Vancouver's Real Estate Market

[chinook79]

8 months behind, COVID or not, is not acceptable. I myself went from six figure salary to CERB/EI since March, yet I have been juggling around whatever I can to not miss one payment. There are resources out there (CERB, CRB, and working part time as needed) to aid people. If tenants are not willing to work things out with landlord and blatantly misses 8 months worth rent, he/she has no will to take responsibility themselves. Your friend should talk to tenant to see if something can be worked out, and if nothing is resolved, start eviction process immediately. I've only evicted one tenant in my life and on hindsight, I wish I did it sooner than later. Eviction process isn't fun and could be costly, but if you had to really consider eviction, chances are, the sooner the better. In my case, I started eviction process when I confirmed that the tenant CHOSE not to pay, not because they weren't able to afford to.

[gilly]

Originally Posted by chinook79

8 months behind, COVID or not, is not acceptable. I myself went from six figure salary to CERB/EI since March, yet I have been juggling around whatever I can to not miss one payment. There are resources out there (CERB, CRB, and working part time as needed) to aid people. If tenants are not willing to work things out with landlord and blatantly misses 8 months worth rent, he/she has no will to take responsibility themselves. Your friend should talk to tenant to see if something can be worked out, and if nothing is resolved, start eviction process immediately. I've only evicted one tenant in my life and on hindsight, I wish I did it sooner than later. Eviction process isn't fun and could be costly, but if you had to really consider eviction, chances are, the sooner the better. In my case, I started eviction process when I confirmed that the tenant CHOSE not to pay, not because they weren't able to afford to.

He's right. And the process takes a while too. At least 1-2 months for me. I've had to do it once. I would start the eviction process now.

[jcmaz]

Originally Posted by gilly

He's right. And the process takes a while too. At least 1-2 months for me. I've had to do it once. I would start the eviction process now.

My family had to evict people a couple times due to renters not paying their rent. Expect around 2-3 months of paperwork processing and waiting before you can kick them out.

It's always best to serve them the letter the very first month they are late with their rent to start the process. It does somewhat hurt the landlord/renter relationship but landlords aren't in the position for someone to freeload off of them either.

[Matsuda]

I had to evict a nightmare tenant. It was a pain in the ass. Ever since then, I hired a company to manage the place so I wouldn't have to get calls at 2am from strata asking me to deal with the tenant. It's been good for the past few years now

[murmur]

Originally Posted by Matsuda

I had to evict a nightmare tenant. It was a pain in the ass. Ever since then, I hired a company to manage the place so I wouldn't have to get calls at 2am from strata asking me to deal with the tenant. It's been good for the past few years now

which rental management company you using?

[Gerbs]

Originally Posted by Y2K_o__o

Wow 8 month rent behind ! how can he survive this BS?
why didn't your friend start the eviction process as soon as the tenant has not paid 2 months?

BTW, which area was your rental property that had reduce 30%? that's quite alot of reduction there

They had the no eviction notice during since March I believe? He just served the rent eviction notice but the tenant is disputing it and counter claiming for shitty wifi and other small things.

The property was a basement and a duplex suite in South Van.

[Great68]

Originally Posted by Gerbs

but the tenant is disputing it and counter claiming for shitty wifi and other small things.

Unfortunately for the tenant, they are not allowed to withhold rent for any reason other than the following:

1. The tenant has an arbitrator’s decision allowing the deduction
2. The landlord illegally increases the rent
3. The landlord has overcharged for a security or pet damage deposit
4. The landlord refuses the tenant’s written request for reimbursement of emergency repairs
5. The tenant has the landlord’s written permission allowing a rent reduction

BC RTA Witholding Rent

Your buddy should have a pretty easy win if they didn't pay for anything other than the above reasons.

[6793026]

Originally Posted by murmur

any of you having issue collecting rent? my tenant did not pay rent this month. my rental management agent told me not to worry.

i am concerned the tenant will abandon the place without paying the rent arrears.

That's not an acceptable answer. It's never their money and cost of doing business comes out of their pocket. What i'm saying is to get on their ball for feedback / what has been doing and what will be done. They are working for your money. Just be professional; ask for action update & results.

If tenant leaves, they leave. No company can help stop that. They are here to help deal with paperwork and having a layer of protection. Can't prevent certain things.

Originally Posted by jcmaz

My family had to evict people a couple times due to renters not paying their rent. Expect around 2-3 months of paperwork processing and waiting before you can kick them out.

I slap the paperwork 5 business days regardless of excuses. You CAN always withdraw and as long as they pay, it voids the order. You can never be too early, i have been late in doing so and it sucks A LOT.

[donk.]

Originally Posted by Gerbs

They had the no eviction notice during since March I believe? He just served the rent eviction notice but the tenant is disputing it and counter claiming for shitty wifi and other small things.

The property was a basement and a duplex suite in South Van.

"shittt wifi, so im not gonna pay"
Blows my mind.....

Thats like going into a restaurant, and saying your not gonna pay because the wifi is down that day.

Oh right, i forgot about the batshit renter protection act in canada.

[ImportPsycho]

i'm back in rental market due to selling my TH and having 6 month gap till new TH completion.
I forgot how shitty some landlords are.

in-suit laundry, but can only use 2x a week.
monthly unit inspection

asks me if I have stable job, I say I have pandemic proof job cuz I WFH.
tells me i have to pay more cuz WFH uses more electricity

lol common.....

[twitchyzero]

the laundry part i get (people throw a single pair of shoes into dryer for a whole day

the inspection and wfh premium though

they should just split the utility bill

sorry to see such shitty tenants...doesnt the typical vancouver listing pre-pandemic have a line-up of applicants to choose from?

[mikemhg]

^Don't even bother. That guy will be your nightmare, you'll end up moving within the year.

[TouringTeg]

Monthly inspection. I wonder if they have been burned in the past.

I did a random inspection to check the "smoke alarm batteries" and found an international student had been given a room with a hot plate without my knowledge. I evicted them. (There were other various issues including ongoing noise complaints with neighbors).

[BIC_BAWS]

Originally Posted by ImportPsycho

asks me if I have stable job, I say I have pandemic proof job cuz I WFH.
tells me i have to pay more cuz WFH uses more electricity

lol common.....

My entire family is now WFH/School FH. Electricity bill is only like $90/billing cycle for a whole house

[Y2K_o__o]

Originally Posted by ImportPsycho

i'm back in rental market due to selling my TH and having 6 month gap till new TH completion.
I forgot how shitty some landlords are.

in-suit laundry, but can only use 2x a week.
monthly unit inspection

asks me if I have stable job, I say I have pandemic proof job cuz I WFH.
tells me i have to pay more cuz WFH uses more electricity

lol common.....

lol.... shouldn't they already factor this in rent? I rather have a pandemic proof job tanent...
This landlord is just creating more problems for himself

[Y2K_o__o]

Have been recently looking at 2 bedroom near metrotown area.

Seems the price have dropped significantly for new concrete apartment at Bennet St & Silver Avenue, but still 2 bedroom are still mid 700K.. What an average family can afford to rent is roughly $2200.....

How can landlord breakeven with mortgage, strata, insurance, property tax...? especially these concrete strata is like $400 a month..?

[JDMDreams]

They should be doing ok if they picked it up at presale for $550

[68style]

I don’t understand how landlords break even these days either, I bought my 1+den way back at $360,000 and it’s worth like $500k now... rent in my building is decently high at $1600-1700 a month for a 1 bedroom and even at the price I bought at with a fair sized down payment I’d barely be be making a surplus with all the fees and taxes... there’s no way someone buying at $500k is making any money on rent.

Yet the place next to me did exactly that, bought it at peak market about 1.5 years ago and been renting it since day 1... maybe they just find it acceptable if someone else is paying their mortgage for them and they eat the ancillary costs???

[twitchyzero]

paid off in offshore cash

[JDMDreams]

^^^ well what choice do they have? If they don't rent it out there's zero cash coming in.

[soymilk]

Originally Posted by Y2K_o__o

Have been recently looking at 2 bedroom near metrotown area.

Seems the price have dropped significantly for new concrete apartment at Bennet St & Silver Avenue, but still 2 bedroom are still mid 700K.. What an average family can afford to rent is roughly $2200.....

How can landlord breakeven with mortgage, strata, insurance, property tax...? especially these concrete strata is like $400 a month..?

Very doable for folks who bought prior to the huge run up in condo prices. Currently I'm cash flow positive about $600 month. 2bed/2bath - 906 sq ft with monthly strata at $307. This was a presale which I completed back in 2015.

[68style]

Originally Posted by JDMDreams

^^^ well what choice do they have? If they don't rent it out there's zero cash coming in.

... not buying it in the first place? lol

[JDMDreams]

^^ but they are building equity and interest rates are dirt cheap. Unless you take a massive risk I don't think the average person can outperform the gains with investments.

[68style]

That depends totally and entirely on the future market price of the place and interest rates remaining low... so you're still guessing like you would be on the stock market or BTC or something... just with a much much much less movable asset.

I mean, I am ok with someone paying like 70% of my investment off for me at the end of the day (way down the road), but not really as okay when I have to lock like $100k+ into it to start.

I'm not saying it's wrong... but damn it's a bit more risky than I'd be willing to go considering you're buying at close to the top of a possibly teetering market... and a shit tonne of work renting out and dealing with issues, repairs, etc. for 10+ years nevermind any natural disasters that come up

[donk.]

Dont need to profit on the rent

Even with a 80% mortgage:
30% of the "monthly rent" goes towards principle, even if your at a 100-200$ "rent loss per month"
Then the property value increases x% a year and your good to go