Property Management for Condo

[msommers]

So I just got back from having no communication for the last 1.5 months and my tenant has decided they're moving to the other side of the country, for what I think are actually valid reasons.

He's signed a lease for a year until the end of next April, so still has quite a bit of time left on the lease. I'd be totally fine breaking the lease early when I found someone suitable to replace him.

However the only reason my condo is available is because I'm moving to Edmonton for school, which is actually happening next Saturday. So I've got basically a week, maybe, to find someone for October.

He sounds sympathetic to my present situation and also the legal situation he's in. However I know that he can just take his stuff and peace out without paying me anything and then I'd have to pursue him across country to collect. Or worse ruin things for no reason. He doesn't seem like type but you never really do know.

The only feasible way I can see finding someone for October is coming back every weekend in September and selecting someone, potentially. I'll be working and in grad school, I won't have much spare time.

So I feel like my only option is to find a management company and let them deal with this, at a cost of 10% of the rent. However since I rented I see other units in my building renting for less than what I have him in here for so I'll be down even further than before.

So I'm looking for recommendations on what companies are out there that you know of or use, or even general advice on the situation.

Matt

[A790]

How much can you afford to spend on the unit?

A lot of rental places charge a tenant placement fee (in the $500ish range) and then 10% of the monthly.

[Feruk]

I would bet that the lower rent and over 10% will wipe out any monthly profit you would've had. So the question you have to ask yourself is whether this is really an investment you want to continue holding. Unless you believe real estate is gonna continue to do great in Calgary, or you want to live in the place when you return from Edmonton, I think our best bet is to dump it.

[msommers]

At the moment the rent I'm charging covers mortgage, property taxes, insurance, and condo fees plus like maybe $30-40/month, so lets just call it more or less breaking even. The thing I'm well aware of is if I go the P/M route, I'll be losing probably ~200+/month having someone in there. Obviously not ideal. However the thought of selling seems too quick. I've only owned the condo for 2 years, I just can't see it being worthwhile to sell to cover all the realtor and legal fees without taking a bath on it. Plus I suspect when I'm done school I'll be back in Calgary in 2 years and can re-evaluate where I'm at.

The ideal solution here would be that a family member helps select tenants and I make occasional trips down when things are becoming more formalized. My fear is that we run the risk of a tenant flying off again, and the search happens again while I'm away. The easiest route I see is having a company deal with that, but at a lose to me.

I need to look more into how much responsibility the company carries, ie: they select a tenant and they bail, or damage things, or don't pay rent, etc. As a service it makes sense to me that these things are their responsibility but never assume.

[CanmoreOrLess]

I'd not be selling your place. In this market you'll be losing money and I think you've just put some work into the unit to get it up to your standards. You'll need a Calgary place in a couple of years anyways, by then oil will be back at $70.

In 2010 I rented a managed unit owned by an executive at Shaw Cable, he had Foundation Property Mgt. looking after the place. The management company was good to deal with and quick to return phone calls. When the lease expired and we were doing the final inspection Greg actually pointed out how the kitchen sink was not perfectly clean (SOS pad advised). I thought this was proper attention to detail, just what you want in a management company.


Greg Courage
Foundation Property Mgt.
1 (403) 889-7496

http://foundation-pm.com

[A790]

We used Mtn Park (www.mtnpark.ca) and really like them. I'd recommend them for sure

[msommers]

A close friend recommended them also. Another passed on the CEO's card of Hope Street.

My mom has actually offered to deal with it now that she's retired but application and interviews can be a pain in the ass to deal with, which I don't really want to put her through.

[gwill]

Applications and interviews are the easy part IMO. The only downside to renting the condo is having to show the condo a few times before finding the right renter but since your moms retired then it's not such a big deal.

If you need some credit checks done on potential renters send me a pm. I always have a friend run them for me for only $10. Or you can go through all the paperwork and hassle to be able to run them yourself.

[skandalouz_08]

My friend is one of the owners of Mountain Park. PM me if you want his info.

[CanmoreOrLess]

Originally posted by msommers
A close friend recommended them also. Another passed on the CEO's card of Hope Street.

My mom has actually offered to deal with it now that she's retired but application and interviews can be a pain in the ass to deal with, which I don't really want to put her through.

I'd avoid Hope Street, they have a rundown complex in my area. The grass remains in need of a mow, garbage on the lawn and in general disrepair and junkie looking.

[msommers]

Great info guys, thank you!

[Mitsu3000gt]

Whatever you do, don't use Gateway Property Management. That is all.

[Davetronz]

Originally posted by CanmoreOrLess
I'd avoid Hope Street...

+1
Pretty bad company. Read their reviews online and make an educated decision.

[msommers]

Have the ball rolling with Mountain Park. Too early to tell but so far quite professional.

[jdmakkord]

Stay away from hopestreet. I had nothing but brutal experiences with them.

[R-Audi]

What are the typical rates for this? I have been renting out my own for many years, but it is a pain in the ass...

[Xtrema]

Originally posted by jdmakkord
Stay away from hopestreet. I had nothing but brutal experiences with them.

Rule of thumb, if you have to advertise on radio, it's not good.

Originally posted by R-Audi
What are the typical rates for this? I have been renting out my own for many years, but it is a pain in the ass...

Fee for every turnover + 7-10% of rent monthly.

[BMDUBS]

Originally posted by Mitsu3000gt
Whatever you do, don't use Gateway Property Management. That is all.

Amen to that!

[msommers]

Prices at Mountain Park are $600 to get everything rolling and a tenant in, and 10% monthly rent thereafter.

Have heard good things and connections to the company put my mind at ease. Their pricing is on the better side of things as well.

[Sugarphreak]

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