CASH FLOW ZONE investment properties. NOT on MLS!

[Lee]

I'm wary of Hamilton getting landlord licensing.

Lots to consider.

[lara4228]

Oh?

Maybe I've missed something? Hamilton is now having their landlords get registered?

Why does that scare you?

Lara

[JanetS]

I think many LL's here are wary (not scared) of LL licensing. It's a tax money grab as all of the issues they deal with that are important are already covered by the various bylaws in place (fire/garbage/building etc.).

They charge a few hundred up front. (this charge will make it's way back to the rental rate, for sure). The forms that one has to fill out take forever, and they have to do it annually. My sister-in-law has properties in both Hamilton and Waterloo. She has to give the name of each tenant, their car license plate (which I guess means if they buy a new car she has to be told, and do the change again). She has to have a floor plan of the home drawn up (I believe she has to show which student is in each room). She has to show what the cleaning schedule is for the tenants (good luck with that one....that is one of the most difficult things is to get students to take care of the house). She also has to show who takes out the garbage. She has one student home in Waterloo (when her kids went to school they stayed there) and 2 small single family homes in Hamilton).

But, if the garbage doesn't go out, and the next week it goes out a mess, it's not the students who get in trouble...guess who does?

And that is just the icing on the cake!

From a tenants point of view, the cost is hefty. When rents are raised at the end of the tenancy you will be assured they will be raised as much as the market can bare for the next tenant in. Somebody has to pay these costs, and for those landlords who are not making enough profit to keep up with repairs/maintenance and use other funds for that cannot take on this extra expense.

My sister-in-laws rentals have always been up-to-code...and they are always updating them (they bought them long enough that there is some cash flow there). They are retired and this is part of their income. Their income has dropped now because of LL licensing. They will be raising rents when they legally can....they had resisted raising rents, esp. in the single family homes, as they had long term tenants they liked. Their costs were more-or-less fixed for years, until this new expense came in.

[Lee]

Why does that scare you?

Lara

Things become much more serious when it's your own money involved.