Rental Gurantees to Come to Canada!
Rental guarantees arrive in Canada
Rental guarantees are a successful billion-dollar industry in Australia and Europe. Majority of landlords in the UK have had legal expense protection for quite some time but it is only now being offered to landlords in Canada.
According to Steven Solomon, president of Rentshield Protection (Canada), investment in residential rental properties has increased in the GTA by 20 per cent since the 2008 when global markets faced economic meltdown. “Majority of property owners in the U.S and Canada are moms and dads over the age of 45 who are seeking financial stability. By purchasing income-producing residential properties, they are looking for a financial retirement strategy they can manage themselves.” There are inherent unknown risks in every investment strategy. Novice landlords now acting as property managers may not be prepared for the risks. Even experienced landlords need to constantly manage; tenants that are frequently late with payment or worse won’t pay rent at all, renters that refuse to vacate, serial trouble tenants that tie up time and resources with appeals, collection laws that delay enforcement and a Landlords and Tenant Tribunal favouring tenants over property owners.”
According to Solomon, more than 70,000 Landlord Tenant Tribunals were attended in Toronto last year. A recent bad tenant story involves a man in Calgary who declared his rental home was an embassy. He refused to make payments to a grandmother landlord. More than two years of rental income were lost and she suffered great stress, fearing the loss of her pension income and life savings.
Rentshield program will soon be offered in Canada. Membership starts at $299 per year and guarantees payment of unpaid rent. Members will also have all legal and court costs covered. The program will help landlords collect and evict trouble tenants that refuse to pay or vacate. Landlords are urged to sign up using a secure on-line system.