It`s understandable that new property investors are generally also new to property management. It's also understandable that CREW online -- courtesy of award-winning real estate professional Shannon Murree -- would provide them the ultimate tip sheet for mastering both.
Do Your Homework!
One of the top tips and advice to give a new real estate investor, or those of you starting out, is to do your research! Whether it’s a single or multi-family home, don’t cut corners when getting into the investment game. It’s important to know what the expectations are for landlords and tenants in your area and jurisdiction.
Laws vary from province to province and when you’re first starting out, even though it can be overwhelming initially, do your research because otherwise trial and error could be extremely costly.
Whether you choose to self-manage or hire a property manager – you’re going to be on the hook. Even if you hire a property manager, be involved, don’t be afraid to ask questions and ask to be bcc’d on correspondence or have status reports until you’re comfortable and gain more experience.
Afterall, you’ll need to manage your manager. Everything he/she does impacts you directly and at the end of the day, “I didn’t know” when faced with a fine for violation of a bylaw is not a plausible defence. Your name, as landlord and owner is on everything. Failing to do so, you’ll get out of the investment game quickly and not have given yourself a fair shot.
If hiring a property manager, rely on referrals and not just a company's website or a convincing Kijiji ad applauding multiple years of “combined” service in the industry. Most importantly, find out whether the principals and representatives in the management company are themselves investors.That makes a difference.
Shannon P. Murree is a sales representative and property manager with RE/MAX Chay Realty Inc. Brokerage, and Canadian Real Estate Wealth's Top Real Estate Agent of the Year, 2013.
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