GUEST POST: SELECTING THE RIGHT TENANTS WITH EMO IKEDE Landlords have taken a lot of heat in the press lately, but small landlords (often called “mom and pop investors”) are a very important component of providing affordable rental housing. Becoming a landlord is also a great way to build wealth through real estate; however, “bad tenants” can really eat into your bottom line. A bad tenant is one that: 1. Destroys your property 2. Doesn’t pay their rent on time or at all. 3. Doesn’t get along and causes problems for neighbours (confrontational, noise, garbage, etc.) In this blog, Emo founder of EjiTech Education and author of 11 Steps For Landlords To Find Great Tenants shares his top 3 tips to avoid bad tenants. 1. Prepare Your Property “You set the tone for how your tenants should take care of your property” It is important that the inside and outside of your property are clean and tidy, and that all repairs are done. This establishes the baseline of how you expect the tenants to take care of your property. So, mow the lawn, fix any broken items, and make sure the paint on the walls is good. Doing this shows you take pride in your property, and improves the perception of the value of the property in relation to the rent collected. 2. Confirm Exception When a prospective tenant (applicant) first contacts you to find out if your property is still available, it is a good idea to confirm they understand some of your rental terms. For example, if in your ad you stated that it is a non-smoking or no-pets rental, this is a good time to make sure they understand this so that you know if you should proceed to the next steps of the screening process. You don’t want to spend a lot of time on someone who does not meet your ideal tenant profile (or waste their time when you are not going to select them.) 3. Do a Credit Check This confirms your tenant’s identity, financial status, probability of paying you on time and a whole lot more. It is crucial that you do a credit check for all adult tenants.
Examples of Canadian companies you can use to run credit checks are SingleKey (www.singlekey.com) and Naborly. (www.naborly.com) For a full list of rules to review prior to making your decision to enter the investment property industry, Nova Scotia provides a full guide with specific regulations for our area. Starting your landlord-tenant relationship on a solid foundation can make a huge difference in maintaining your investment portfolio.
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Small business shoutout: Sprout dwellings If you’ve been looking to have an office or additional living space added to your current property, we think this interview with Sean Kirkwood of Sprout Dwellings is for you. Q: What's the story behind why you started your business When COVID-19 entered centre stage in 2020, it sent the world scurrying for the safety of their homes, it brought offices to dining room tables, and it highlighted the need to have a housing solution for family members where familial support and privacy could exist hand in hand. The real estate market was also becoming overwhelmed with buyers and very little inventory, while gentle density became a new priority for the city of Halifax with the passing of new by-laws that allow for accessory dwelling units. Sprout was born to address the varying needs of our community. We set out to create a small, attainable housing solution that could be built in the backyards of most of the lots in Halifax. Our goal was to offer a simplified buying and building experience for attractive contemporary structures, built with high-quality materials and finishes to stand the test of time.  Q: What can customers expect I was serious when I used the word ‘simplified’ as we have made every attempt to create a streamlined purchasing experience. As one of our current customers said to us the other day, “It's been really, really, really easy.” From our professionally-designed interior packages to our by-law-friendly footprint options, there are only a few key choices that need to be made. We also utilize passive design solutions as well as universal design principles for accessibility, so our buildings are efficient and built to suit different ages and uses throughout its life. Prior to the commencement of any project, we offer a Feasibility Study that results in a document to clarify what their property will allow for under current by-law restrictions and how the building would be serviced (water, sanitary, electrical). Once a contract is in place, we handle all the permitting and inspections, project management, and (of course) construction… right up to the point where we hand over the keys to an impeccably finished small home, ready to move in to. (Nice!)  Q: Tell us about your favourite Dwelling Ha, that’s like asking someone to choose their favourite child… we love them all! But what we love even more are the stories from our customers on their intended use. We’ve been very fortunate to work with customers that have long-range visions for how a Sprout can serve their respective families for many years to come. Q: What are some other local businesses people should check out if they’re in the area?Our Sprout offices are located near Quinpool, so you’ll often find us meeting over pizza and beer on the back deck of the The Oxford Taproom, one of the nicest decks you’ll find in Halifax.
Spring Cleaning GuideWith longer days and warmer temperatures, it's time to throw open the windows, air out your home and start your annual deep clean around the house to make sure you're maintaining your investment. Ask any home inspector and they will tell you that most things that surprise homeowners are easily avoided by doing routine cleaning and maintenance on your home. Something as simple as poking your head in the attic to check for leaks can save you from costly repairs if it becomes a larger problem. This year, to help with your annual spring cleaning and maintenance, I’ve compiled the ultimate checklist for you to print out so you can keep track of what’s been completed and what has yet to be done.  While annual maintenance can feel daunting, I recommend breaking up this list over several weekends, checking items off as they’ve been completed. SMALL BUSINESS SHOUTOUT: THE COASTALFor this week's Small Business Shoutout, we caught up with Mark Giffin—the owner of @thecoastalonlinekitchen—which one of my favourite brunch spots in the city 🙌  Q: What's the story behind why you started your business?I've worked finer dining for most of my career. As much as I enjoyed the challenge and spectacle of it, I personally prefer more approachable, home style cooking. I'd long wanted to have my own spot to do what I wish with food. In 2007 I was able to purchase a small coffee shop in the North End. I had no real plan or concept, but did recognize a need for a more contemporary breakfast nook. I went with that and we went from doing 18 customers, to 115 in three services, as word spread very quickly. The Coastal soon became a cornerstone of the North End. Q: What challenges have you faced during the pandemic? The hardest part of the pandemic (besides all of it) was the cycle of starting and stopping of dine-in restrictions, as well as the incredible price increases on all ingredients. Q: What can customers expect to find when they visit? When the last set of restrictions was announced I decided to try a new business model of strictly selling food online. This has proven to be more of a challenge than I had anticipated. The Coastal will be re-opening to dine-in this month. Whereas the old days the Coastal was an incredibly hectic, fast paced service, there will be a greater emphasis on a more relaxed dining experience. We'd like to be known for brunch cocktails, a place to hang on out and kick back. Q: What is your favourite part of having a shop in your area? I grew up in Vancouver, specifically Vancouver's East Side. North End halifax has a very familiar feel. More of a blue collar, down to earth vibe, but with a rather thriving arts scene. Q: How can Nova Scotians support small businesses like yours?Haligonians should get to know the small businesses in their areas. Support those businesses as much as they can, it helps foster a greater sense of community as well keeps the local economy thriving.
VARIABLE INTEREST RATES AND THE STRESS TEST BY JAMES MCKEOWnRecently there have been a lot of questions about how variable-rate mortgages are set to rise since they are linked to the prime rate. But what we should also look at is how fixed-rate mortgages have been rising rapidly for the past several months. Recently James McKewon, a local Mortgage Professional, posted a blog about just this subject. If you're curious how the changes around mortgages will affect you, read more below.  Clients often have questions after hearing in the media how variable rate mortgages are set to rise (linked to the prime rate), but what they don’t realize is how fixed rates mortgage have been on a rocket to the moon for the past several months.
Fixed rate mortgages are impacted by the bond market and not the prime rate, meaning they are free to rise and fall at anytime, not just set intervals. But how do fixed rates impact affordability, and what is the stress test? Last updated in June 2021, the stress test requires that mortgage applications be approved at a rate of 2% above the contract rate, or 5.25%, whichever is higher. With some fixed rates exceeding 4%, the qualifying rate is pushed above the 5.25% benchmark, while the variable rate product from the same lender is often not. While almost half the cost today, variable rates are set to increase, and with record inflation, and other unknowns there are no guarantees when those increases will end. A variable rate could be a very smart move, if you are in a position to afford increasing payments, as locking in down the road could still mean a higher rate than today. Variable rates are less advantageous to first time home buyers, retirees looking to downsize, or those looking to refinance. In today’s policy environment however, they may have no other option but to take the variable and its lower qualifying rate, in order to secure the extra money to purchase or get approved. But why don’t we have 30 year amortizations for first time home buyers, or the ability to qualify at the rate you would be paying in the case of a fixed rate term? These changes could bring immediate benefit to buyers looking for a home and level the playing field with those who are purchasing to invest, but it would also push prices even higher as Canada is estimated to need up to 1.2 million additional housing units with plans to build only a fraction of that number. It’s simply not possible to increase ownership and limit dramatic price increases when we have a shortage of homes to begin with. Rising interest rates and the stress test may well be what ultimately limits the rise in housing prices to a more manageable number, but that’s cold comfort to those being pushed out of the market and left in a rental market with its own challenges. A policy designed to promote stability however should not be encouraging variable rate mortgages, and as long as that’s the case, the stress test simply makes no sense. Read the original article here. 4 things you can do to keep your real estate plans on trackWith rent on the rise in Halifax and low resale inventory driving up home prices, it’s getting harder for Atlantic Canadians to save up for their first home. But that doesn't mean you need to press pause on your real estate dreams just because homebuying looks different than it did earlier this year. Just like people are finding creative ways to offer the services you know and love, the real estate market is pivoting so your plans of owning a new home this year don’t go off the rails. Here are 4 things you can do to keep your plans on track.  1. Get Pre-Approved The best pre-approvals accurately measure your qualifications and how much house you can afford. There’s nothing worse than finding your dream home, then realizing that it’s just outside your financial reach. Take the time to gather the necessary documents like:
Then book a virtual appointment with a lender. It’s important to note: getting an online quote is different than being pre-approved! Booking an appointment will mean less possibility of running into a problem down the line.  2. connect with an agentSerious home buyers need to start the process by connecting with a trusted real estate advisor. With most properties in the HRM seeing 20+ offers, I’ve seen homebuyers stranded in situations where there are multiple offers on a property and no one to move quickly and advocate for them. Booking a virtual buyer’s consultation is a great way to connect with an agent. They’ll take time to get to know you and your needs, and then start looking for homes that might not yet be on the market. Working with an agent will also mean having someone to walk you through the whole process from viewing homes, making an offer and navigating the closing process.  3. Do your researchWith interest rates on the rise, it's a great time to investigate down payment assistance programs. There are a variety of federal and provincial programs that can help keep your dream of owning a home on track. Canada’s First-Time Home Buyer Incentive provides:
Nova Scotia also has a down payment assistance program. Under this program, participants can apply to receive their down payment an interest-free repayable loan as long as the purchase price of the home does not exceed $280,000 and the household income is less than $75,000.  4. View listings onlineThis is a great way to get a sense of your purchasing power in different neighbourhoods. If you have a budget of $400k, then you might get a lot more for your budget in an up and coming area like Fairview than Downtown Dartmouth. Use this time to compare your budget and your home needs with locations you’d be comfortable in.
You can also use virtual tours and listings to take note of your must-haves and nice-to-haves in your potential home. This is the perfect time to clarify your budget, personal property preferences and lifestyle requirements. Still have more questions? Book a buyer's consultation here to get the answers. 📣 Small Business Shoutout 📣For this week's Small Business Shoutout, we're featuring a local favourite—Almonak! If you're looking for small businesses you can support across the HRM, follow along on Instagram for more.  Q: What's the story behind why you started your businessMy husband/business partner, Barrett, always dreamed of living an entrepreneurial life. I, on the other hand, am less of a risk taker, but decided to take the plunge. We had spent a number of years working in Western Canada, before making the decision to relocate our young family to Halifax, to be closer to family in Cape Breton. We both love great food, and the excitement of the restaurant industry, and feel honoured that we were able to be part of opening a restaurant to serve the North End Halifax community. Q: What challenges have you faced during the pandemic? There's no getting around that one; the pandemic has been incredibly hard on the hospitality industry. The constant changes to restrictions, the ongoing shut downs, staffing challenges - every part of it was hard. For us specifically, we had decided to focus our energy on brunch, instead of multiple services, but every time we were shut down, we switched to a dinner menu, and had to re-engage our customers. What was a fun novelty for the community in the beginning, waivered through the multiple shut downs. It became increasingly difficult to operate a restaurant through the unknown of Covid. It was very trying and stressful as business owners, and also very difficult for our team, who we weren't able to give all the answers to. Q: What can customers expect to find when they visit? Customers will find a modern, clean, nordic inspired esthetic, speckled with lots of greenery. We have a dedicated cafe area offering up third wave coffee, wellness lattes, and fresh baked goodies. Our brunch menu highlights fresh, creative, flavourful, unique dishes curated by a fantastic chef and kitchen team. We are known for serving up some exceptionally tasty Eggs Benny, but have recently expanded our brunch menu to include items like savoury french toast, and pakora brunch. When the warm weather hits, we will open up our patio, which is one of the few in North End Halifax. Another exciting addition will be the return of our dinner menu in Spring 2022. We focus on beautiful ingredients, prepared for you to enjoy with your favorite people! We will have amazing cocktails, and local beer and wine to complete your experience. Lastly, we are very proud of the consistently positive reviews we receive on the hospitality, knowledge, and welcoming nature of our serving team. We love being able to work with such great people! Q: What is your favourite part of having a shop in your area? The North End of Halifax is a really exciting, vibrant, and growing area to be. Over the last 3 years, the amount of residential and commercial growth has been exponential. We love seeing our little area flourish, and for locals and tourists to enjoy and support other small restaurants and shops in our area. We have also been lucky enough to connect with other business owners with similar goals, and have been able to support each other through the pandemic. We are also grateful to be part of the North End Business Association, whom are incredibly supportive, Q: How can Nova Scotians support small businesses like yours? We would love for you to come in and enjoy a meal or your favorite coffee. If you aren't able to do that, all small businesses truly appreciate the purchase of gift cards to use later, as well as following along on our social media. Liking, commenting, saving, and sharing Instagram or Facebook posts does not take much time, but is so helpful. Lastly, tell your friends and family about your favorite small businesses to support. It is true that small business owners do a happy dance with every sale. A lot of heart and soul goes into operating a small business, and without the support of our community, many of us would not still be here. Thank you for all you do to keep us small fish going!
Ready to make your move in Halifax? Book a free consultation to find out how you can find your dream home in our vibrant city. Top tips for listing this springSpring Showers may bring May flowers, but they also bring an influx of new listings to the market. Thinking of listing this spring? I've gathered some of my top tips from local experts to maximize your sale price when the time comes. 1. Getting a pre-inspection  Whether you’re selling or simply looking to maintain your purchase, Ed Pottie of Greener Inspections recommends doing a pre-inspection before you list so you can be aware of any issues that may pop up before a potential buyer does their own inspection. When I asked Ed what some common things that are found during pre-inspections, he told us:
2. Invest in photograph  The influx of out-of-province buyers has changed the way Realtors list and show homes and tech tools have evolved to handle these changes. Tim Robichaud of Harbourtown Photography recommends incorporating Matterport video and drone photography into your listing marketing to assist in marketing to buyers who won’t be able to view your home in person. Matterport 3D Video home tours help potential buyers understand the layout of the home, better grasp the room sizes and even allow for buyers to take measurements. For buyers who are doing FaceTime/Zoom showings with their agents, this gives them a firm grasp on the size of the rooms and the layout of the home during the showing and offers the ability to revisit the layout after the showing has been completed. Drone photography offers potential buyers an understanding of your property and neighbourhood. When dealing with sprawling oceanfront properties or country lots, it's impossible to get a true sense of a property from the ground. Nothing gives you a truer picture of a property than a birds-eye view. 3. Stage your home for sale  In this hot seller’s market, home staging is one service that sometimes gets overlooked. Staging is about making your home visually appealing and welcoming to prospective buyers and in many homes, only minor tweaks or temporary adjustments are needed to make your home more presentable. Maureen Kennedy of Stage Right Design, for her top tips about preparing your home for sale:
4. Improve your curb appeal  The first thing buyers see when they pull up to your home is your yard. This gives the buyer their first impression of whether the home has been taken care of, or not. Rob Corey, owner of The Gardener Halifax, works with homeowners to do a full clean-up service to prepare your home for listing, and this is what he recommends to DIY your yard before listing:
If you’re ready to get started and want to book a home seller’s consultation, hit reply to book a quick chat about your home.
Hidden EAster 'eggs' in nova scotiaOne of my favourite parts of being a real estate agent is sharing my passion for this city and all things local with Haligonians or soon-to-be Haligonians. For this special Easter edition of the newsletter, I hunted up a few hidden 'eggs' for you to find and enjoy this Easter season. Rosa Rugosa Seaside Market  If a short drive along the lighthouse route is in your weekend plans, make sure to stop by Rosa Rugosa Seaside Market in Hubbards. This year-round farmers' market has a little something for everyone, featuring a restaurant, general store and vintage shop. They offer a wide variety of local products sourced from all over Nova Scotia, including edible market goods, antiques, vintage clothing, flower bouquets, plants, and a full-service restaurant offering lunch, dinner and Sunday brunch. Narrow Espresso  If you're following me on Instagram, you know I love hunting for new coffee shops to try all over the city and Narrow Espresso Cafe may be Halifax’s narrowest coffee shop. Tucked in between two buildings on the corner of Fenwick and Queen Street, Narrow Espresso is a great place to pick up a coffee before exploring the South End. Narrow Espresso serves drinks made with premium quality, organic, fair trade & locally roasted coffee beans, which are delivered fresh weekly. In addition to their traditional coffee menu, they also offer a rotating menu of seasonal drinks, tea and smoothies, plus a variety of local baked goods and treats. Make it your destination to meet up with friends before going for a weekend walk through Point Pleasant Park or checking out what's new at the Seaport Market. Ori Foods Co.  Something brand new is coming to North End Dartmouth. Today we're welcoming Ori Foods Co. to the corner of Wyse Road and Russell Street in North End Dartmouth and I can't wait to check it out. This new resto-bakery is offering a selection of pastries, lunch fare, wine, beer, and coffee featuring quality local ingredients. You can expect to see favourites like key lime pie, cream puffs and creme brulee cookies on the menu. Ori will be located near the Dartmouth commons, making it the perfect place to grab a treat before walking down Park Avenue to see if the Cherry Blossoms have bloomed (the surest sign that winter is actually over in Nova Scotia!) Easter Egg Hunt Wine Tour  Looking to make plans with friends for the Easter weekend? The annual Easter Egg Hunt Wine Tour is back, after being temporarily paused in 2020 and 2021. Go North Tours is currently offering this unique Easter Egg Hunt-Wine tour experience for private groups of 8. You’ll stop at three wineries: Grand Pre, Planters Ridge and 1365 Church Street, for guided tours and tastings, and compete in easter egg hunts to win prizes. Transportation to and from HRM is included in the price. Click here for more info and to book your spot.
With news of interest rates increasing and the spring buying season just around the corner, I caught up with Mortgage Broker Alex Lavender of the Clinton Wilkins Mortgage Team to get the answers to your most pressing mortgage questions. 1. What questions are you getting from borrowers? The top question right now is what will happen with interest rates? If I had a crystal ball, I would be a rich man. There are a lot of predictions out there right now, but from the data we are seeing it looks like there’s an expected 1% increase in rates in 2022 followed by another 0.50% increase in 2023. As of March 2nd, we have just had the first rate hike in almost two years. It is expected that this is the beginning of the rate increases for the next two years. 2. How are rising interest rates affecting mortgages? Rising interest rates have two effects; They can increase the cost of mortgage payments and they can also reduce the qualifying power for a mortgage. As interest rates increase, you will typically see an increase to the stress test rate as well, which is currently set at the greater of 5.25% or the contract rate + 2%. In terms of payment increases, every .10% increase typically increases monthly payments by $5 per $100,000 of mortgage debt. For existing owners, this really depends on the type of mortgage product. If someone is in a fixed-rate mortgage and currently owns a home, the increased interest rates will not affect them until their term ends and they come up for renewal. At this time they would need to renew at the rates available in the market and that is when they will see an increase. For variable rate mortgage holders their rate can go either up or down during the term. Most mortgage lenders will either increase or decrease the payments when this occurs, but there are some lenders that will keep the payment the same. 3. Do you have any tips for first-time homebuyers? The most important tip is to get pre-approved. Ensuring you can qualify is only one aspect of a pre-approval, you also need to ensure that you can comfortably afford the payments for that mortgage as well. I highly recommend you contact a mortgage broker of your choosing to assist with this, as they have access to a wide range of lenders that can search out not only the best rates but the best terms for your unique situation.
The second most important tip in this market is to not get discouraged. It is very competitive and I know firsthand how disheartening it can be when you don’t have the accepted offer on your dream home. It may take some time but if you are persistent there’s a very good chance you will finally land that accepted offer. |
Margaret CraigReal Estate Advisor based in Halifax, Nova Scotia. I help people buy and sell homes with Engel & Völkers. Archives
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