All Forum Posts by: Chris Baxter

@Ryan Martin  what are you planning on doing with the property? Is it a flip, buy and hold, something else?   The contractors that I know are still working, with some delays in getting materials and restrictions on how many people can be at a site.  My PM is still filling vacancies as they come in, and realtors are in need of income. Lawyers are still working, and documents can be signed remotely.

I personally feel that we are in a holding pattern as the market and economy await the changes to come.  Our federal government released virus projections today that imply we are in this for a few more months at the least. I believe this will eventually drive prices down for many RE asset classes, so I am getting ready to act when the timing is right. 

It's absolutely critical to spend time in province to build relationships and to fully understand the market.  Many out-of-province investors believe that they can just pick up the phone, find a realtor, and ask for deals... that's just not how it works if you want to be successful.  Once the team is in place, the distance doesn't matter; we are all looking out for each others' interests. My PM and realtor know what properties fit our portfolio and will send these to us for evaluation.  I travel to the area a few times a year to maintain connections, but otherwise have no need to be there.

We invest in MF in New Brunswick... landlord friendly (no rent caps), low vacancy, and low price  per door.  I can't bring myself to invest in the USA with the current POTUS that makes decisions on a whim. 

Hello Ryan,

Metro Vancouver is not a great place to invest for cash flow unless you really want to under-leverage (i.e. large down payment).  Our biggest challenges are 1) tenant friendly (impossible to increase rents to keep pace with market) 2) High price per door 3) Poor rent to price ratio 

If your approach is to gamble on appreciation, Metro Vancouver may be a fit, but I've found better overall returns elsewhere.

Quite happy to report that we got 100% of our April rent.... very odd as, similar to @Anthony Wick , I've never had 100% paid before the end of the first day of the month.  

Thanks for sharing @Anthony Wick and @JD Martin.   It does seem like there are two prevailing schools of thought on these forums: 1) pro-actively reach out to tenants to start the discussion  2)  keep silent until rent is due and then address any missing rent with tenants directly.

My PM for MF buildings has encouraged option 2, and I believe strongly that it's the correct strategy for my situation.  For LL that have a more direct / personal connection to their tenants, perhaps option 1 would be the best strategy.

I'm optimistic that we'll see 75% rent paid on time , and collect the rest gradually, at least for April.  I am looking forward to hearing more about various LL experiences over the next week.  

@Danny T.     The average tenant has no idea who owns the property they live in.  They assume it's 'the man' ... a large,faceless corporation with unlimited resources.  Rental strikes empower the powerless. Unfortunately, 75% (give or take 10%) of properties aren't owned by institutional investors, they are owned by small investors (<50 doors portfolio) that can be severely impacted by rent strikes, even with reserves in place.  Media isn't helping... 

I would move ahead with the deal, assuming it met your criteria in the first place. You may be able to negotiate a better deal if the current tenants don't pay rent on April 1st, assuming of course you also have a clause for verification of rent roll...

Since you have until the 3rd, see what your existing tenants do and confirm rents on the 5-plex were paid. 

If you do walk, I'm positive there will be more opportunities in the coming months when over leveraged landlords are forced to sell out of necessity or fear.

Have you considered markets outside of Ontario (which is overly tenant friendly)? 

I think you answered your own question.... "it's like they think we are all wealthy, greedy and don't care about others which of course is completely false. "

When was the last time you saw a media piece about good landlords or about the function they provide in society?  It just doesn't happen.... instead, we hear sob stories about how tenants are suffering at the hands of their evil landlords and governments step in to provide 'protection'.

I think one of the big challenges is in the messaging...

• State/provincial government says "tenants can't be evicted for non-payment of rent"
• Tenant hears "I don't have to pay rent and will focus on paying for other needs/wants first"

In the jurisdiction I invest in, the government has mandated no eviction through May 31.  I'd like to believe that all my tenants are good people and that they will pay their rent if they are able to, but we all know there will be some that take advantage of the situation. There are many communities advocating for a "rent strike"; obviously evil landlords are all wealthy and this is the opportunity to take it to 'the man' at the expense of all of us who provide homes for people to live in.

The governments need to step in, and advocate personal responsibility not just in social distancing but in meeting your obligations to creditors.  We all know this isn't going to happen, which is why concern is starting to surface in the forums.