Mississauga Real Estate | Buying a Home in Mississauga

Short of finding a good rental home to pursue, the most important decision a home-renter will likely make is selecting a good property manager. Like an employee, it is absolutely worth the time to thoroughly investigate and interview. In fact, it may be helpful to consider a property manager or property management company as just that, an employee.

These are the individuals that will be stewards for something very expensive, very worthwhile, and very versatile.  A plethora of legal considerations, property codes, and Home Owners Association criteria need to be considered, to the degree that anyone who works full-time and rents/owns property needs to hire someone to proactively care for these assets.

When employment superiors and administrators go into an interview, they are almost always equipped with specific, well-thought questions and scenarios in order to test the readiness and capability of a potential candidate. Going along with this metaphor, here are questions an employer (home renter) should ask when potentially hiring an employee (property manager):

How much do you need to be paid, and is that price warranted?
Both individual managers and property management companies tend to utilize a monthly fee for their services. To give a ballpark estimate of how much they should be charging, percentages typically range from 5% to approximately 20%. It goes without saying that frugality is important, but also remember that you get what you pay for. Using a median amount between the two extremes is a good starting point.

Are you skilled and experienced at the tasks needed for this arrangement?
Maintenance, repairs, and yard work are some of the ‘bread and butter’ tasks associated with property management. It is important to know if a maintenance crew is directly employed, or if they contract that work out to some kind of handyman or other service. Significant ramifications exist within this distinction: How much do they cost? Are they equipped to handle everything involved with your land or home? What happens if or when they’re not? In addition, you need to know how hands-on you want to be in regards to more expensive work, and enquire as to their willingness to keep you in the proper loop.

How would you handle an extended vacancy? How about an unexpected eviction?
Good employees step up to the plate when bad things happen. To the degree to which they rise to the occasion says a lot. If a vacancy were to go longer than anticipated, you need to know if some type of fee or charge would be coming your way, and what that would be. Same thing with evictions: If that were to occur, what out-of-pocket money would you have to forfeit?

Do you have the accounting and monetary habits that gel with how I want to exchange funds with you?
With the usual primary motivator being profit, it is important to clearly lay out exactly how those profits will be collected, and how liabilities will be paid. Things as simple as the date each month you’ll receive payment, whether it will be via check or other money form, and if they have some reserves to survive temporary hardship are often overlooked, to the detriment of the rent. Advertising factors into this as well, in that if a vacancy is trying to be filled, money will be exchanged more frequently in order to find a renter.

Written by Clif, freelance writer for RPM East Valley.

Real Estate can be a very sound investment, and the long-term benefits are very attractive. However, you need to take steps to ensure that you get a sound investment rather than a money pit that is only going to be a nightmare. Here are some signs to watch for when you are searching for a good investment property.

Know the Area
Location is everything, and properties near good transportation links and attractions will fetch a higher rental amount than more isolated properties. Before making the investment, do some research on real estate sites to see how much rentals in an area are typically going for. Potential renters are future buyers are going to want shopping that is reasonably close, and they will be more attracted to properties that are near jobs and local attractions.

Overall Cost and Rate of Return
Your rate of return is determined by more than your purchase price. You also have to look at the repairs, renovations and upgrades the property needs. Every dollar you put into the property delays the time when you will start seeing a profit, but you may have to invest money to prepare the structure. If you are going to do the work yourself, then you should also take your labor into account. The best deal can wind up costing too much if it needs extensive repairs, has foundation damage or needs to be fully updated and remodeled. It’s also important to factor in the money that will be spent on future repairs and updates.

Local Vacancies
In addition to examining the building, you should examine the surrounding area for excessive vacancies and fresh listings. If other buildings in the area are not moving or renting, then the area could be on the decline and any property investment in that part of town is likely to prove troublesome. Look at the history of property values in that area. Buy in areas where values have risen or held steady, and avoid any areas where property values are gradually declining.

Quality of Construction
Don’t make the mistake of looking just at the paint and colors on a house. What you really care about is the quality of the construction. The foundation should be solid, and the construction materials used should be a higher quality. Look for a simple design and good floor plan that flows naturally from one area into the next. When a house is solidly designed and constructed, it will not require as many repairs over the coming years. The surrounding yard also matters. While you may not be too worried about the landscaping right now, you do want to make sure that the yard does not get too wet after the rain and that there are no other serious issues with the gardens.

Before making any investment, it’s wise to carefully examine the property. You are going to look at more than just the basic architecture and floorplan. Consider the quality of construction, potential problems with the yard and the repairs that need to be made. Location is everything, so pay careful attention to the surrounding areas, and take the time to research historical real estate information to see if property values are on the rise or are slowly falling.

Featured images:

•  Image by Smart Photo Stock

Lucy James writes for www.findamortgageonline.co.uk, a UK based whole of market online mortgage broker that can help you find the best mortgages around the world.