October 5, 2018
With a staggering vacancy rate of less than 0.5%, it may seem as though Kelowna property owners are at a huge advantage. After all, it’s the tried and true formula of supply and demand: a shortage in available units vs an increase of tenants looking for housing equates into an assured asset for the savvy investor. While it’s true there is a broader pool from which to choose the most qualified tenants, property owners must be sure they are compliant with the many rules and regulations established by the BC Residential Tenancy Branch (RTB). Remember: ignorance is not a valid defense, and the costs associated with RTB violations can make a significant impact on your bottom line. Ensure you are not putting yourself at risk by following these tips from Real Property Management Executives.
Screening Tenants: Laws and Costs
In a market where rental homes are hard to come by, property owners are often overwhelmed with the amount of enquires they receive. Keeping track of interested parties, answering calls and emails, scheduling showings and meeting with potential tenants takes a significant amount of time. You increase your chances of placing a great tenant by staying organized and accommodating showings for good prospects who might have complicated schedules. Most importantly, have all your prospects fill out an application that highlights their housing and employment history. Real Property Management Executives confirms applicants are who they say they are by conducting comprehensive background checks, following up with all personal and professional references and confirming each applicant’s income. Landlords must be aware there are strict laws that protect an applicant’s privacy, and from them being discriminated against, so familiarize yourself with the regulations. Violations can result in heavy fines and costly lawsuits.
Allowable Rent Increases
The good news for property owners is that low vacancy rates often translate into increased rental rates. But there are strict laws that govern allowable increases, so landlords must show caution when it comes to raising the rent. Currently, the allowable 2019 annual increase in British Columbia is 2.5% and only one increase is permitted every twelve months with legal due notice. If a landlord raises the rent higher than what is legally allowed, tenants can not only refuse to pay the overage, but they can also file a complaint against the Landlord with the Residential Tenancy Branch. Real Property Management Executives stays on top of the ever-changing rent increase regulations and guarantees compliance with all local and federal laws. For landlords, this takes time and research, but having the knowledge can save you from costly mistakes.
When a Tenanted Property goes up for sale
Kelowna’s shortage in rental properties makes for a perfect opportunity for real estate investors looking to maximize the return on their investment. But what if tenants are living in a property the landlord wants to sell? The Residential Tenancy Branch outlines very strict regulations that protect both the tenant and the landlord. The key to avoiding conflict is being aware of these regulations and having clear and respectful communication between all parties. Real Property Management Executives works as a trusted liaison between the property owner, the tenant, and the real estate agents. Not only do they ensure tenant and landlord rights are upheld, they also facilitate a positive transition for all parties.
It’s no secret that Kelowna’s vacancy rate is one of the lowest in the country. The flurry of new development shows the crisis is being addressed and the increase of multi-unit sales presents some exciting opportunities for investors. But landlords must be careful these opportunities don’t leave them vulnerable. Hiring a licensed property manager will save you time and ensure you avoid what could be innocent, but costly mistakes. Real Property Management Executives knows the most effective way to maximizing the return on their clients’ investment is twofold: attract and retain good tenants, and compliance with laws and regulations. Make sure you’re not putting yourself at risk and call for a quick review of your processes today.
Treena Carson-Piva and her husband, Aaron Piva, are the Owner/Operators of Real Property Management Executives in Kelowna, BC. Real Property Management Executives is independently owned and proudly serves the entire Okanagan area.
