Seasons Greetings - The Address Property Management
For many of us, the holidays will look very different as it has been a challenging year.
Our wish for you this holiday season is that you will have the opportunity to do the things that delight you and that you will find happiness and joy in the simple things.
As always, we are here to address all your property needs, even during the holiday season. Feel free to contact us.
The Address Property Management Team
Maintenance and Repair- Who is responsible?
The Landlord and Tenant Board (Tribunals Ontario), states:
‘A landlord must keep a rental property in a good state of repair. All things that the landlord provides to the tenant must be kept in working order. This could include: electrical, plumbing or heating systems, appliances, carpets in the unit or common areas, walls, roofs, ceilings, windows, doors, locks, lighting, garages, laundry rooms, patios, walkways, or pools.’
It is also incumbent that the tenant informs the landlord, in writing, of any damages or if something is not working. Ultimately there will always be some form of normal wear and tear, for which the landlord would need to take full responsibility of repairing or replacing.
Any damages that is not due to normal wear and tear, whether done intentionally or by not being careful, is the tenant’s responsibility. The damage may occur by the tenant’s guests or people living with the tenant, either way, the tenant would need to replace the damaged item or pay the landlord the cost of the damages.
The landlord is responsible for maintenance of the appliances that are supplied to the tenant, in accordance to the Landlord and Tenant Board. It is cost effective to carry out preventative maintenance checks regularly.
Addressing any issues in appliances quickly, with inexpensive repair work which would prolong the appliances lifespan.
Common appliances in a rental unit would include:
At The Address Property Management, we have a team of qualified engineers carrying out assessments on appliances along with technicians, to make sure they are running effectively for tenants. We also produce appliance inventory lists, to monitor appliances. This saves the landlord time and money.
What's Happening in the Market
Housing Market Statistics
Statistics released by the Canadian Real Estate Association show national home sales continued running at historically strong levels in November 2020.
National home sales edged back 1.6% on a month-over-month (m-o-m) basis in November.
Actual (not seasonally adjusted) activity was up 32.1% year-over-year (y-o-y).
The number of newly listed properties also fell back by 1.6% from October to November.
The MLS® Home Price Index (HPI) rose 1.2% m-o-m and was up 11.6% y-o-y.
The actual (not seasonally adjusted) national average sale price posted a 13.8% y-o-y gain in November.
Monthly Stats Highlights
Canadian Banks Forecast Real Estate Price Drops
Canada’s largest bank’s risk scenarios show a larger downside than upside for real estate. RBC’s best cast scenario shows Canadian real estate prices rising 6.1% over the next 12 months. In a worst case scenario, the bank’s risk model shows a decline of 29.6% over the next 12 months.
National Bank sees home prices falling 5.2% over the next 12 months in their base case. In an upside, they still see prices falling, but just 1.5%.
In a worst case, they see prices falling 9.9% over the next 12 months.The upside is more bearish than the RBC forecast, but the downside is much smaller.
Canadian Mortgage Debt Grows as Deferrals Turn Delinquent and Mortgage Arrears Hit Highest Level
Canadians are borrowing mortgage credit at the fastest pace in years, in the pandemic. The balance of mortgage credit reached $1.71 trillion in September, up 5.67% from the year before. This is both a record high, and the highest 12-month growth since 2018. Part of the acceleration is due to lower mortgage rates, but the trend is also recovering from unusually low growth.
RBC filings show the majority of people on mortgage payment deferrals resumed payment, however a significant number did not. Mortgage and HELOCs worth $45.7 billion have seen their payment deferrals expire. Of those, 1.8% of the balance of deferrals have become delinquent. This is not all due to the pandemic though. The bank also disclosed almost a third of the delinquent mortgages, were delinquent before deferrals were given.
Canadian banks are reporting a rise in arrears, despite payment deferral programs. National arrears reported by the CBA reached 0.26% in May, up 12.63% from the same month last year. This is the highest level since 2017, when the rate was falling – not heading the other direction. Both the level of arrears and the growth rate are unusually high at anytime. However, it’s extremely odd with so many bank and government programs to help.
Read more here
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