Ideal Metal Finishes for Rental Properties: Enhancing Durability and Design

Hey Design Lovers!

As a seasoned designer of our own investment properties, I've learned the ins and outs of what makes a rental property not just functional but truly dazzling. The right metal finishes for your fixtures like faucets, door handles, and cabinet pulls? They're not just details—they're statement pieces that add both style and substance, ensuring your space stands out in the bustling rental market.

Here's my go-to guide for picking the perfect metal finishes that are as durable as they are chic, perfect for keeping your rental looking top-notch with minimal fuss:

1. Stainless Steel

   • Where to Use: Kitchen sinks, bathroom faucets, appliances

   • Why It’s Fabulous: Oh, stainless steel, how we love you! Resistant to corrosion and easy to clean, it keeps its luster despite the splashes and spills of daily life. It’s the superhero of metals in high-traffic areas, making it a no-brainer for any spot that gets a lot of action.

2. Brushed Nickel

   • Where to Use: Door handles, cabinet pulls, light fixtures

   • Why It’s Fabulous: With its subtle gleam and resistance to smudges and fingerprints, brushed nickel is like the quietly elegant friend who never gets ruffled. It blends seamlessly with any decor style, adding a touch of understated sophistication without stealing the show.

3. Matte Black

   • Where to Use: Door hardware, cabinet handles

   • Why It’s Fabulous: Matte black is the sleek, stylish choice for a modern edge. It’s fantastic for places less frequented by water to avoid those pesky mineral spots. Perfect for adding a bit of drama without the high maintenance, it's ideal for creating a bold statement in any room.

4. Oil-Rubbed Bronze

   • Where to Use: Bathroom fixtures, kitchen pulls, hinges

   • Why It’s Fabulous: Nothing says "warm and inviting" like the rich, deep tones of oil-rubbed bronze. It’s got a lovely, aged look right off the bat, which means it’s forgiving with fingerprints and smudges, and oh-so-charming in settings that aim for a cozy vibe.

5. Chrome

   • Where to Use: Kitchen faucets, shower heads, towel bars

   • Why It’s Fabulous: For a finish that shines bright and reflects your attention to detail, chrome is the way to go. Not only does it sparkle, but it’s also super easy to keep clean—just a swipe, and it looks brand new. It’s especially great in smaller, dimly lit areas where its reflective surface can literally light up the space.

Finishes to Sidestep in Rentals:

• Polished Brass: Beautiful but high-maintenance, it tarnishes if not polished regularly.

• Copper: Gorgeous yet temperamental, prone to reacting with everyday substances and tarnishing.

• Antique Finishes: While they have a unique charm, they often require more care and can show wear more easily.

Maintenance Tips:

• Encourage gentle cleaning practices to keep those finishes looking their best.

• Regularly check and update worn fixtures to maintain that fresh, cared-for look.

• Opt for reputable brands to ensure you’re getting both style and durability.

In the world of rental properties, it's not just about functionality but also about making a space feel special and cared for. Whether you're jazzing up a cozy studio or a sprawling estate, these metal finishes can really elevate your property, making it a hot commodity in today’s market. And remember, if you're ever in doubt about how to bring that extra 'wow' factor into your space, I'm just an email away. Let's make your property not just functional, but fabulous!

Xoxo,

Our Journey with the BRRR Investment Strategy

As we navigated our path into the world of real estate investment, we found a powerful strategy that seemed to click with Brandon's finance and economics background learned at university—the BRRR method. This approach of Buy, Renovate, Refinance, Rent not only aligned with academic theory but also proved its worth in practical application. Here’s how we leveraged this strategy to transform our understanding into successful real estate investments.

Buy: Spotting the Diamond in the Rough

Our adventure started with the crucial first step of acquiring the right property. We focused on finding homes priced below market value needing significant renovations, like a quaint house in a desirable neighborhood of a commuter town outside of Toronto. This strategy of selecting the right location wasn’t just about the immediate price—it was about long-term potential, a lesson Brandon’s university days made clear was vital.

Renovate: Making Smart Enhancements

Once we secured our property, we moved onto what could arguably be the most transformative phase: renovations. Here, we aimed to add significant value without overspending. Prioritizing updates in critical areas like the kitchen and bathrooms, where returns are usually highest, we managed our budget meticulously. We did all of the work ourselves and even bought a display Kitchen from a Kitchen and Bath store closing down at a steep discount. Then it was a game of jigsaw to fit the kitchen layout from the showroom into our galley kitchen. It was in this house we learned how to tile, replace stairs, and install kitchens!

Refinance: Unlocking the Property’s True Value

With the property’s value enhanced by strategic renovations, refinancing was the next step. This phase involved reassessing the property’s worth to secure a new, higher-value mortgage. It was a practical application of Brandon’s finance studies, where leveraging assets efficiently is key. By doing so, we were able to extract much of our initial investment to funnel into new projects, a cycle that kept our portfolio growing. It took a of few years for us to reach this step, we completed the renovations during those years while living in the house with Brandon working full time growing an angel investing community in Toronto, while Iuliana worked full time towards her graduate school degree.

Rent: Establishing Steady Cash Flow

Once the renovations were complete we moved back to Toronto and put our home of 3 years up for rent. Setting the right rental prices was critical. We needed to cover our costs and yield a profitable return, balancing market expectations with our financial goals. Effective property management became a cornerstone of this phase, as maintaining high tenant satisfaction and minimizing vacancies was crucial for consistent cash flow.

Reflecting on Our Journey

Through applying the BRRR strategy, we've learned that deep market knowledge is crucial at every stage. Brandon’s background in economics and finance often guided our strategic planning and risk management, while practical experiences refined our approach with each new property. Today, with the help of our many trusted advisors such as our lawyer, accountant, banker and our investment partners we have modified this strategy to work within today’s economic climate and housing market.

Our journey from the theoretical knowledge of a university classroom to the tangible success of real estate investing underscores the power of blending education with real-world application. Each project reinforces the lessons learned and prepares us for the next, illustrating that the right strategy can lead to substantial real estate success.

Q1 2024 Real Estate Market Stats Report

To check out the Q1 2024 Real Estate Market Stats Report click HERE.

Summary

Market Overview: We're seeing encouraging signs of recovery with both sales and inventory increasing compared to last year. The market is finding its balance, much like a well-coordinated family routine. The sales to new listing ratio has maintained a level that promises a fair play for both buyers and sellers.

Regional Highlights:

• Kitchener: Homes in Kitchener are appreciating, with median sale prices consistently climbing. This trend underscores a robust market environment.

• Waterloo: Detached homes in Waterloo have seen a significant price increase, especially in the eastern regions. However, Uptown Waterloo offers more competitive pricing, presenting opportunities for buyers.

• Guelph: Sales have surged in South Guelph, showing vibrant market activity. Conversely, North Guelph presents a softer market, where buyers might find more value.

Looking Ahead: Our analysis suggests a potential easing of interest rates by mid-year, which could enhance buying power and fuel further market activity. The introduction of 30-year amortization periods for first-time home buyers could also shift market dynamics, offering new opportunities for entry-level buyers.

The Art of Design: Maximizing Property Value Through Layout Changes

Existing Layout

New Concept Design

Hey Design Lovers!

As a bustling mom of two adorable little girls and a designer to boot, I've come to realize just how much a property's layout can pump up its market value and charm. Those smart tweaks and changes can really turn a place around, making it both more functional and stylish, which of course, draws in those higher offers we all dream about.

Take it from me, opening up a once-squeezed kitchen into a bright, airy open-plan living space is a game-changer. It’s all about creating a space where memories are made, where laughter fills the air as you cook, and where your kiddos can play or do their homework while you prep dinner. Modern buyers and renters totally dig this vibe because it speaks to a connected and vibrant family life.

And because working from home has become the new norm, adding a chic ensuite bathroom or carving out a cozy home office space can really make a property stand out. It’s about tapping into what people need now, like that perfect Zoom background or a quiet retreat to unwind after a busy day.

By reimagining the floor plan, you’re not just making better use of the space; you're also creating a welcoming environment that feels bigger and more open. My secret? Use light, soothing colors, add some clever lighting solutions, and pick furniture that’s as functional as it is gorgeous.

These tweaks don’t just up the ‘wow’ factor; they significantly bump up your property’s value. It’s all about striking the right balance between what feels fresh and exciting, and what feels like home. Whether you’re flipping a house or jazzing up a rental, staying on top of design trends and making those savvy modifications can really make your property the hot ticket in a competitive market.

And let's be real, keeping up with design trends while managing soccer practice and ballet recitals is no small feat! If you’re looking to revamp your space but need a little expert advice, don’t hesitate to reach out.

Need some fab design tips or a full-on transformation? Contact me at Iuliana Veronica Design, iuliana@chesterfieldgroup.ca. Let’s make your property shine and stand out—because creating beautiful, functional spaces is what I live for!

Xoxo,

Property Management Pro Tip: How to convert your rental controlled property

In Ontario, navigating the rent control laws requires strategic planning, particularly if you're looking to maximize your rental income. The province stipulates that landlords can only increase a tenant’s rent after at least 12 months have passed since either the tenant moved in or the last rent increase was applied. Additionally, landlords must provide tenants with a written notice of any rent increase at least 90 days in advance. Typically, the allowable increase is capped at a rate predetermined by the government. However, there are exceptions that property owners can leverage.

Exemptions from Rent Control

It's important for landlords to note that residential buildings or units that were first occupied for residential purposes after November 15, 2018, are not subject to these rent control limits. This exemption presents a unique opportunity for property owners. By converting an existing property into a fourplex or by creating new residential units in a building first used after this date, landlords can freely set rental rates. This flexibility is not available for older properties, making it a strategic advantage for those developing or extensively renovating properties.

Strategic Benefits of Conversion

Converting a rent-controlled property by adding new units or reconfiguring existing spaces can be a profitable strategy. For instance, subdividing a large unit into smaller, more numerous apartments, or adding new units within the same building footprint, allows property owners to reset the rental terms based on current market rates, free from the constraints of rent control regulations. This is particularly advantageous in high-demand areas where market rates are significantly higher than controlled rates.

Planning and Compliance

To successfully convert a property and take advantage of the exemption from rent control, landlords should ensure compliance with all local zoning and building codes. This often involves securing permits and possibly engaging with architects or contractors to manage the construction and renovation processes effectively. Understanding and adhering to these regulations is crucial to avoid legal pitfalls and to ensure the viability of your investment.

Ethical Considerations

When considering the conversion of rent-controlled properties for maximum yield, it's crucial to approach the process with a strong sense of ethical responsibility. While Ontario's rent control exemptions offer strategic opportunities for property enhancement and financial gain, landlords must weigh these benefits against the potential impacts on tenants and the broader community. Ethical considerations include ensuring that renovations or redevelopments do not unjustly displace existing tenants, particularly those who may have fewer housing alternatives due to economic constraints. Additionally, landlords should consider integrating affordable housing units within their projects or offering fair transition plans and assistance for affected tenants. Maintaining transparency about changes and improvements, providing ample notice beyond the legal requirements, and engaging tenants in discussions about upcoming developments can also contribute to a more positive and ethical transformation of rental properties. Balancing profitability with compassion and respect for tenants' rights not only adheres to legal frameworks but also fosters long-term goodwill and sustainability in property management practices.

Contact Us for Expert Guidance

Managing a rental property, especially through significant changes like conversions, can be complex. Chesterfield Property Management offers expert guidance to help you navigate these challenges, ensuring that your property not only complies with regulations but also reaches its maximum income potential.

If you need more specialized advice or assistance with your property management needs, reach out to us at Chesterfield Property Management at pm@chesterfieldgroup.ca. We’re here to help you optimize your investment and achieve your property management goals.

By exploring these avenues, landlords can significantly enhance the profitability of their rental properties, turning regulatory knowledge into a competitive advantage in the real estate market. Whether you’re just starting out or are looking to expand your portfolio, understanding and applying these principles can lead to substantial returns on your real estate investments.

April Interest Rates

The Bank of Canada (BoC) has decided to maintain its current interest rates, with the Overnight rate remaining at 5% and the Prime rate at 7.20%. This decision was highlighted in the bank's recent announcement, which provided several critical insights into the country's economic outlook and the potential direction of monetary policy.

Interest Rate Outlook

The BoC has indicated a willingness to consider lowering interest rates by June, buoyed by a notable decline in inflation rates. This potential shift in policy is seen as a response to the easing inflationary pressures, suggesting a more accommodative monetary environment could be imminent if current trends persist.

Data Direction

Recent data suggest a downward trajectory in core inflation, aligning with the BoC’s projections of a gradual decline. This is anticipated to coincide with strengthened economic activities as the year progresses, potentially bolstering the case for a rate cut.

Key Considerations

Although inflation remains a central concern for the BoC, the urgency for further rate hikes has diminished. The focus is now on observing consistent signs that inflation rates are stabilizing or declining, which would justify a shift towards easing the rates.

Forecast Implications

The possibility of a rate cut in June is contingent upon continued positive signals in core inflation metrics. Nonetheless, this decision could be influenced by global economic developments, particularly those related to inflation dynamics in the United States, which have a significant impact on global markets and monetary policies.

Expanding Your Real Estate Portfolio

At Chesterfield Real Estate, we specialize in helping clients like you expand their real estate investments. Whether you’re considering entering the property investment sphere or you're an experienced investor looking to grow your portfolio, our expertise is grounded in a decade of successful investments. We manage a diverse range of properties, from residential flips to multi-use buildings, ensuring that every investment is strategically timed and tailored to maximize your financial gains.

Comprehensive Investment Support

Investing in real estate is not merely a transaction, but a critical part of your financial strategy. Our team at Chesterfield is committed to guiding you through every step of the investment process. We help you select the right properties, advise on the optimal timing for acquisitions and sales, and focus on strategies that enhance your wealth creation opportunities. Our goal is to transform your investment goals into substantial financial success.

Contact Us

If you need more detailed guidance or wish to discuss your investment plans, feel free to reach out to us at Chesterfield Real Estate at invest@chesterfieldgroup.ca. Let’s work together to unlock the full potential of your real estate investments and achieve remarkable financial growth.

This expanded insight into both the macroeconomic factors affecting your investments and the direct support we offer at Chesterfield Real Estate aims to provide a holistic view of the opportunities in today's market. Whether you're gearing up for your first investment or seeking to expand an existing portfolio, understanding these dynamics can significantly influence your decision-making process and investment outcomes.

Frustrating financing

I’m writing this post from beautiful Sayulita, Mexico today. A long time ago we decided we wanted to set up a life that allowed us to leave Canada for a few months in the winter and our investing portfolio has allowed us to do that. While for the most part we aren’t working during our time away, we are still managing properties and working on deals from a far. One of the deals we are working on is currently falling apart. Don’t you hate it when that happens? 

We co-own the mixed use commercial residential building and our partners in that deal are starting to think about their exit strategy. We saw this as an opportunity to buy out their half and be full owners increasing our net worth. Our lender told us we could make this happen just a couple weeks back and now is telling us a different story. The original deal would require $80k from us but now it’s going to take $200k. That’s a big jump!  Humph! Our minds are working over time trying to think of another way to pull this deal back together but so far we’ve got zilch. 

Here are the options we’ve considered so far: 

• First, attempt to turn this back in our favor by seeking out other financing options.

• Second, do a vendor take back mortgage from the partners. This entails paying the partners out over time. They get the price they want plus interest but it is a riskier way of doing things.

• Third, leverage other investments in our portfolio. This is probably our least favourite option because we don’t want to tie up capital. The intent is to pay down the mortgage with the money made from tenants not with our cash.

• Fourth, continue to be partners. Fortunately, our partners are not in a rush to exit and we quite enjoy working with them :)

• Fifth, sell the property. This option obviously does not achieve the original goal but could be a feasible work around.

This is where we are at this week. Stay tuned to hear how this all turns out! 

See you on the flip side! 

Finding good tenants

When we’ve spoken to people in the past about their experiences with real estate investing we get one of 3 answers usually. First, they have no experience. Second, they have done a few smaller deals and currently have tenants. Third, they tried the rental thing and had a horrible experience with tenants and decided to get out of the game. 

We’ve had our fair share of bad experiences with tenants - breeding of large Malamute dogs, tattoo shop running out of the basement, rat problems from uncleanliness, severe damage from carelessness (ruined flooring, drywall holes), kitchen fire, nuisance calls, flooding from misuse, bylaw notifications etc. If we haven’t scared you off yet and you’re still interested in owning rental properties we’ve got a few tips to share! 

We have had 8 rental properties which made up 12 rental units over the span of 5 years. During this time we have learned a few things about renting. We mainly use kijiji but recently have started using Facebook marketplace to advertise our rentals. We’ve never felt the need to pay for advertising our listings and have never had a rental sit empty. 

The main things to keep in mind when getting ready to find a tenant include the following:

• You HAVE to use the standard Ontario lease agreement. You cannot create your own lease or make up you’re own rules. For example, you cannot refuse to rent to someone because they have pets. You cannot ask for first and last months rent or a security deposit on top of last months rent. Legally, you can only ask for last months rent up front.

• DO ask for and follow up on past landlords and current employers. When speaking with past landlords ask about payment history/reliability, damage accrued, “would you rent to them again”. It is illegal for the landlord to lie to you so this can be a good opportunity to get information. When speaking with their employer you want to find out whether they’re currently employed and how much they make.

• A lot of landlords ask for credit checks. We do as well but we don’t place extreme importance on this. We’ve had A++ tenants who had poor credit scores so this is not always a great indicator. In fact our top two tenants both had bad credit history but we would rent to them again happily.

• One of our favourite ways to scope out a tenant is to meet them at their current home to review the lease agreement. This way you can see what kind of condition they keep their home in and if they’ll take good care of your property.

• Meeting in person a few times can be helpful. Try and get into conversation with them to learn about them, what is important to them, and what their lifestyle is like. This is where we ask about pets, smoking, how many people will be living in the home, how many vehicles they have, and how they make money. When inquiring about pets we clarify that any damage caused by the animal will be the responsibility and cost of the tenant.

Even when taking all of this into consideration there is no guarantee you will get tenants who will take good care of your property. This is a part of renting and if you want to see it through it is best to accept that at some point you will have to deal with a problem tenant. This part of the investment is the most important as a bad tenant can significantly reduce your ROI and strain your patience. On the flip side, having an A+ tenant in a newly flipped rental property can provide a great ROI and make you feel like a genius. 

Want a quick cheat sheet for your tenant screening? Click Here

See you on the flip side,

December Market Stats

Overall we’re still seeing an upward pressure on prices across the region in KW, Cambridge and Guelph. This is due to a decreasing level of inventory over the winter months. There has been a 45%, 41%, and 37.89% month over month decrease in detached homes available in KW, Cambridge, and Guelph respectively, this past December.

There may be a buying opportunity with condos in Cambridge as prices are down 12.86% month over month. Condo prices in KW and Guelph were up at 4% and 10.32% month over month, respectively. Guelph still has the highest detached home prices at a median of $965K in December, KW close behind at $935K and Cambridge with lowest median price at $870K.

Township homes are no longer a good buy as we saw in November. The median price for detached and vacant land has risen since November. Inventory of detached homes and vacant land was also down in December. Not surprisingly, there is a surplus of agricultural/farm land available.

For more detailed information click the image below:

See you on the flip side,

The Blue Smurf Flip Part 2

In the last post about the blue smurf property flip we discussed the lengthy and costly permit process. In this follow up post we’ll discuss the special considerations for each unit and the final design choices.

Basement Unit 

The basement of the blue smurf house was unliveable when we purchased the property. It was creepy, wet, smelly, and didn’t have any drywall or proper floors. We wanted to make a third unit downstairs complete with laundry and a bathroom. So the first few things we did when we started on the inside of this property was reinforce the foundation wall to carry the load from the beam structure above, pour a whole new foundation floor, and add a french drain to solve the leaking problem. We added drywall, lighting, flooring, electrical, and plumbing for an additional bathroom and laundry. We also moved the entrance into the basement from the rear of the building to the side of the building to allow more space in the back for parking and a ramp for accessibility. 

Reinforcing the foundation in the basement.

Commercial Unit

On the main floor we were changing the entire layout plus removing a kitchen, adding a second bathroom, moved the entrance from the back of the building to the side, and added an addition to the front of the building. We also had to add a rooftop unit HVAC system which would do heating, cooling and fresh air exchange. During the permit process we learned that we would have to use this special commercial unit that did the fresh air exchange because it was going to be used for a health clinic… to this day, the rooftop unit looks ridiculous sitting beside the building (too big to actually go on the roof) because it is meant for large commercial buildings and this property is the size of an average house. At least we know the air quality in the clinic is far beyond what is required. To allow this HVAC system the space to work we outfitted the clinic offices, kitchenette, and bathrooms with dropped ceilings. 

First picture - converted into 2 bathrooms and a kitchenette
Second picture - converted into office that looks into the studio space
Third picture - converted into reception area, door now walks into front studio

Upstairs Unit

We mainly left this unit as it was. We had to do a bit of a layout tweak so that we could add  separate HVAC and electrical systems. We also upgraded all of the finishings throughout the unit as it was in rough shape when we bought it. To finish off the outside we redid the stairs/decking to this unit along with the main floor decking. 

Kitchen in upper unit

Finishings

In the commercial unit we were required to use special doors that were large enough to allow a wheelchair to move through easily and that were also fire rated. In addition, one of the offices had a window that looked out over the wooden ramp and we had to put an automatic fire curtain over the window for further fire safety. On the floors throughout the entire building we used vinyl since many months in Ontario are wet with snow or rain and they are the most durable. We chose a nice light wood grain vinyl to keep the units bright and fresh. The upper unit and commercial unit kitchenette were both outfitted with granite counter tops, wite cabinets, and stainless steel appliances. The flooring from the rest of the unit continued through the kitchen and bedrooms. 

Exterior

To finish off this project we gave the outside a complete facelift. We painted the brick white, did the addition in white siding, replaced all the windows and did black trim on the new ones. For the parking we paved the driveway and entire back, added curbing, added outdoor lighting for safety, painted parking spots, and did a brand new wood ramp/stairs to access the units. We added garbage organization units to the side of the building for each unit and labeled mailboxes by the main entrance. In the front, the city required us to add some “long grasses” to a flower bed. 

This was one of our top 3 biggest projects to date and also ended up being one of our favourites. We definitely learned a lot from this project which will change our perspective going forward on how to approach commercial property.

See you on the flip side,