IN FOCUS: An investment opportunity with a difference

Inside the rental commitment agreement

Mar 28, 2018

There can be some anxiety attached to a real estate investment, even if all of the boxes are ticked and the development you’re buying into is a guaranteed winner. ‘What if I don’t find a renter for the property quickly?’ It’s a question that many investors ask themselves during long sleepless nights.

In order to make those worries a thing of the past, a leading real estate development has created a rental commitment agreement that cover all of the bases.

“As part of these agreements, the development company is responsible for finding quality tenants and taking care of all of the property management functions,” says Kirin Singh, Vice President, ROi Developments. “The investor never pays an occupancy fee and receives an automatic distribution each month even if a tenant is not in the property. Every aspect of an investor’s needs has been thought of.”

While these types of agreements are not compulsory, if offered, investors are recommended to take the opportunity. As well as finding quality tenants and taking care of all of the property management functions, after the first year, rental commitment agreements between landlords and investors also create a ‘rental pool’ for all of the investors in a condominium development. For example: If 26 of a development’s 27 units are not rented out, the owner of the unoccupied property will still collect rent. The investors take the loss collectively, so the loss is divided by 27.

“All investors share the gain and the loss; it alleviates the pressure on people,” Singh says. “It really puts a firecracker under the property manager/developer to find tenants because that loss is coming out of their property.”

After the first year of the agreement, the investor can either choose to extend their terms for a small fee or opt out. “It’s up to the investor, they can either choose to continue with the passive, stress free investment or they can start dealing with all of the tenant and property management themselves,” Singh says.

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ROi Builders has opened its doors with a clear vision: to provide the best investment developments at an affordable price with the ability for the average investor to make a significant return on investment hence ROi. We intent on making that vision a reality. We intent to make our own path in condominium development throughout southwestern Ontario, setting the bar for the average investor to make a size able return on their investment. Working with a team of experienced professional full-time staff, as well as dozens of the top trades professionals in the business, ROi proudly intents on providing an opportunity for investors to enjoy additional income while they continue to live their lives without any significant change. At ROi, our top priority is making sure you’re satisfied with your investment. We appreciate your business, and in return we offer you exceptional value. We vow to make a point of providing you with the very best investment opportunities. As we move forward, we’ll continue to grow and develop with you.

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