It can make good economic sense to buy a downtown condo or two as an investment: Toronto real estate prices continue to rise, so you’re building equity – and in the meantime it shouldn’t be too hard to rent the property to a nice professional couple who won’t trash the place and won’t default on the rent, right?
The truth is that managing tenants can be a whole lot more work – and cost a whole lot more money – than most property owners realize. Even the best tenants occasionally leave holes in the walls or flood the bathroom; nice professional couples tend to move on in a year or two, meaning you have to go through the process of finding new tenants all over again; and while today’s monthly rental prices may seem high, they probably won’t cover the mortgage and condo fees on a new downtown condo.
That’s where suite management can make a real difference, especially when your condo becomes part of a corporate housing pool. Here’s how:
- Revenue. Rentals are priced on a hotel model, so the monthly rate is higher than you might expect for a regular monthly tenancy. While everyday occupancy isn’t guaranteed, on an annualized basis you can expect to earn more revenue than you would if you had permanent tenants on a year-long lease.
- Cleanliness. Because all our suites are cleaned regularly (before and after each tenant, plus weekly or biweekly housekeeping while a suite is occupied), the property is maintained in first-class condition at all times and any issues are promptly identified and addressed.
- Repairs. The provisions of Ontario’s Landlord and Tenant Act say that landlords can’t enter a property without the tenant’s permission, so it’s possible for tenants to do a lot of damage before a landlord is ever aware of the problem. Because our suites are inspected before and after each (short-term) guest, repairs are done quickly – before they have time to turn into something serious.
- Risk management and administration. Suite management companies like TLG manage the property, handle bookings and payments, and provide you with monthly and annual reports.
Want more information on how your condo can become a TLG suite managed property? Click here.