BlueKey Property Management

Many investors who are interested in substantially diversifying their portfolio while maximizing profitability consider buying rental properties at some point. Commonly, new property investors get their feet wet with a single-family rental home or a rental duplex. Some investors are satisfied with one or two residential real estate investments, but others are eager to take their real estate investments to the next level. If you have been thinking about venturing into the realm of investing in properties, there are a few good reasons why it makes sense to build a solid portfolio of multifamily rental properties.
Increasing Passive Income
Multifamily rental properties have the ability to generate higher levels of income for investors over the years. Rental rates are generally determined by market conditions in the local area, and these rates can fluctuate based on many factors. However, overall, a well-managed and well-maintained apartment complex will produce higher levels of income through a general increase in rental rates over time. Selecting a reputable and experienced property management company to assist with daily operations is a great way to promote profitability without having to take an active role in managing your units. Remember that this is net income that is generated on a regular monthly basis, and it is net income after the mortgage payment has been paid. As you add more multifamily properties to your portfolio of investments, your ability to generate increasing levels of passive income can potentially multiply over the years.
Income Derived From Multiple Units
One of the risks that keep some investors from buying rental properties is the possibility of financial loss related to vacant units. With a multifamily property, the income is derived from multiple units. There is not a single unit that generates all income to cover the mortgage payment and overhead. There are typically always going to be at least a few vacant units related to regular turnover when you own an apartment complex. However, a typical multifamily property in a great market with smart financing in place will produce a profit even when the occupancy declines through periodic market fluctuations and turnover. Because income is derived from multiple units, the risk of operating in the red on any given month is diminished.
Diversification
Multifamily rental properties can provide you with the incredible benefit of diversification in different ways. First, most property investors hold liquid or semi-liquid assets in various types of accounts. This may include a savings account, a non-retirement stock account, a retirement account and more. Real estate is simply another type of asset that diversifies the portfolio. In addition, when you add more properties to your portfolio over time, you are diversifying this specific aspect of your investments.
Equity Appreciation
Income-producing property is one of the few investment vehicles that can throw off substantial and regular income while also appreciating significantly in value. Your properties’ equity increases in two primary ways. One is through value appreciation related to market conditions. The other way is through debt reduction. Leveraging your properties gives you the ability to enjoy full equity appreciation based on the entire value of the property while only contributing a fraction of the funds yourself. More than that, the mortgage balance is reduced regularly through your tenants’ rental payments. These are powerful benefits that can increase your net worth substantially over the years. These benefits are magnified as you continue to make smart multi-family purchases that expand your portfolio.
Tax Benefits
Another excellent benefit associated with multifamily investing relates to tax benefits. All income is taxed in various ways, but this type of income is taxed based on the net income that is produced. All operating expenses, including property taxes, mortgage interest, property management, property improvements and maintenance, are netted out. In addition, you can also subtract depreciation from the net taxable income figure.
Accumulating a solid portfolio of investment properties makes substantial sense for those who are interested in increasing net worth and diversifying an already expansive portfolio. Remember that a multi-family property manager can be hired to assist with daily operations, and this can make investment properties a passive income source for you. You can also reach out to a Realtor for assistance with the selection of exceptional investments. It may be wise to begin investing in multifamily properties by selecting a smaller property. You can expand your portfolio as your experience with this type of investing activity increases.
Get started with a FREE consultation by calling our property management specialists today BlueKey Property Management 226.980.9807

Founded by a property investors, BlueKey Property Management has established itself as one of London’s fastest-growing Property Management firms. Our client-first approach, coupled with a technologically focused workflow, helps to build and maintain excellent relationships with our clients. At BlueKey, we truly know the area and understand the importance of getting a qualified renter quickly. Our team has over 35 years of professional experience in the Forest City, and our company maintains an “A+” rating with the Better Business Bureau. With BlueKey Property Management, there are no hidden costs or fees. We offer flat-fee services with money-back guarantees and strive to provide complete transparency in all of our transactions.
Call us today and inquire about of 3 months free Management 226.980.9807
www.bluekeypm.ca

From our family to yours, we would like to wish you a Happy Canada Day! ❤️

PART 5 of 7 - HOW TO SCREEN TENANTS

Bad Employees Make Bad Tenants

When landlords bother to talk to applicants’ employers at all (which is less common than you’d think), they often simply confirm income and employment and leave it there.

But direct supervisors are a gold mine of information about prospective tenants. Do they show up to work on time every day? Or do they drag themselves in 20 minutes late, nursing a hangover and reeking of alcohol?

Do they always complete projects and tasks on time, or are they routinely behind schedule?

How proactive are they? How conscientious are they? In a word, how responsible are they?

PART 4 of 7 - HOW TO SCREEN TENANTS

Conduct a Credit Check
A credit check will reveal information about the tenant’s credit history for the past few years. You can order a credit score and credit report from Equifax or TransUnion. Ideal tenants that most landlords look for have a credit score of 620 or higher.
However, anyone looking for background and credit information on someone else must adhere to the Fair Credit Reporting Act (FCRA). If you are not careful, you will violate FCRA laws without knowing it. In addition, credit reporting agencies (CRAs) might require landlords who are looking for credit information to be accredited. This could involve an actual visit to the rental property to ascertain that the request for credit data is genuine.
Here are some of the things to look out for when reviewing a credit report:
* Credit history – Check for evidence of collection accounts, late payments, and bankruptcy.
* Current debt – In case the potential tenant has numerous loans, he/she might not be able to make the rent payments.

PART 3 of 7 - Perform a Background Check

As part of your tenant screening checklist, be sure to run a thorough background check. There are several companies that can provide detailed reports using the prospective tenant’s social security number. The tenant background check should check for information such as:

Public records – Avoid tenants that have been sued in the past for unpaid child support, unpaid rent or any other financial issue.
Eviction – If someone was evicted from their previous residence, be wary about allowing them to rent your investment property.
Criminal records – A tenant with a serious or long criminal record could expose you and other tenants to danger.
Related: What Landlords Need to Know About Filing an Eviction Notice

However, don’t be quick to dismiss a tenant just because they have a criminal record. Ask yourself the following questions before making a final decision:

How old was the tenant at the time of offence?
What were the circumstances surrounding the matter?
When was he or she released?
Were there any rehabilitation efforts?

PART 2 Of 7 - HOW TO SCREEN TENANTS

2. Ask for an Application

The next step after pre-screening is to request all the potential tenants to submit an application. The application form should cover all the important details you will require from the tenant. This includes personal information, employment information, and financial information. Be sure to mention that a credit check might be required. Some of the details that should be captured in the form are:
* Previous and current employer
* Current income level
* Contact information for previous landlords
* Financial data such as credit cards and bank accounts
* Number of occupants (including pets)
* Personal references

The success of any income property is determined by the kind of tenants that live there. If you have good tenants, you will not have to worry about the safety of your rental property or the payment of rent. However, a bad tenant will be a source of endless stress. To avoid trouble, you need to learn how to screen tenants for a rental property properly before letting them sign a lease. You can either carry out the screening yourself or hire a property management company This will enhance tenant retention and make owning a rental property less of a headache. This week we will provide you 7 essential steps on how to screen a tenant.

1. Pre-Screen Potential Tenants
Even before asking potential tenants to send applications, look for ways of pre-screening them. One of the best ways of doing this is by checking their social media accounts. If the tenant displays undesirable behaviour on their Instagram or Facebook accounts, they are probably not a good candidate for your investment property. Besides social media, you could simply Google the name of the prospective renter. You might just stumble on some information which could prove helpful.
Consider asking applicants a few pre-screening questions or even adding them to the application. The answers to these questions may save you the hassle of doing a full background check.

Rent Guarantee
At BlueKey Property Management we are proud of our residential property rental and management services. Our success to date has been facilitated in part to the rigor placed on tenant screening to ensure the best candidates for your investment property.
We understand that Property Management involves the personal lives of tenants and unfortunate events happen, which may affect a tenant’s ability to make rental payments – even when everything possible has been done to mitigate the risks.
– People’s physical and mental health is not guaranteed
– Your relationship status can change
– Economic conditions impact employment careers and businesses alike
We also understand that for some property owners’ non payment of rent may have significant financial impact on their ability to meet financial commitments (such as: mortgage payments, property taxes, condo fees, utilities…) when rental payments are missed and the eviction bills start piling up.
If sleeping well at night to you means this extra piece of mind knowing that rent will always come in on time regardless if the tenant pays or not and in case of an eviction associated costs are paid for.
Then make sure you ask about the Rent Guarantee program to complement your subscription to our residential property rental and management services:
How does the Rent Guarantee program work?
If a tenant defaults on monthly rent payment the Rent Guarantee program gets in affect.
– We ensure you receive your share of monthly rent payments for up to 6 months or until the situation is corrected whichever comes first
– We also pay for eviction costs if the situation is not resolved through mediation
Go ahead and contact BlueKey Property Management today for your free, no obligation consultation – we look forward to service you.
Call us: (226) 980-9807
Rent Guarantee is available for qualified properties and where BlueKey Property Management placed the tenant.

BlueKey Property Management doesn’t just take good care of your investment. We take better care of it. Our highly experienced property management team invites investment property and building owners to a world where every last detail is our first priority. All the physical and financial aspects of your investment: handled. Routine and preventative maintenance and day-to-day administrative details: covered. In-depth, monthly financial reporting: delivered. Peace of mind is what you pay us for.

Vacancy is EXPENSIVE
An effective marketing strategy can be the difference between the success and failure of your business. Great products fail without great marketing, while fantastic marketing campaigns can turn horrible products into gold mines.
Market Before Tenant Moves Out
Ideally, your tenant will give you at least 60-day notice before moving out of the unit. You should start marketing the unit as soon as you receive this notice. This will give you the best chance of avoiding a vacancy. Even if the tenant still lives in the unit, they must allow you to show the unit to prospective tenants as long as you give them proper notice, which is usually between 24 hours.
Sitting on a vacant unit for months is every landlord’s nightmare. No rent is coming in, but you must still pay carrying costs and market the unit. The faster you can get that unit rented, the faster the money will come rolling in.
Extend Lease at a Discount
People move more frequently in the warmer months. Those with children will often wait until the school year is over to move, especially if they are changing school districts. Therefore, it is usually more challenging to fill a vacancy in the winter months.
To avoid having a vacancy in the winter, you can offer your current tenant a lease extension at a discounted rate. Of course, they may not agree to it, but it is worth a shot.
As an example, your tenant has given you notice that they would like to move January 1. Their rent is $1000 a month. You can offer them a three-month lease extension at a discounted rate of $950 a month. If they accept, you avoid a vacancy in the heart of winter and have an extra three months to get that unit rented for April 1.
Filling Vacancy Quickly vs. Quality Tenants
The ideal situation is to fill a vacancy quickly with a quality tenant who is going to pay their rent on time and not cause any problems. Although you want to fill the vacancy quickly, putting in the wrong tenant can actually cost you more money down the line than a one-month vacancy.
Failing to conduct the proper screening procedures can leave you more susceptible to tenants who are not going to pay their rent and may cause damage to the property. Evicting a tenant can be as much as a two-month process, and you will likely not be receiving rent during this time. Putting quality tenants in your rentals from the beginning is of the utmost importance.

We WANT YOU!!
If you have a property that you are having difficulty renting or the hassle of finding qualified tenants has become just too much of a headache call or email us.
We are a locally owned and operated property management firm. We work with many clients from local organization and companies and I’m confident we can find the right tenant for your property.
In this day and age time is money, and your time can be more profitably spent at your day job or finding other investment properties instead of taking calls and showing your property. And in the event you find a tenant, finding the wrong tenant is more expensive than an actual vacancy.
A bad tenant could result in unpaid rent, eviction costs and extensive damages can add up to thousands of dollars. You do not make money when the property is vacant, but you can actually lose money if you lease to the wrong tenant. Getting the wrong tenant in the property is the biggest money loser that there is!
We are diligent in our policies and procedure of renting. We have a strong applicant base of potential
tenants looking to rent; which means more success in finding the right tenant for your property. We take the time to carefully screen and verify all the information presented to us. We conduct credit checks and we fill out the proper forms and documents to help prevent any legal issues in the future.
Whether you have only one unit of multiple units, we treat each unit as if it was our own and we take pride in finding you the RIGHT tenant!
We are committed to finding you qualified tenants and providing you with friendly, professional service! WE WILL GET YOUR PROPERTY RENTED!
Please visit our website or call me for a FREE consultation! www.bluekeypm.ca
We would love the opportunity to discuss our services. We look forward to hearing from you and welcome the opportunity to rent and/or manage your property.