Creating A Fair System For Landlords with Kayla Andrade and Sarah Larbi

Creating A Fair System For Landlords with Kayla Andrade and Sarah Larbi
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Table of Contents - Creating A Fair System For Landlords with Kayla Andrade and Sarah Larbi

Podcast Transcription

George El-Masri [00:00:00] Hello, guys and gals, thank you for joining us today on the Well Off Podcast. I interviewed Kayla from Ontario Landlords Watch and Sarah Labi once again. She was sort of a co-host on this episode. And we had an opportunity to talk about a lot of issues that are impacting landlords and tenants today, including the facing not evictions at this time, what to do as a landlord to protect yourself when dealing with your own properties or properties that you're looking to purchase. We talked about having a good paralegal screening tenants and the landlord groups that are out there and what to do if you are interested in creating some changes, what you can do to help. Obviously, Kayla's doing and making her effort to help create some changes. So we talked about what would the perfect, I guess, eviction process look like if it came down to it, how long it should take and what she's proposing to do to to make that happen. So I hope you'll enjoy the episode once again. I hope you're staying safe. And I just want you to keep in mind that there are still quite a few opportunities out there. I know there is a lot of fear around investing right now, but if you are thinking about it, there are probably more opportunities now than there have been in the last few years. So I'd be happy to discuss that with you. There are ways to mitigate your risk, and if you just want to have a conversation about that, reach out to me. George attwell off. So once again, I hope you'll find value in this, and I wish you all the best. Welcome to the podcast, where the goal is to motivate, inspire and share success principles. Coming to you from Zoome for the first time, I'm here with Sarah, Laribee once again. And Kayla from Ontario, Landlords Watch. Kayla, welcome. Thank you for joining us.

Speaker 2 [00:01:45] Oh, thank you for having me.

George El-Masri [00:01:47] Of course. So I just very quickly, Kayla, she's kind of she's been working with the Ontario Landlords Watch for a while, kind of helping us as landlords figure out a fair way to treat both parties, because obviously a lot of landlords feel like we're it's a little bit unfair what's happening right now, especially with with covid-19, no evictions happening, things of that nature. So we're I guess she's kind of like lobbying for us to to help create some more fair grounds for everyone. And there is this notion that landlords are getting rich and taking advantage of tenants. But that's as far as Cayley's spoken about in the past. That's not necessarily the case. A lot of landlords are struggling just to even cover their their mortgages. And obviously, there's a lot of new issues that are coming up with a delay in getting evictions done. Even once this is all over, there's going to be some issues. So we're going to be discussing some of these things today. Before we start off, I know where we're going to be getting into somewhat of a serious topic, but I always ask, I guess that's on on the show to tell me a little bit about their childhood, where you grew up, and just a little background before we get started.

Kayla Andrade [00:02:56] Oh, I never had that before. OK, so I moved to Ontario when I was 11 years old. I'm originally from St. John's, Newfoundland, and we my whole family, we rented all of our lives and my family are still renters. So we end up coming up into Ontario. And that's when I met my husband in high school. We now have four kids. We have 17 units. And I became a lobbyist in 2010. And we just keep keep dropping away until we can get the yes, I got that nagging wife syndrome and I'm using that to my benefit with the government.

George El-Masri [00:03:37] And I didn't I didn't really do an intro there for Sarah Labi because she's been on the podcast a couple of times. But a lot of you guys already know her. I think Sarah is going to be kind of in a certain way kind of helping me host this episode. So you're free to ask questions as well. But why don't we get right into it? There's there's obviously a lot changing very quickly right now with with covid-19. There are no evictions, as we all know. What do you think will be happening once evictions resume and once things somewhat return to normal? Do you have any idea of what kind of timelines we're looking at?

Kayla Andrade [00:04:17] Timelines could be stretched. It all depends on if there's going to be a different system being implemented to deal with the backlog of all of this. But if you can look at the fact that after this, in putting your in force already, in putting your wait time to get a hearing, then we would assume that adjudicators would open up and to a payment plan with the tenant versus being granted the evictions based on what is happening and how it is a hard time for everybody. So we can see evictions possibly not happening maybe for 18 months is what we're predicting.

George El-Masri [00:04:55] And that's a sign that there won't be any appeals from from tenants.

Kayla Andrade [00:05:01] You know, there will

George El-Masri [00:05:02] be, exactly. So if there are appeals, I could stretch out even further, in your opinion?

Kayla Andrade [00:05:07] Yes, definitely.

George El-Masri [00:05:09] OK, so right now, assuming so, let's assume we turn back the clock to about six months ago. If if a landlord was applying for an eviction, what would be a typical timeline? When can you normally expect the tenant to be out of there?

Kayla Andrade [00:05:23] On a good days, probably seven months, seven, seven months from me knowing the system. I've been a landlord for 17 years. I had to go to the landlord tenant board once. That was this year in August, and it took seven months to evict.

George El-Masri [00:05:36] OK, so you're saying on average, assuming there were no issues with covid-19 what not, it would take about seven months for

Kayla Andrade [00:05:43] it's seven months definitely in the Waterloo region and it could be even longer in other areas because it's going to be based on the backlog that's in certain wards.

George El-Masri [00:05:52] Right. So I understand

Sarah Larbi [00:05:53] why. Keep in mind to that is if the landlord has done the proper paperwork at the correct time, not, you know, oh, you can't pay. OK, well, when can you pay next? And sometimes there is a delay already before there is even an end for sent over or know. There is oftentimes you hear those stories where an informer has been filled out but incorrectly and then the whole process has to start again. So. So seven months, unfortunately, is when everything goes to plan and there is no going back again and starting over because of paperwork.

Kayla Andrade [00:06:30] Or the ten and appealing or appealing.

George El-Masri [00:06:33] Right. OK, so that's that's a big problem, obviously. Have you thought of any or have you discussed with other people to sort of figure out a solution that can be helpful to everyone?

Kayla Andrade [00:06:47] We are brainstorming. We've created a council for entrepreneurs who we are going to be registering as a lobbyist group that's going to have a different name, but it's still going to be branched off of the members. Was an Australian was launched. Sarah Labi is one of them. So that we're going to be able to kind of give our solutions that we're thinking and we're going to know what exactly are the issues that landlords have and tenants have. And that's what we're really trying to work our system, a new system in place and try to pitch that to our elected officials to get them to introduce it. But the number one is the nonpayment rent. There is over fifty thousand four hundred twenty three applications being brought to the landlord 10 board on a good year of not paying rent. That number is obviously going to escalate through the pandemic and the landlord tenant board can even handle that paperwork, that that workload that they currently have. So a lot of our solutions that we just recommend it to officials. This was more on the concept of mediation and mediation being brought to both landlords and tenants prior to a hearing. And it's not even being prior to a hearing. It's more of nonpayment of rent should be dealt with just through mandatory mediation. A lot of those problems could be solved and agreements could be put in place without having to wait for a long period of time to have it heard by an adjudicator. When there's really no laws, states Whiteheads should have the right to withhold or rent unless you just didn't give them the lease agreement with them in the timeframe that that is suggested.

George El-Masri [00:08:18] Right. Have you had an opportunity to look into other cities or other places around the world, perhaps, where they were facing a similar issue and they were able to find a solution?

Kayla Andrade [00:08:30] Definitely in Alberta and Manitoba there as a very much a streamlined approach that they have, especially when they will allow you to even charge a late fee to to the rents that you have. So we want to kind of oversee and model what Alberta and Manitoba does for their actual nonpayment of rent. But they also have to know that through our solutions that we're trying to implement within the government is that we need to utilize what kind of programs are out there right now, such as in the Waterloo region. It's called Luther would it could be a different name in another municipality or it could be handled by the elderly or the ODP work social workers. And that money there is actually helps people out through difficult times or in their hardship. And that actually helps relieve the and the arrears that the tenant had occurred. And it gives it right to the landlord. So we really want to kind of use that in the private sector to keep people in their homes because it is cheaper to keep people in their homes than to have them on the system.

George El-Masri [00:09:30] Right. So right now, as it stands, we all know that there are no evictions. So if what would you suggest to a landlord if they're having issues with their tenants? Is there anything that they can do to protect themselves right now?

Kayla Andrade [00:09:47] The only thing that we're telling our landlords to do right now is try to work with your tenant, try to work out a payment plan made very nice as pie about it. You really need to still issue your own four notices to show that that missed payment portion of it, because we don't know how that's going to go. Now, one of those when the landlord tenant, it opens up, but it's about making that payment arrangement and having a document shared that tenant say we understand there's hard times. Here's a document so that you can write down your payment plan with us so that we can try to work with you. That's the only thing that we can really do right now, unless it's that we hate to say it, but it's the cash for keys. And that's the part where we don't really want to really advertise out there so much because tenants do want to potentially take advantage of that and give crazy amounts of what it's what it's going to take for the landlord to get them out of their place.

George El-Masri [00:10:44] And what about you? Any any suggestions on that question there?

Sarah Larbi [00:10:49] Yeah, I mean, documenting is going to be crucial. I think just taking a step back. I'm a big advocate about screening your tenants before you put the tenants in the place because you want to make sure that you have the right that you're going to be able to work with. Right. Because there's a lot of tenants out there that cannot pay. But we'll try to do what they can to pay what they can. And as May comes, if this goes on until June, it's going to be I think it's going to get them the work force. And then there's tenants that just choose to say, screw it, I'm going to keep the rent and to buy food instead and I'm going to save it. So just this also goes back to if you've got empty units, there's a risk to put a tent in place at the. Point in time, so screening the attendant right now is going to be huge, obviously, if they're already in your place, you can't do anything but any new units that you're looking to fill. And then you got to weigh the pros and cons. Is it worth putting tenant in right now so that if something happens, you may have

Kayla Andrade [00:11:46] to wait 18 months before you go to the board

Sarah Larbi [00:11:49] and get the tenant out? Or is it worth carrying for three, four months if you can, and not place a tenant until this boils over and and you know what's going on and where we stand at that point in time. So so there's there's good and bad, but increasing the tenant screening measures is going to be huge. Understanding how the tenants fared in March, April and May, did they pay? Did they not pay? Could they have paid? Could they have not paid? I'm going to be adding some specifics to my screening process to uncover some of that. But I think ultimately real estate investing is great, but it's just important to plan for the good times and plan for the bad times, because it's going to be a cycle right where we're in a downward trend a little bit. But at some point it will come back up and at some point it will come back down. So it's just always important to have a good buffer. And as an investor, that's what you want to plan for, right? To plan for the good. You want to play for the bad. Unfortunately, no plan for the bad all happening to the whole world at once and so many people losing their jobs at once. But it's important to to adapt. And I think when it comes to landlords and tenants right now, if you can work with them as much as possible, like a set document, the payment plan, I would still issue the end for. It's still a process. Ideally, at the time of signing the lease agreement would have told them, if they're late, this is what happens. Get a good paralegal on your side as well. Sometimes getting the stuff through the paralegal, having them submit the end for put everything together so that it's done correctly is going to be helpful. But this is this is a scary time for a lot of investors. And I think it's just it's an opportunity for us to come together. It's an opportunity for us to try to work with the tenants as much as is reasonable for all parties to come out of this as good as possible.

George El-Masri [00:13:45] I agree. One hundred percent. There's there's very little that we can do right now. But at the same time, you have to be very careful and make sure that you document, like you're saying, screen tenants for sure. But like you said, we don't know right now. If you end up if you end up renting to someone and they understand the rules and they try to take advantage of it, you're kind of at the mercy of the tenant there. So I was going to ask. So we talked about payment plans. I know this is probably a legal question. So in terms of the rules around that, I've heard, like, you have to be careful about what you offer to tenants, because if you end up reducing rent and it goes on for several months, that might become the new rent, the new lawful rent. I don't really understand the rules too much, but have you guys heard anything about that?

Kayla Andrade [00:14:31] Yeah. Yeah, a lot of people. I've got a few phone calls from landlords like that. They want to offer a discount. If you look in the section of the RPA, again, I'm not a paralegal, but there is a two percent of a discount that you can offer anything more after that. Once it goes on like this is more of a if you want to be able to reduce the rent, tell them to pay the rent and you can give it back to them in some type of a gift certificate for I think that would be the safest bet in order to kind of still pay it back to your tenant, but not take it from the rent in itself

Sarah Larbi [00:15:06] because there is a risk that that becomes the lawful rent. And then when you want to increase it back up, then you've got to go through the system again. So I would be very careful about doing discounts, especially because most of us

Kayla Andrade [00:15:17] are

Sarah Larbi [00:15:19] capped at two point two percent increase. And we know that rents go up five or 10 percent a year as market rents. Right. So be very careful with that. I just I will second what Kayla says, if you want to offer something, offer them gift card, maybe like a Visa gift card that they can use to buy food as an example and have them pay rent in exchange of paying rent for rent. And you give them one hundred and fifty dollars as an example or whatever you want. That makes sense that they can use towards buying food and other items. But I don't think I would do anything with the rent. And then the other thing is you've got to be careful at some point when you're refinancing or when you're going to want to acquire more properties, the banks are going to start asking for statements, what came in, what came out. And so I think it's just really important to try to keep that as tight as possible. Gift cards can kind of be off the books from a different account, but I think it's important that you're still showing full rights as much as possible. As long as your tenants are paying and are able to pay the full rents, it'll help you as you're acquiring more because there's going to be some great opportunities, I think, in the real real estate market. But the banks are tightening up a lot on how they're looking at loaning out before.

George El-Masri [00:16:27] Right. So I guess some of the banks are also no longer. Or slowing down payments to come from Hilux? From what I've heard.

Sarah Larbi [00:16:34] Yeah, I mean, there's workarounds for sure, but Scotian knows that I'm guessing most of the other banks are going to follow suit at the time this year. That might be still the case. And again, I don't know if it's something that they're doing just as we are in the situation right now. Is that going to be lifted or is that going to continue it? But I'm sure there will be more more changes coming. And so it's important that we we plan and we can maneuver work with a good mortgage broker and they'll walk you through how to how to kind of walk around that and ensure that you're ready for that opportunity when that opportunity comes in a few months.

George El-Masri [00:17:11] Sure. Definitely. All right. Another thing I want to touch on, I know that there are tons of landlord groups, there's different Facebook groups and whatever some of them would meet from time to time. What can landlords do now? Because obviously, if we join forces, there is all these regional groups and whatnot. If we were able to join forces, do have you do you have any idea of how we might be able to do that to get everyone together on the team?

Kayla Andrade [00:17:38] Basically, that's where Sarah, Sarah and the in the rest of us are working ourselves and collaborating as a lobbyist group. There is a lot of Facebook groups out there. A lot of them is just going to help with the day to day operations. Questions about the art and the LTV a.m. Landlords Watch Members Group. We decide we really help each other through the operation, but we also understand get the question out there for the members to help us create the solutions. So we talk about the issues in the area. We talk about the LTV and then we take that and we put it into a report. So it helps us when we advocate and lobby the government in order to do so. Once we have the final registrations out there. And hopefully by the time this is broadcast, we can actually tell you that we're fully registered. And this is the name that we're going to need our assistance from the members to help us. And we're also going to have subcommittees to really unite the landlord for voice as opposed to possibly take the big guys, too. But it's when we're going to be the lobbying group to represent the interests.

George El-Masri [00:18:42] That would be great. So in a perfect world, what would the process look like? Let's see if a tenant late on their payment or they're damaging a unit or whatnot, what would it look like in a perfect world? The process from start to finish to the finish being the eviction, basically.

Kayla Andrade [00:19:00] OK, well, what we want well, what we can get ideally what we'd like to see is a brick and mortar type of facility where landlords and tenants can go and get help with information regarding the forms we want that that that building as well, to handle mediation, to handle hearings and also have someone from government agencies to help people out to really analyze their finances, to find out if you live in a two bedroom unit, it's eight hundred dollars. These type of people are applying for government housing and they get approved for government housing. They may not need government housing. They might just need rent subsidy. So it's about kind of condensing all the housing services that are out there to help people, such as the way that they handle people in shelters. We need to condense this and use it where the government is partnering with private investors and we're being able to tap into having easy transition of people receiving funds to keep them on track and to not have the Mecklenburg or so we're going to have to have use of government assistance in order to keep these people paying their rent so that it doesn't not get paid. And then we still have government funds that are still going to bail them out. It's almost, again, duplicative services, more money being wasted. Yeah, I

George El-Masri [00:20:24] don't I'm not coming off as somebody who just wants to evict all tenants. That's not the case. But I understand that it would be great if we can all collaborate and we can find solutions for everyone. So what are your thoughts? What would that perfect process look like in your opinion?

Sarah Larbi [00:20:39] Yes. I mean, I think ultimately the sad thing is a lot a lot of investors are going to get out of this business because of the complexity of the landlord tenant board and how long it takes. And I think we're going to see a lot of people deciding to sell. But perfect world. I mean, there is there some there's some in between right now. We're completely swung one way. I mean, it shouldn't take seven months to begin with. A perfect world is it would take under three months and we could recoup any lost funds fairly easily and we can recoup any damages fairly easily that that would be the perfect world. And we wouldn't necessarily be capped at only two point two percent increase. But there might be some different avenues for no. If you're in this type of building, this is what your increase can be like. There's a I think there's a lot of control from the government's. And I compare that to Airbnb, where Airbnb treats us like paying customers and really, you know, treat us pretty well as as homeowners that are renting other places or investors renting other places. And we don't see the same thing from from the government, in my opinion. So a little bit of help for both sides would be great. And where we have an opinion that's valued as well and that we don't have to always be the losers. So we have to go to the courts because there is a lot of tenants that are abusing the system. Now, there's also some slumlords and they should be penalized for being slumlords and not treating or doing repairs that are that are supposed to be done. So it definitely goes both ways. I don't think it should swing all the way to for us landlords and not in favor of the tenants. But it has to be somewhere in the middle where here are the rules that make sense for everybody. No one's going to be out either way. But if you're a slumlord or you're a really crappy tenant that's abusing the system, there should be penalties much faster for both of those parties.

George El-Masri [00:22:40] And the unfortunate side of that is that tenants can get away with a lot more because often they don't they don't really have anything that a landlord can chase them for. They don't really have a big net worth or sometimes they don't have great credit. So they don't really care about anything. And whereas landlords, they have a lot more to lose in this case, their if their credit's damaged, they can't go on to buy anything else. They could lose the house if they're not able to pay the mortgage and whatnot. So that's another thing.

Sarah Larbi [00:23:09] Yeah, absolutely. I mean, if a tenant can cannot pay, you would hope that they were there would be a shorter time frame. We're like, OK, we're using your last months. If you can't pay at some point, this should not drag on for seven months or 18 months, which is going to happen. But there should also be a penalty for if it's your second or third time and you're abusing the system and you know how to play this game like that should be like, that's it. You're out like a SOB. So why that has to go through the whole process and start all over again for the next unfortunate landlord. That doesn't seem to me that's insane.

George El-Masri [00:23:42] Yeah, for sure. And you touched on the Airbnb option. So do you guys think that this this is good right now, a good alternative, at least for the time being? So that way you're not stuck with the Landlord Tenant Act rules, I would assume,

Kayla Andrade [00:23:55] take, etc..

Sarah Larbi [00:23:58] You know, unfortunately, Ford has implemented a strict no short term rental at this point in time. Hopefully that gets lifted, but the penalty is one hundred thousand for for us to do it if we do short term right now and 10 million for companies. So is it a good option? Absolutely. I would have probably switched a lot of my rentals should they become vacant to short term because it's less of a risk and I can get paid up front and Airbnb will cover damages and there's liability insurance that they have, but maybe they see this coming. Maybe I hope that it's going to be lifted. But all of a sudden they're telling they're telling all of the investors no short term rentals. So short term, is that twenty eight days, like it's still a little bit vague or what that means. But at the end of the day, is it better to get paid up front through short term rentals versus risking it with a long term rental? Probably, but I know the hundred thousand dollar fine either. So at this point it's at a standstill for my units. If I have some vacant ones and not the right tenant, I will. I have the luxury luckily to leave them vacant for six months if I need to. But I'm not going to put the wrong tenant in there because I would rather pay six months out of pocket than eighteen months plus damages when it's all said and done to have the wrong tenant in there.

Kayla Andrade [00:25:20] Well, they already had it going like from Ottawa, stopping short term rentals and then Toronto on the short term rentals. And that would be to the point where the landlord cannot be the one to implement the short term rental, but the tenant can actually rent the unit out of short term rentals. They think that by stopping short term rentals, it's going to flood the market with long term rental units. And instead of looking at why aren't there any long term rental units? And obviously it's the and the LTV, they rather put it another roadblock in front of investors. And instead of working with investors to understand those type of issues, same thing we talk about maintenance. And more likely, if you talk about a slum landlord, it's about not doing the maintenance. But when the tenant can actually apply to the board and have their maintenance issues dealt with there and get money back on the rent because it's not being done. But they also have municipal policy that allows the tenant to connect with their municipality and have by law investigate any type of maintenance issues. And they would work out a work order. They'll tell the landlord this is. It needs to be done. This is the time that it needs to be done by and if it's not, they will send out the contractors, they will get the work done, and then they just put it to your property taxes. So there's always a way to make sure that the tenants get what they want. But there's nothing that we're doing there that we're fighting to get right back to the homeowner who actually own the place. So it's a part of their process of trying to stop these short term because they know that it is a way of us trying to get out of the the long term handcuffs because of the arcane TV.

Sarah Larbi [00:27:03] And that's the theory then. That's the theory. Right. And I hope that I hope that they're trying to do it for health reasons right now. And this will all be lifted. But it's very interesting how the fines are so hefty, so hefty, like why does it have to be one hundred thousand? I mean, to me, that school there's a little bit of bitchiness.

Kayla Andrade [00:27:21] I guess if you look right now, there's a campaign going out for people who are doing short term to rent their units out to the health care professionals. Would you tell us not to do short term? But then there's a campaign to if you have short term rentals, to rent it to them so that they're not having to go back to their family. And now people are like, sorry, you can't join the campaign.

Sarah Larbi [00:27:43] Yeah, absolutely. It's interesting. But the other thing, too, is like people are going to need short term rentals when this is all done, like the divorces, people that have places that are in construction or delays in new construction, they were waiting for their property. So they're going to need something for a shorter term basis. And I don't know, I mean, unless this is gets lifted, there's going to be a whole lot to pick from. And I don't know who's going to want to risk one hundred thousand dollar fine having that above board so I can see a lot of under the table stuff going on. And I think a lot of unfortunately, a lot of people might just be out of business willingly or because they have to. So do I like short term rentals? Absolutely. I think Airbnb treats their customers much better than the government's treating landlords in general. Is that a long term solution? It's it's it's tough to say. If you've got a property right now and you're dependent on vacationers or people traveling to your place, you may not fare as well moving forward depending on when they open up the borders where people can travel. I have a cottage as an Airbnb. I'm thinking that will probably do well because people are going to want to travel, but they're still don't want to get out of the city, go up north a little bit to to get away from the chaos or all of the condos in Toronto and condos. They want space. So I think the cottage rentals will actually probably do well as long as the municipalities don't put a ban on that. We'll see what happens. No one's got a crystal ball.

George El-Masri [00:29:14] OK, so I know we covered quite a bit here and I know we covered a lot of this stuff that for the upcoming question, but for people that are looking to buy something, because obviously there will be a lot of opportunities in the next couple of weeks, a couple of months. What should they do, aside from what we've already talked about, maybe to cover themselves and make sure that their purchase ends up being a good investment?

Sarah Larbi [00:29:40] Yeah, I mean, I don't necessarily think it's going to the strategy is going to be that different, but the prices might be a little bit lower. Your RV might be a little bit lower. You may not need to do as many rentals potentially. If you're doing the strategy, you could probably find something that's less than you would have bought originally. The rentals don't require as much Renaults. I think the the RV ideally gets decreased a little bit when you're running your numbers, because I don't know if you'll get the final RV that we get used to. So I would just say do what you were doing. But keep in mind that the banks, the lenders are changing every day. The rules and regulations will stay on top of that with the mortgage broker as much as possible. And there will be good opportunities. I think that will be good opportunities, but I don't think we're there yet. I think it's still it's still coming. And then the other thing I would say is if you are going to be looking for an opportunity, don't defer your mortgages, because I cannot I mean, I don't have a crystal ball, but I can not foresee a lender wanting to loan on a new piece of property. If you've deferred your mortgage just so you might be stuck for six months, if that's what you've done and it might prevent you from from acquiring another property within that time frame. But I also think that there could be an opportunity to get some discounted opportunities, but also gives take back opportunities where back in the day that wouldn't have worked because everyone was doing cash offers pretty much on everything. But if we start seeing an imbalance between the supply and the demand, there may be some opportunity to get some better take back options or deals that way, get deeper discounts with motivated sellers and be a little bit more creative in what you can do that way.

George El-Masri [00:31:20] Yeah, for sure. I agree with you. What about you? Any any thoughts on that?

Kayla Andrade [00:31:24] All I've seen a few posts that's been coming into the group that people were ready to buy their. Investment property, and they bailed on it just because they didn't. It's it's the unknown chartered territories that people are afraid of and knowing that you're just taking on a new property, you're emptying your bank accounts or a good chunk of it to pick up that property. And that's maybe why now the prices of these home prices are going to drop a little bit because a lot of people are a little scared to see what's happening. But we have hope that our elected officials would see that a rent subsidy is what's needed in order to protect the current housing supply, to keep a good taste in investing into the investors mouths, of wanting to keep doing what we do. But there's got to be some support coming from our elected officials to keep these people in their homes. The government came out and said, don't worry, you're not going to get evicted. He's not saying you're not you're not getting evicted now, but he's not saying, like, when and you're still going to potentially be evicted. It's just going to make sure that you're taking on that property, that you can cover that property up until the pandemic is over. You need to start getting that non tenant out and getting a new one in about

Sarah Larbi [00:32:33] acquiring anything with current tenants in there. If I mean, obviously, legally, you have to sue them. But that could also be a reason why a lot of people are going to start selling because they're like, I don't want to go months through this and I won't be able to afford it. I've got to sell it to the tenants, have to come with it. So again, just weigh the pros and cons. Every deal has its price and headaches, and it may or may not be something that you want to deal with. But I see a lot of that coming with some investors that aren't going to get paid for months to just see if they can just sell and have somebody else acquire it with them inside.

George El-Masri [00:33:07] You mentioned a rent subsidy, which I've thought about as well. What would that look like, in your opinion? What would be something that would be fair?

Kayla Andrade [00:33:14] Well, right now, these they have a rent subsidy of five hundred dollars. Now, I don't have any knowledge on any other type of government programs like the government in Ontario is rolling out two thousand dollars a month. That is supposed to be for rent and groceries. Obviously, we have a growing movement of tenants who are doing a rent strike. So we kind of go, well, you got two thousand dollars. Was that is that money going to be going to be going to the landlords? So this would be more of a concept that if we give out an infinite notice to tenant saying that they have a paid ideally, what would be Eavis to say that they agree with it? The landlord would sign to say, yes, this is the amount that they're in the arrears for. And this document can be given to the elected officials in order to tap into this rent subsidy, like the money that I've suggested with Luther Wood and these types of agencies where they pay, they give money for the arrears, they've put their money on hold. Normally it would be a, hey, I fell apart three months. I need the money. They will give three months of rent, but they've now put their funds on hold. So we want to have those type of funds be put through the rent subsidy and also the landlord tenant board. It's still open, but they're only taking applications for illegal act or safety and in reality, the amount of money that it's cost to operate the landlord. We like to see that type of funds be put into this rent subsidy. So sometimes what the government is like, hey, you want rent subsidy, it's a great idea. But now they have to figure out where does the money come from. And that's what we try to do, too, is look at all these government agencies, look at what's working right now and how can we feed the rent subsidy so that when we ask for it, it's not like we're just asking with our hand open. We're actually trying to tell them where the money could potentially come from. And they can also work at where if a tenant is just down and out because of the working situation, there could be a little factor coming where the government can have a payment plan after the fact to help that tenant pay back the money that they need it for. Rent subsidy.

George El-Masri [00:35:17] Yeah, that sounds pretty fair. I'd be it'd be great if they came up with something like that to help people out. OK, so before we move on to the next section, which is the random five, is there anything either of you would like to add or to share?

Kayla Andrade [00:35:32] I would really encourage anyone who is listening to write down your issues with the IRC, the LTV and housing in general come up with the same amount of issues, get a solution to it and make that call to your MP, make it to the minister of housing and you have to start voicing our concerns where landlords are investors. It's a necessity. We thought it would be a lot safer than to stop, which still is is taking advantage of small landlords. And we have to get that united voice and be the louder squeaky wheel, because right now they're listening to their tenants and we need them just because they see them as boats. We need to show them that we do have a lot of power in our numbers. And you have to make sure that you're doing just as much education on advocacy and how to protect your investment, not just how to grow your your investment portfolio.

George El-Masri [00:36:27] What about you, sir? And.

Sarah Larbi [00:36:29] I mean, everything that Kayla says, I think is probably the number one priority that we need to be focused on as landlords is creating that one voice. But I will also say it's not all doom and gloom five years from now. I know we're all concerned with covid in the market and what's going to happen five years from now. I think we'll we'll be in great shape every. So it's about how long you've got your properties in the market, your your time in the market, not timing it. I wouldn't necessarily wait on the sidelines for years and years and years because there's something else, right? A couple of years from now. Something else I will say real estate investing has been the best thing I've ever done. This pros and cons, there's ups and downs prepare for both those ups and downs and there's going to be challenges, right? This whole thing is a challenge, but it's how you you deal with it and what you can do to make it better for everybody. And I think that's the big thing is and I want to say killer's been working ten plus years on advocating. And I think that it's just such an important cause because we want to make sure that we're aware that we're continuing to invest in real estate or continuing to provide housing for tenants, nice places that they enjoy and they feel like their home. And I think that's important. And we've got to just have more of us speaking that same language, really fighting for rights, in my opinion, that we have and not being afraid to take action on some things. So one voice, let's work with other investors and make sure that we have that one message. But along the way, I will say just keep investing in real estate over time. You will do better than if you had a job right now and you had to go to get served because all of a sudden you rely on that one source of income. So real estate is another source of income in addition to your job, in addition to your other stuff, but have more than one source of income because it gives you so much more control, even though right now you don't feel like we have a whole lot of control, the whole LTV stuff, we still have more control because we have other sources of income regardless than just our jobs.

George El-Masri [00:38:40] Awesome. OK, thank you very much for sharing all that. Let's go into the random five. So this is like you probably never heard anything like it.

Kayla Andrade [00:38:50] We can be nervous now. Do I have a buzzer?

George El-Masri [00:38:54] No, it's not a competition. I'll just give you guys a chance to answer one question after the other. So we'll start with you, Kayla. What has been your biggest financial mistake?

Kayla Andrade [00:39:05] The one tenant that I got into my rental unit, it was a very fast, fast decision. I didn't do all my. Can years and I I got burned pretty good for seven months of no ranched, but what lesson learned and never tried to rush in through accepting it tenant because one tenant can cost you a lot more money than just leaving the unit empty for a month. Right.

George El-Masri [00:39:31] OK, fair enough. Sarah, what's the strangest situation you've ever found yourself in?

Sarah Larbi [00:39:37] How do you change his question? Questions the strangest situation I've ever found myself in. God, I don't know. The strangest

Kayla Andrade [00:39:46] I when I die, I'm like, oh, I'm in a drawing of

Sarah Larbi [00:39:52] strangers.

George El-Masri [00:39:53] Well, Kayla, if you have something in mind, you can share it.

Kayla Andrade [00:39:58] I don't know. It's probably going back to that one tenant that I talk about, how he he started putting our names all over his Facebook saying that we killed this cat because his dog got inside of the shed where the rat poison was. He ate it. You picked it up, then the cat ate it, and then the cat died and then put it all over the web that we killed his cat. I'm not joking. That is actually pretty strange. I was like, oh, my gosh, we have to prove that we didn't kill his animal. I'm like, what's going on here?

George El-Masri [00:40:31] That's a pretty pretty strange. All right, Sarah, since you missed the last one, what do you find? You recently spent a lot of time wondering about

Sarah Larbi [00:40:43] right now when we're going to be able to go back and how normal are things going to go back when the social isolation gets lifted and the timeline and what the world is going to look like with that whole world is going to look like and then what conspiracy and woolgathering trying to pulverize. So I'm thinking about that.

George El-Masri [00:41:05] Yeah, it's such a weird time. Like, just just to think, a couple of weeks ago, our lives were completely different just so fast. Amazing. All right. So this one's for either of you. What doesn't exist but should

Sarah Larbi [00:41:19] what kills ingested

George El-Masri [00:41:23] or what do you think?

Kayla Andrade [00:41:25] The whole

Sarah Larbi [00:41:26] world, a whole like Ontario Helsingør idea where there is like actual

Kayla Andrade [00:41:31] like locations for everything

Sarah Larbi [00:41:32] housing related? I think that's a great idea.

Kayla Andrade [00:41:35] It is. We can we can test it out as a pilot program. There's four hundred and forty four municipalities. We can get ourselves down to two hundred and twenty two. And this is going to be investing into the housing industry right in the trenches and face to face, not like you trying to speak to a member of the landlord tenant board and the chair. And I'm like, can I have a phone call with the chair? Or like the chair doesn't talk to anyone. Like, why do we have a chair? Yeah, that's a good one, sir. I like that.

George El-Masri [00:42:07] All right. And last question. I'll I'll ask Sarah this. What success principal do you live by?

Sarah Larbi [00:42:14] I like to take action, learn and learn enough and take action, and I don't need to know everything and I am not a perfectionist by any means. And I think that's actually helped me is to just figure out where the knowledge is. That's just going to be good enough to get me to that next step, take action so much that way I would have if I would have waited for that perfect house, the perfect time to buy real estate, I probably would have not bought a deal yet, but I think that's what I would say.

George El-Masri [00:42:41] Some very cool. So let's before we end things, do you guys want to share what services you offer and also how people can reach you?

Kayla Andrade [00:42:52] OK, so you can find us on the Ontario Lalo's Watch Members Group and you can also give us a link on the Ontario Lalo's Watch public. Also, we started a little YouTube channel just so that we have over thirty thousand post comments and reactions in a 20 day cycle in the groups. We put our our interviews like this on to the YouTube so that everyone can pay attention and stay tuned to what our lobbying group name is going to be and how you can help and be on a subcommittee to get us further into lobbying the government for the rights for good landlords, good tenants and the first.

Sarah Larbi [00:43:26] Absolutely. And I think for me, if anyone wanted to reach out, they can go to my website, Sarah Labi, RBI dot com, and then they can also check out my podcast. One is called Where to Invest. The other one is the right club and they can check out the right club. We have monthly events, but now they're on Zoome. And then we also have some weekly online meetings as well every Wednesday from seven to eight. So we've got lots of stuff going on. It's free and it's educational for real estate investors across Canada. And we're going to be going online, see this also and have a whole platform forums where people can ask questions and post. We're going to have tons of information and we're going to have guest speakers. We're going to have just everything at your fingertips. So even before this whole covid, that was one of our big things is going to go online because there's a lot of people that can't come out to Burlington events. So we're going to have all of our registered recorded events as well that we've done in the last couple of years on the website. So lots of good things there.

George El-Masri [00:44:29] You guys are doing a great job. I've been tuning into a lot of the stuff you guys are putting together, so keep up the good work. I appreciate you coming on today and and sharing. I think we definitely need to see some changes. We can't I don't think we we can continue to go on with the way things are. So I appreciate you making an effort to really make a change. So thanks for all your work. And I wish you two the best. Stay safe and healthy and we'll talk again soon.

Kayla Andrade [00:44:57] Stay safe.

George El-Masri [00:44:58] As always, thank you for tuning in to this episode. I hope you got something good out of it. I wanted to offer you a free report that I've created just for you as a listener. The report is the beginner's guide to real estate investing. And hopefully this will help you identify what type of properties, what kind of investment properties would be suitable for you. And you can download it by simply visiting w w w well off. Don't see a forward slash guide again. Well off, don't see forward slash guide. Enjoy. And I look forward to connecting with you soon.

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