Mark Vosylius, Barrie, Orillia, Ontario

Misconceptions of Landlord and Tenant Rights for Ontario Real Estate Investments

I recently had a discussion with a client about residential leases and landlord rights. It seems there is some misinformation regarding the rights of the tenants, and the rights of the landlord while drawing up a lease for tenants for an investment property.

This can be resolved in one fell swoop, The Residential Tenancies Act 2006. In a nutshell the Act supersedes all written leases that we as landlords draw up and have our tenants sign.

The ACT IS YOUR LEASE.

What I mean is that although you can stipulate post-dated cheques ( for example) as a requirement before a new tenant moves in, it is not in the act and therefore can not be forced. If you were to end up before a tribunal, the judge would refer to the act, NOT YOUR LEASE to determine guiding arbitration.

And in some cases having a lease inhibits the landlord. The lease is actually there to protect the tenant, not the landlord. Having no lease actually means that your tenant is on a month to month lease. The tenant’s term is “one month”. Most leases are for a year or more, which means the term of the contract is for one year. You, as the landlord must honour that agreement and keep the tenant there for the full term, even if they do not pay the full amount. As well if you were required to move into your rental property and you had a long term lease in place, then by law( the Act) you have a contract with your tenant for that full term. If you have no lease in place, then the Act is your lease and the tenant is automatic ally on a month to month term. Which means that if they pay rent every month then you are obliged to fulfill that one month term.

Simply put, the Tenant Act of Ontario over rides all written leases when arbitration is required. A month to month lease ( where there is no signed lease in place at all) is more flexible and therefore more beneficial to the landlord should a problem arise.

Something to keep in mind when renting your investment properties.

If you have any questions about tenant management and renting real estate investment property in Barrie, Orillia and Innisfil contact Mana Investments and Mark Vosylius- 705-812-1033

Once again CREA states that Canadian real estate ( home) prices have risen and because of that adjustments upward are required for the next 6 months. They say that these adjustments are due to the recent solid price gains in Vancouver. Now I am astonished at the studpidity of that statement. CREA is fighting to maintain a certain amount of respectability from all the backlash from recent changes to commission structures, so why would they issue such a mis-leading statement to the press?

Does it help local real estate agents who can now go to their clients and say "see, look at the stats, prices have gone up again....".

Misleading public statements from CREA only diminishes their respectability. Yet these statements make great headlines so I guess the press announces it.

I am stating this only because as many of you know I claim ( as do many, many, real estate professionals) that property values are local. What happens in Vancouver has little consequence to my ( or my clients) investment properties in Barrie or Orillia. So when I read the headline in the paper that touts "Housing Prices Showing Stronger then Expected Gains" ( National Post May 10 2011) I cringe because the real estate association that I am a part of do not present all the facts and are not clearly explained to the average home owner or investor. What good is price averaging if it has no relative bearing on my listings in Simcoe County?

CREA would be a lot further ahead if it were to reflect accurate information in such press releases by showing local gains or losses in home values, not averages.

Yes it makes for great news headlines, too bad it's not really true.

For Real Estate Investing in Midland, Barrie, Innisfil and Orillia contact Mark Vosylius direct at 416-779-2897 or visit his web site Mana Investments

70 West St Orillia- Real Estate Investment For Sale

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Fantastic investment property for sale in Orillia. Only asking $219,000. Gross monthly income is 2050. Walk to all amenities in Downtown Orillia Ontario. Lakehead University is 2 blocks away, asd well as waterfront-Lake Simcoe. This investment property in Orillia provides solid tenants and parking for 4. As well as a spacious backyard with storage shed.

Financial statement are available and showings require 24 hr notice.

This cash flow opportunity and real estate investment property in Orillia is Listed by Mark Vosylius of Russo Realty ( 905)-939-7500.

You can get further details through Mark Vosylius direct at 416-779-2897

For more real estate investment opportunities visit Mana Investments

The recent news that Alberta is now the most "affordable" place to own a home only emphasizes the strength of a fundamental investment principle. And that is, The Housing Affordability Index is one of the strongest indicators for which way real estate prices will swing.

The index is available from most major banks, or you can get a recent copy from our web site here. For those of you new to the real estate investing business here is how it works. Its a ratio ( %) that takes the average income and divides by the average home price. The outcome is the percentage of money used to pay for a home.

So taking that information and applying to a property investment strategy, we can see that areas where real estate affordability is low ( 25% for example) will see a growth in demand. That is, people will be able to afford to buy a new home. If people can afford to buy a new home, then demand for housing increases, and therefore prices will likely go up. If prices go up, supply will increase to meet the demand ( in a free market economy) thus creating jobs. Jobs will in turn create more money in the local economy, decreasing vacancy rates and in turn increasing demand for housing- again.

That is a quick overview of how important and wide reaching the housing affordability index is to real estate investors. By studying the rate and seeing where housing affordability is at its lowest, you can determine where real estate investment property likely be in demand.

As it stands now, Central Ontario, Barrie, Orillia and Innsifil areas, the housing affordability index has remained relatively flat at 38-42%. Greater Toronto is pushing 45-50%. This is on the high side. Pundits and economists say that a balanced index is from 27-35%. Therefore Barrie and Orillia are on the high side for housing affordability.

What does this mean for Real Estate Investors in Ontario (Orillia, Barrie, Midland)?. If we go by these numbers alone, we will see a softening of prices because houses are too expensive for the average person. Remember, we need see the housing affordability index at 35% or below. So real estate investment properties in turn will reflect what the general housing market is doing.

Put it in practical terms, investment property prices are at the high end of the cycle. We may see a flattening out or a decline. The strategy for real estate investors in the short term is to sell ( if you want to take advantage of what the housing affordability index is saying).

Once housing affordability gets below 30 or 35% then that may be the time to buy...but right now housing affordability in Ontario is on the high side. In laymans terms, the average person will have a hard time buying a home.

If you require more information on understanding the Housing Affordability Index and Real Estate Investing, especially in Barrie, Orillia and Innisfil areas of Ontario please contact us at 416-779-2897

Or for more thorough information on all things related to real estate investment properties please visit our web site Mana Investments

Having the Bank of Montreal locate their data center in Barrie has been a plus for real estate investors. But now some more good news.....And Barrie can add another bank data center. Toronto Dominion bank has announced that they too see a future here in Barrie. The TD has announced that they will build a data center in Barrie next year....employing approx 84 people. However the building can handle up to 263, most of the 180k sqft building will house office and computer equipment.

This type of news reflects well for people looking to invest in real estate investment properties. Being recognized by banking institutions as a "hub" for data is a feather in Barrie's cap. Along with the downtown revitalization, this current trend of positive news will bode well for those thinking investing in Barrie or surrounding areas. The reputation as an area for high tech employment can only be seen as a positive fort the City of Barrie.

The building will be "state of the art" says Kevin Kessinger VP of Shared Services for TD bank.

Mana Investments and Mark Vosylius can help you achieve your real estate investment property goals by helping find local cash producing properties. For more information on real estate investing, Using RRSP for Real Estate Investing and general information on going Joint Ventures in Real Estate visit Mana Investments. or call 705-812-1033

For all homes for sale in Barrie, Orillia or Innisfil visit Simcoe Property 4 Sale.