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Weekly Renting First then Long Term Lease

UTCVenturesLtd

UTCVenturesLtd

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I have second hand information on a landlord who rents weekly initially and if he gets a bad tenant, they are gonzo FAST! No stringent eviction rules with going short term. Once they prove themselves, he will sign a long term lease.
Has anyone used that strategy?
 
I wish we had, But the tenant came with the property, they will have been there three weeks.

It sounds like it could be a good plan, but would you want to do it with every tenant?
 
More importantly how many tenants would agree to it.
The problem potentially is that less desirable tenants my be willing to fake good behaviour for several weeks or months in order to get a lease. Good tenants may simply move on to a LL that will sign a lease.
It still comes down to screening. Bad tenants will have a history that will be hard to hide from a thorough screening.
Possibly a 6 month lease might work except in Ontario where the length of the lease does not make it any easier to get rid of bad tenants.
 
I`ve been advised by some legal reps to start each new tenancy without a lease. Start it off `month by month` and issue a receipt to make it clear how much the agreed upon rent is.

Why? Because they said that it has become even more difficult to evict a tenant if they have a lease and don`t want to leave. Ontario ajudicators have been informed to do what it takes to keep tenants in private rentals and not in hostels, shelters or seeking social housing.

It`s come to the point where tenants have to `earn` a lease
 
Beeg in Ontario it does not matter if there is a lease or month to month it takes the same amount of time and effort to get rid of them.
Whether there is a lease or not once they are through the door they are a tenant with all the rights and privileges accorded to them under the RTA.
There are no loop holes for LLs in Ontario.
 
Actually I think there can be some benefits in terms of speading things up for evictions if on weekly payment terms and for chronic late payment if off lease - or ?


QUOTE (invst4profit @ Sep 7 2009, 08:46 PM) Beeg in Ontario it does not matter if there is a lease or month to month it takes the same amount of time and effort to get rid of them.
Whether there is a lease or not once they are through the door they are a tenant with all the rights and privileges accorded to them under the RTA.
There are no loop holes for LLs in Ontario.
 
The time lines can be shortened, if on weekly, however the LTB is still likely to give the tenant a second or even a third chance, through mediation, before actually granting an eviction.
Although the RTA language indicates it may be easier or quicker it ultimately comes down to the adjudicator making a judgement call which generally favors, or gives the benefit of the doubt to, the tenant.
The adjudicators are strongly influenced by there friends in the hall the legal aid reps that swarm the tenants like flies to _ _ _ _ .
 
QUOTE (invst4profit @ Sep 9 2009, 06:40 AM) The adjudicators are strongly influenced by there friends in the hall the legal aid reps that swarm the tenants like flies to _ _ _ _ .
That`s right.

Many times the legal reps are on a first name basis with "Madam Chair". And the ajudicators have to be careful.

They are only on 3 year contracts.

If the legal aid clinics start monitoring their every little `mistake` + complain about their `pro landlord bias` they will simply not get their contracts renewed.

How many Harris/Eaves people are still working at the LTB?

I`m preparing a big article on this. It`s amazing what is happening.
 
QUOTE (invst4profit @ Sep 7 2009, 06:46 PM) Beeg in Ontario it does not matter if there is a lease or month to month it takes the same amount of time and effort to get rid of them.
You are right that it takes time and effort. But no lease gives you lots more options. I don`t want to write them on here, because it is also likely monitored by tenant groups.
 
From what i understand from an accounting perspective, renting weekly would result in collecting gst although that depends on how much your business is bringing in on an annual basis.
Maybe deciding on if to go that route, it may depend on your gut feeling and who is applying. It a potential tenant comes to you with good references, then go straight to locking them in on a lease.
 
With a proper screening process in place you should only be accepting fully qualified applicants.
There is no reason to ever accept anyone that you doubt. You do not offer them week to week you reject there application.
 
QUOTE (invst4profit @ Sep 10 2009, 04:37 PM) With a proper screening process in place you should only be accepting fully qualified applicants.
There is no reason to ever accept anyone that you doubt. You do not offer them week to week you reject there application.

There is a lot of vancancies in Calgary nowadays. Problem is that there is no money to be made on an empty property. Either the landlord/investor sucks it up holding it empty and waits or might lower his expectations a bit to let a medium risk tenant rent it. It is much nicer when the vacancy rate is a near 0. A not so good tenant doesn`t want to get evicted since there is no place to go but the street in those kinds of times.
 
Risk is the key word. You are gambling with a huge investment. This is not, in my opinion, a business where you can lower your standards. Given a choice between a mediocre applicant or going vacant vacant wins out every time.
 
QUOTE (invst4profit @ Sep 10 2009, 09:06 PM) Risk is the key word. You are gambling with a huge investment. This is not, in my opinion, a business where you can lower your standards. Given a choice between a mediocre applicant or going vacant vacant wins out every time.

One can always invest in your own properties while waiting although not the ideal. Other method is to advertise heavier than the others out there. Squeaky wheel might get the grease over some of the other ads especially when it is done up nicer. When it comes to risk, typically real estate is leveraged. It is hard to diversify with the huge amounts of capital being tied up in a single project. Sometimes i wonder if it isn`t wiser to invest in a portfolio of stocks which include REITs. Then as you learn more, it appears that most of the millionaires out there made them in real estate and not the stock market. I like the contrarian way of thinking. I run towards what others are running away from. I have 3 properties in Alberta and 4 in Sask. When i saw the boom starting and moving quickly, i looked at the next areas to move before they took off and got in right away. That strategy worked very well. I find that it is hard to find jvs and those interested are usually doing their own projects solo south of the border which is where i am looking to invest next.
 
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