# Government programs covering tenants



## Just a Guy (Mar 27, 2012)

I just finished reading this article on my favorite site:

http://www.easysafemoney.com/wheres-the-pain/

Normally I like what he says, but now I'm wondering. He's got a great situation, guaranteed income and other people monitoring his tenants, yet he's questioning it...

I'd love to have access to such a program and tenants.


----------



## NorthKC (Apr 1, 2013)

I actually question that a lot. Before government programs used to be strict and to supplement people while they get back on their feet. Now, there's no incentive to leave and why should they?


----------



## Berubeland (Sep 6, 2009)

This is what dysfunctional people do to a place, and I had to find a home for the 9 abandoned cats. There are too many decent hard working people for me to make difficult people my problems.


----------



## NotMe (Jan 10, 2011)

Berubeland said:


> This is what dysfunctional people do to a place, and I had to find a home for the 9 abandoned cats. There are too many decent hard working people for me to make difficult people my problems.


That video should be mandatory viewing for every 'passive income is so easy' wannabe landlord on the planet.


----------



## Just a Guy (Mar 27, 2012)

Well Berubeland, I don't know about you, but I've had my share of "decent, hardworking" tenants go bad too, despite proper screening. In my experience I'd say 10% of my tenants have been "problem" tenants at some point (meaning at least minorly annoying in some fashion) and 10% of those, the true 1%, have been nightmare tenants on par, or worse than your video. 

There are many cases of people who know how to scam others, appear nice, pass screening, etc.

http://www.cbc.ca/news/canada/british-columbia/story/2013/01/18/bc-badtenant.html

I think I'd like the idea of having the government pay for clean up, repairs, etc. instead of it coming out of my pocket, even if the likelihood of disaster happening is higher.


----------



## Berubeland (Sep 6, 2009)

Yes there is a chance that tenants "go bad" over time because of alcoholism, drug addiction, mental illness, relationship breakup etc. There is always a risk of that. There is a risk of your screening process going wrong and missing a bad tenant. One of the worst tenants I ever had nothing was wrong with the screening process. I looked and looked and looked at that application trying to figure out how to refine the process to make it more secure. 

However that is worlds apart from knowing that you are letting in problem and thinking that the government is going to pay for repairs etc. That's just dumb. The government has a habit of changing the rules as you go along. Even if that were not an issue, you still have the social problems that such tenants have to contend with. 

I've had tenants abandon their kids with other tenants, one set her place on fire with a cigarette and then insisted on sleeping in the burnt out apartment because the shelter wouldn't let her drink. Then there's the aforementioned cat man, the schizophrenic family. In 2011 every eviction I had was an Ontario Works recipient. In 2012 I had only one other eviction that wasn't Ontario Works. In all these cases the neighbors suffered through threats and damage and I could nothing to protect my good tenants. 

No decent tenant is going to put up with the crap these people force other people to deal with, it's not just the landlord and your place. The people who lived in the "cat man" house had to duct tape over their vents because of the smell. They had to put up with a creepy guy drinking beer in the back yard day and night. He was picking through the neighbors recycling and occasionally asking for money.He also smoked in the house even thought the house was non smoking. 

I had one tenant try to stab another tenant and get charged with attempted murder, it took me 9 months to evict the tenant who tried to stab the other one. 

So if you want to develop this excellent get the government the pay for the tenants no problem I would suggest that you rethink your strategy. That's just me. I'm ornery as hell. I have to be because I am the one that draws the line and decides what is and is not acceptable.


----------



## Rusty O'Toole (Feb 1, 2012)

I would like to have a program like that too. Not going to happen.

Berubeland been thru the same things myself so I stopped accepting tenants on social assistance. This did not go over too well with the social workers. When they insisted these people are different, you will have no problem, I guarantee etc etc. I would say, well you know them better than I do. If they are that great you won't mind co signing on the lease and giving me your bank account number or credit card number.

Never had one take me up on it.


----------



## Xoron (Jun 22, 2010)

Berubeland said:


> So if you want to develop this excellent get the government the pay for the tenants no problem I would suggest that you rethink your strategy. That's just me. I'm ornery as hell. I have to be because I am the one that draws the line and decides what is and is not acceptable.


Truer words were never spoken. The Govt likes to change the rules mid stride, just because.

All it takes is one really bad tenant to:
1. Not pay
2. Destroy your asset
3. Financially strain / cripple / bankrupt you

Tenant selection is MOST IMPORTANT part of the land-lording business. No amount of Govt promises will ever make a (good) landlord (who maintains their property) accept a bad tenant. It's just way to risky.


----------



## Cal (Jun 17, 2009)

Thank You, for reminding me how my tax dollars are being spent.

I don't mind helping people to get on their feet, however there should be a timeline to move on and stand on your own two feet, or at least be reassessed.

Canada, it is a great country in many, many ways, yet I fear that we will be known as the country that miss-spends its tax dollars. (which is remarkable considering some of the other countries competing for the same title, lol)


----------



## Eclectic12 (Oct 20, 2010)

Cal said:


> Thank You, for reminding me how my tax dollars are being spent....
> Canada, it is a great country in many, many ways, yet I fear that we will be known as the country that miss-spends its tax dollars. (which is remarkable considering some of the other countries competing for the same title, lol)


That's where some of the comments made while on a veteran's tour in The Netherlands were interesting.

One was ....


> Only The Netherlands would take in people from communist countries, put them up in an apartment and pay them money collected from the rest of the citizens ...


... another was ...



> I'm sick of the silly gov't regulations on farming, I'm selling my farm and moving to Canada where there is less gov't and no restrictions.



Cheers


----------



## marina628 (Dec 14, 2010)

When I interview for new tenants I look for somebody who has been on the job a long time and I never will take anyone on Government programs.I know a couple people who got into renting properties and they bought junk in bad areas and wonder why they can't get quality tenants.Before you spend a dollar you have to decide which sort of tenant you want .There is a big demand for single detached homes that do rent for $2000+ a month but not enough investors.Our agent approached us in June ,she had a potential tenant who was stuck in a one bedroom condo while trying to find a house to bring his family ,she tried to get us to buy a house so we could rent to him ,timing was not right though but he was willing to pay $4500+ for a 4 bedroom 3 bathroom on a 50 ft lot.


----------



## Just a Guy (Mar 27, 2012)

I agree, the last tenant I signed up has worked in the same place for more than a decade, they lived in the same place for 7 years and were only moving because the owner was selling their place. I learned early that being picky pays. 

Still the idea that you get steady cheques, guaranteed suite condition, and monitoring...that has some appeal. I don't think this is social assistance, at least not from the people who've approached me at any rate, but I've never taken a person on social assistance.


----------



## canabiz (Apr 4, 2009)

marina628 said:


> When I interview for new tenants I look for somebody who has been on the job a long time and I never will take anyone on Government programs.I know a couple people who got into renting properties and they bought junk in bad areas and wonder why they can't get quality tenants.Before you spend a dollar you have to decide which sort of tenant you want .There is a big demand for single detached homes that do rent for $2000+ a month but not enough investors.Our agent approached us in June ,she had a potential tenant who was stuck in a one bedroom condo while trying to find a house to bring his family ,she tried to get us to buy a house so we could rent to him ,timing was not right though but *he was willing to pay $4500+ for a 4 bedroom 3 bathroom on a 50 ft lot*.


How long will he and his family continue to do that before they realize they are better off getting a place for themselves and not continue to pay for your mortgage?


----------



## Just a Guy (Mar 27, 2012)

There are many reasons why renting may be more appealing than owning. 

http://www.easysafemoney.com/rent-vs-own-revisited/

I think I read somewhere (couldn't find the study) that the average Canadian moves every 7 years. Ironically, with standard appreciation and principle pay down, it takes about 7 years to break even on a real estate sale when you factor in realtor fees, legal expenses and penalties for moving a mortgage. For most home owners real estate turns out to be a negative or zero sum game. 

Of course, in the last few years of rocketing prices and low interest rates, it may not have been true, but with the future stagnant to negative prices and increasing interest rates it will probably equal out again.


----------

