Do you see the potential in the regular income stream of a rental property, but are frustrated with Vancouver's low cap rates that make positive cash flow seemingly impossible?
Investing outside of Vancouver may be your answer...
1) "But Justin, I don't want don't want to hire an expensive property manager."
You don't have to and to be honest, I don't recommend it.
Instead, create a positive relationship and establish good communication with tenants from the start. Not only will this help keep tenants long term, but it will also keep you informed about what is going on in and around your rental property.
2) "What if there is a plumbing emergency?"
Call a plumber. Most neighbourhoods have a Facebook group. Join it. These will be great spots to find recommended tradespeople. And when you do find a good contractor, keep a good relationship with them. Pay them right away. Once you have a list of tradespeople that are approved, give that list to your tenants for emergencies (this is especially true for plumbers.) Give them the go-ahead to call the plumber in the event of a midnight plumbing emergency.
3) “Who is going to meet the tradesperson to let them in?”
Keyless Entry Keypad Deadbolts are the answer. Put a master code in for yourself, one for the tenants and then a few other ones for tradespeople. They aren’t even that expensive (around $160 for a decent one.)
4) “What about collecting rent?”
There are sites that you can use that will provide your tenants with auto withdrawal. Also, e-transfers work just fine.
5) “How will I find tenants?”
Advertise on Craigslist, Kijiji or the neighbourhood Facebook group (sometimes there is one exclusively for renters.) Hold an Open House (yes, you are going to need to travel for this part.) The great thing about connecting with tenants on Facebook is that it is easy to do an initial background check on them.