Small Landlords need better protection
I was reading an article that stated smaller landlords need more protection than larger ones. I don’t understand this explanation. The article suggested that the small landlords are the ones who provide the basement suite, shared rooms, the first condo and the house in the area where you kids can have a back yard and not have to play in the hallway of a condo.
This is very true but it doesn’t matter who owns the house, condo or townhouse all landlords in BC must follow the same laws and regulations when renting their properties.
We work with many small landlords and speak to many who contact us about our services. The biggest difference between large and small landlords is not the protection they need, it is their knowledge of the laws and regulations. Large companies have employees who work in the field and learn and understand the tenancy laws. We often speak to landlords about the process of renting and are provided with direction or suggestions on how they want the property managed. When we advise them this is against the laws and or regulations a common reply is, if the tenants don’t like it then can rent elsewhere. This attitude will often result in the landlord ending up in front of the RTB at a hearing brought forward by the tenant. Large landlords treat the renting of their properties for what it is. It is a business, and needs to be operated like a business.
The article suggests that small landlords can’t afford to be without rent for a month, afford a bailiff, legal fees and are not equipped to deal with conflicts from bad tenants. I disagree with these statements. Small landlords can hire a property manager who has the skills to properly select tenants and deal with tenant related issues. Many small landlords see the fees for hiring a property manager as a detriment to meaning their property then cry foul when they end up in a negative situation due to their ignorance of the laws.
Can small landlords afford not receiving rent or hiring a bailiff. Large landlords are not charging a different rent that allows them access to a larger pool of money to pay for these items. If the larger landlord has a vacant unit for six months they are losing money, just like the small landlord. If they need a bailiff they also have to pay the same fees the small landlord pays. The difference with small and larger landlords is they run numbers based on the unit being vacant for periods of time and save some of those funds for these emergencies. This is operating your rental like a business. I have discussed renting a property for many individual landlords who have owned their properties for ten or fifteen years and still have a very significant mortgage on their property even though it has been rented for all of those years. This is not managing your money effectively while renting your property. This is taking all the profits out of the property before you have earned them.
Managing a rental property is very complicated to understand all the rules and regulations of the RTB and for some reason many people think they can manage a rental without any education or knowledge of the system. It is the only business I think people buy into without any understanding of the business they are entering. What does Warren Buffet say,
“I only invest in things in my circle of confidence”.
If you have no knowledge of managing a rental property why are you buying one?
If you do buy a rental property why would you not hire an expert to assist you with the knowledge you are lacking.
It is not that small landlords need more protection from teannts, they need protection from themselves.
Need help managing your investment properties. Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com
