they even seen the house and saying it’s too much. haven’t even seen the house yet. And
you in the investor try to negotiate at that point. You just lose. You don’t have any leverage on this thing. Yeah. So and then I remember at one point, just going to your point about filling properties. At one point, we failed seven properties in a row first showing. And I remember patting ourselves on the back, like, Oh my gosh, we like I guess we’re investment experts. Yeah. Yeah, we know order. Then it was JP hunt. I sold the property. So JP hunt is one of the coaches here a rockstar works with investors. And he was just getting started with us. And that he sold the property to an investor who bought this property but couldn’t get out there. So JP Hunt was taking the responsibility of finding a tenant. And he was struggling finding a tenant, you went up there a few times. And and I remember thinking, you know, we had just filled filled seven in a row one of them. We forgot the keys. This was I forgot the keys before but this wasn’t me. This was Nick forgot the key. Nick showed the property from the outside through the windows. He signed leases, I took confident we’re getting like a to look through the window. Perfect for you. We signed leases. So at this point, we’re like, I guess we can do no wrong. We get to this property. And I’m like, JP, I’ll show you how it’s done. Just watch what I do. You know, Listen, man, I got this figured out. Just watch. I’ll teach you. I’m the expert here. It took us two freakin months. Yeah.
That feels like forever.
when when when you’re going out twice a week? Yeah. Two months. Yeah, I was winter. Thankfully, I was starting to doubt myself longer. So yeah, if you’re listening to this new investor, just know that we have failed many properties like the first day. But there’s always that. And you know what, it’s often the property that you think is going to rent out so fast. The property you think you won’t get a lot of response to you always get a lot of response to the ones that are like the perfect properties that are going to rent out. No problem always take forever. But it took us two months desperate at that point running and we started doing yard directional signs on top of our yard sign more stuff on in newspapers back then. Yeah, we finally rented out and I remember being so humbled by the experiencing, I’m never just gonna take this for granted. Like you can fit properties in one day. Yeah. But sometimes it’s not us. Some of them. It’s just the situation. And you’re just it’s just going to take some time. Yeah. So if you’re struggling to fill a property, it sometimes you just hit those and it’s nothing about you or just just stick with the process. Turtle wins the race, right? Just keep going. Yeah. So okay, so Mike, so standard, so they go to do some kind of verification.ca, or certain or neighborly, you give some thumbs up, you go back and forth. And they fill up the lease the Ontario standard lease agreement, if you don’t have that, you can just Google that up. And you y’all can get it on the government websites. Now we all use the same lease. There are a couple points here, I just want to make sure that everyone’s clear on the reason what Mike said is really important that you want the money in hand before you give the keys because in in Ontario, if you give the keys over to a tenant, they are in your property. So if they give you a check for first and last month’s rent, and you think it’s going to clear the bank, we’ve seen this many times, Mike, that someone will give the keys, then they will go to the bank and the check bounces. At that point, you can’t just pull them out of the property, they are now covered by the tenant act in Ontario, just like anyone else, even though the first and last month’s rent has not cleared. So I just want to just really harp on that point. Yeah, make sure you have certified funds bank draft a transfer in hand, before you give the keys. This also applies if even if you don’t have the lease agreement, completely filled out and signed in Ontario. And you can check this with your lawyer or your paralegal. So don’t take my word for it or our word for it. But in Ontario, once keys have been handed over, even if the lease has not been signed, they are now covered by the tenant act and you’re going to have to go through the tenant process. And we’ll talk about some of that to get them out of your property. So be very careful. multiple people we’ve met over the years have made this mistake. It’s brutal mistake to make.
And really there’s no need for it anymore, just because of the fact that everyone I don’t know of anyone that can’t do any transfer nowadays before when it was just a check or cash or bank draft. Sure. It could be a Sunday the banks aren’t open. What are you going to do? They don’t have cash. nowadays are no excuse. No. Yeah, I
agree. And in Ontario, unfortunately, the only thing we can collect is first and last month’s rent. So you can’t get like a secure I think some people are under the impression they can get security deposits because they hear of these things and stuff. It’s first and last month’s rent is what we’re allowed to ask for in Ontario. Yeah. Okay, so now Lisa signed. Oh, there’s one other thing on the lease, Mike, we see this a lot is that people will say well, I gotta get my tenants to cut the grass and have discount I put on the lease that it’s like the, you know, rents 1800 dollars, but again, minus 100. Because they’re cutting the grass. From all our experience, it’s better to keep the lease as is 1800. And have a separate agreement or contract. If you want to call it a contract with the tenants to cut the grass for $100 a month, you’re going to pay them keep it separate. Because if you ever go to the tenant board with your lease the adjudicator to tenant port from our experiences, always going to look at whatever the lowest option on your lease is. So if your lease says like 1800, you know, minus 100. And in brackets, you put something like you know, for cutting the grass every month or something, they’re going to look at at least as it’s been our experience anyway as 1700, not 1800. So keep your lease pure, like just keep it as a clean agreement. And if you’re going to add to any other discounts or something, make it a separate contract or agreement where you pay for them for the service. You can talk to your lawyer talk to a good paralegal about this. But that would be our recommendation. What’s your thoughts on that?
Yeah, no, that’s fair.
Yeah. Okay. Okay. And then I was, the only other thing I was gonna mention is pictures of the property. Yeah, there’s apps to do it now. But you could just take pictures of the property and get the tenants to initial that’s the state of the property as they move in and attach those pictures to the lease. And the reason I’m saying that is a lot of people are scared of damage. And if a tenant damages a property, it’s very hard to get a judgment for that, unless you have pictures of the state of the property before they move in. Right? So if you’re scared of that, get that those pictures and get people to initial it. You can do it online. I know there’s a bunch of apps that do this kind of stuff now and stuff but you can also go to old, you know, old school, just take pictures on your iPhone, drop them into a document, attach that to the lease, and include that as part of the lease. Yeah, yeah. Anything any other around the lease any other little details. I mean, there’s lot we can talk about it, but sure to high
podcast in itself. But I think the whole process keeping on the theme of filling your property. One of the things that we’re really good at as a group here at Rockstar is with the coaches on Monday, when we’re going over our investors and how they’re doing with filling our their properties, we can quickly decipher if there is an issue where that issue is happening. For instance, if they’re doing what we say in regards to the ads and the ad placements in the way the ads should be posted, but not getting responses, we know there’s something wrong with the ad. So then we can help them and critique their ad. Sometimes people are thinking their ads up on Kijiji, but it might be actually in the wrong section, or it’s actually not there because they’ve done something that violates KG geez policy I, they put too many ads up of the same property and GG is blocked them. And yes, ma’am Maria, or your ads up, you’re getting great responses, but you’re not getting people to the house. So now in all likelihood, there’s something going on with the conversation there. So people have reached out and the investor might be making some kind of mistake on the appointment. Or they get people that that do come to the house, but now they’re not getting applications filled out. So again, this is something that we all work on individually with our investors. But what we find in like, generally is a 50% breakdown moving through the process. So if 20 people say they’re going to come, roughly you should get in and around 15 to 20 coming out. But of those people that come out, about half of those should be filling out applications, about half of those you should be collecting deposits, or last month’s rent from and then of that batch, maybe one or two are good for tenant selection,
roughly. So when you get deposits from people you don’t choose, you’re just emailing the money back. Yeah, words. Yeah.
Yeah. And now you can, it’s track to because you’ve done the transfer back to them. So that’s another thing that we have at the property as a deposit form that we’ve got, how’s it for them?
Okay, so if I was just to step back for a second, before we get to actually quickly, we’ll just cover the eviction process really quickly. You run the you follow up with people you do open, don’t do open house strategies typically do appointments at the property, set up the property properly. Do a credit check, use the Ontario standard lease agreement? Don’t hand over the keys until you have money. right ladies? insurance, utilities and insurance. What are you asking for proof of or just asking, Hey, did you get contents insurance? Yeah, will you fire off the binder letter? Yes, just got a binder letter, okay sent over to you. Then only then hand over the keys. If the lease expires, let’s say do a one month sorry, a one year lease. Just understand that in Ontario. Even if you don’t sign a new lease for another year, they go to what’s called a month to month situation where they can give you now I’m blanking on this. But it’s 60 days notice to vacate the property. And they are covered still by the tenant act. You just because they don’t have a new lease doesn’t mean you can just say Hey, get out of my property tomorrow. They are covered by the tenant active therapy you rent, and they don’t want to leave. Even without a new lease. They are entitled to stay as long as they’re paying you for as long as they want on a month to month basis. Yeah, the only conditions you can get them out of the property. Are you yourself moving into the property? I forget the notice, but you yourself moving into property, you sell the house and the person who’s buying the house is moving into it for themselves. Right?
They can’t be renting it out.
Yeah, they can’t be renting it out and not inherit the tenant. Yeah, they have to inherit the tenant. That’s it. That’s, I think, major renovations. If you’re going to do it, don’t you have to offer it back to them? That’s right, I think right, you get offer back to them. Yeah, I think you can adjust the rent. But you’re right, we’re going to bring Kelly back on here and talk about some legit stuff and dive into some of those things.
But we’re finding now more than ever tends to not want to leave because rents have escalated so rapidly beyond what we’re allowed to, as landlords increase the rent, that they don’t want to leave because they’re the next place that they’re going to go to is that similar is probably 100 200 300 $400 more now.
Yeah, it’s insane. But yeah, we saw what like 25 $50 Yes, yeah, you leave your three. I shouldn’t laugh.
Yeah, no, it’s just the state of the realistic. Yeah,
yeah, we’re gonna go to whole freakin rant about and Bank of Canada. And
that drives me crazy about these gurus lately, the new theme seems to be you shouldn’t own your own home, you should own investment properties. And I’m like, we’re on the other side of this. We see what happens to people that don’t own their own home, and then our tenants and now all of a sudden the investor is going to sell for whatever reason, they’re gonna pull equity out of the home. It’s just time in their life. And now this poor tenant Whose child is in that school district, has to leave can’t afford that area anymore. It’s like you’re changing lives here. First of all, these and the guys that say that are the guys, man. Yeah, these guys are flying private jets, telling people I think it just resonates as people can afford their own homes. It resonates with well with them, right? Oh, don’t worry about don’t buy your own home by rental properties. But it’s easiest one to qualify for your own personal home.
If you have kids. I like thinking you have a place for your family.
Yeah, well, and then they say is, well we can do on Do you really want to pay a mortgage, you want to really want to pay property taxes. insurance? Yeah. But guess what? The landlord is passing those costs on to you. You’re paying the landlord’s mortgage property tax insurance. That’s just ridiculous. Wow. Yeah, really? See, I pissed off? That’s not that’s not cool. For my
best mild level stuff.
Yes. I don’t even know how I deviated that way. But Oh, yeah. Well, I think we’re just the cost of attendance right now. It’s just it’s, it’s, it’s crazy. So yeah, totally.
Okay, so they’re month a month, okay. And then finally, once they’re in the property, every check with your insurance company on how often the insurance company wants you to go by check. If the if the property goes vacant check with the insurance company, give them an update that the prop basically talk to you are unsure on anything to do with the property, the property goes vacant, sometimes they want you to go buy for, you know, while it’s vacant. Even when the tenants in there, they want you to go by certain amount of time, sometimes it’s twice a year, sometimes it’s four times a year, depending on the insurance company, check with your insurance, all that kind of stuff. You actually can get insurance for damages, you can get insurance for vacancy periods. If you’re nervous about it, you always pay more rent.
that kind of stuff. So just there are options out there more than maybe ever for for investors. There’s even like Airbnb type insurance policies now more and more stuff like that. And then finally, the eviction process in Ontario. Most people hate it, but I actually don’t mind it at all. Because I think it’s pretty laid out like it’s not perfect. But if someone misses rent by, you know, one day, you fill out an end for form my correct me if I go wrong here, but it’s 14 days, yeah, they have to true up and pay your rent, there are very strict processes and how the end for is to be filled out and delivered. So follow the instruction form, which is very good. Just read it. So if you just Google up Ontario tenant act and for form something like that, you’ll find it. If they don’t pay, at that point you you can then fill out an L one, which is the form to get a date at the tenant board to possibly get an eviction, then the tenant board if you’ve never been, if you’ve ever watched the People’s Court as a kid, and you just want to have some fun one day, find where one of these tenant boards are just sit at the back of the room supposed to kill stuff. We will get all huffy and puffy about stuff and storm out of this thing. But anyway, you go there. If you have a property manager, I want to get this straight. Because remember when you and I used to go
Yes. Oh, yeah. We’re not allowed in? Yeah, yeah.
Mike and I both used to go with investors when they were new. And we would go and represent them at the head board until I think years into it. One of the adjudicators told us like, Who are you? Yeah. Why are you here? You don’t own the property. You’re not a property management, right? Trying
to be a cotton kitchen or doing something like that. But they let me off this time. But that’s it.
We’re doing it as a service. Yeah, that’s like, Hey, don’t be scared of
But you need a property manager. It’s actually I don’t even know if the property manager can go. I think they have to hire a paralegal. I think that’s the only nowadays
Yeah, I’m pretty sure that
will check with Keller Williams on here. But to fill out the L one, there’s a cost for it, I believe
the last cost
7171 90 yet, whatever. It’s something like that. That’ll get you a date at the tenant board. If you get an eviction notice Usually, I mean, there’s many exceptions to this stuff. They’ll have about 11 days, whatever is the magical number to move out to the property. If they do not move out, you can take your eviction notice to the local courthouse and hire a sheriff for I was 350 bucks haven’t done this in ages. And a sheriff which I thought was going to be like Arnold Schwarzenegger, which is not like an old white hat.
Yes, that are bad. Yeah.
Tell him older dude in a Ford Taurus, with a bulletproof vest and a little sign on the dashboard, Sheriff. Parks at the curb, and it’s his job to give you vacant possession of the property. So there is a process in Ontario, don’t be scared of it. Get familiar with it. It’s nothing to hold you back on. But that’s it. I think that’s anyone can do this, especially with demand for properties where it’s at. I don’t think there’s really a need to hire someone to fill a property. I mean, you can if you’re busy and you don’t want to do it.
Yeah, if you got a busy life or the properties a few hours away, maybe that’s a different story. But yeah, if it’s within, I’d say an hour’s radius. This is easy and easy. You shouldn’t really worry about tenant calls like you’re not really getting those
and at this point on a regular type rental how many times a week would you think someone should go out could they do it once a week or do you say twice a Philip property?
Yeah, yeah. Ideally twice a week but if worse comes to worse definitely every weekend Yeah. And you’ll get it done stay I agree. Yeah. Right. You can make it out during the week are good now going to come on the weekend. More people come out now.
Exactly. And we’re seeing this spillover effect in Ontario like never before. So like communities outside of Toronto in Toronto, you’re gonna feel the property there any rental property basically. And that has spilled over to all of the 95 area around Toronto. But now we’re seeing even communities like St. Catherine’s getting so busy that there’s a spillover effect where Welland and port Colburn are getting busy in London in London. Yeah, in London. We’re seeing a spill over to St. Thomas St. Thomas. We’ve said we saw long time we saw spillover from the east side of the city. over into like Claritin, you’ve been as far out east as Bellville looking at different properties all around Barry we’re seeing stuff spill over into a really and when I say spillover, I just mean the demand is so strong that it’s spilling over into these other communities. Right. So the domain in Ontario are just absolutely incredible. It really is. I think that’s it. I think that was good. Yeah, you finished your your night you’re on like two thirds of my golden rule. But anyway, hopefully you found that useful. And that’s it. Hey, everyone’s hopefully enjoyed that talk. Listen, if you are interested in this kind of stuff, and you want to learn more and how are investing with investors here at Rockstar you can go to Canadian Real Estate training.com register for a seat at one of our introductory classes. There are about 90 minutes long we jam pack that class with as much information as humanly possible. So you can register for a seat at that class at Canadian Real Estate training.com until next time, your life your terms