Hi Scott, We’ve heard you read our forums, so we invite you to go beyond reading and come on board to discuss some things with our members.
See, some of our members have some questions for you. As small business landlords, a lot of us have watched your show Income Property. This leads us to some questions.
For example, on a show on Tuesday night, 9 pm (the marathon) a woman and her mother own a little brick townhouse. The daughter was going to England for a while to see her fiance. It’s not a sure thing (the marriage or whatever.)
She didn’t know what to do with her townhouse, which has a mortgage of $2800/month. The area looks a little rundown. What do to? Call….Scott McGillivray with the cameras rolling.
Immediately you told the ladies:
1. Why not make it a short-term rental!! Sign 3 month leases!!
2. It can be an ‘executive rental’ and rent to high paid executives!!
3. It will rent out for $2800/month…covering your mortgage which is $2800/month!!
4. We can spend $14,000 to add a third bedroom…earning you $3200/month, so you’ll cover your mortgage and even make a profit!!
As experienced landlords, some of our members ask you to answer the following:
1. It’s not easy to rent short-term, especially for 3 months unless you are in a very select area. And in Ontario leases don’t necessarily end, Scott…they go month by month. What do you do if a tenant wants to stay? Why don’t you tell the owners that?
2. High end? In that area? Scott, the vacancy rate is rising in Toronto.
3. You said that the rent is inclusive. Scott, the owner won’t be brining in $2800/month. Utilities could be $400-$800/month. Why don’t you tell the owners that?
4. Rents don’t automatically go up just because you add stuff. You have to follow the market. Again, you fail to tell her about the utilities eating into that. And $14,000…she said she might move back soon. That’s a large capital expenditure!
You sure make investment property ownership exciting Scott, and that’s not just because of your pearly smile. However, there’s more to it than you often let on.
So we ask you to come on board and work with us to answer questions and better the entire rental housing environment in Ontario. And contact the people you have helped and let’s have some follow up.
After all, your show isn’t just about cheerleading clueless investors, we know that, right?
