The Death of the Small Landlord

Is This The End Of Small Real Estate Investors?

Maria Rekrut

Now, I feel that this article is even more relevant, than when I wrote this article a few years ago for the The plight of the small landlord has gotten worse.
With the Coronavirus and tenants not being evicted because of the orders from the governments.
The small landlords can’t maintain their homes, if they don’t get paid by their tenants.
How are they able to pay their mortgages? My fear is that in 2021 and 2022 there will be an increase in foreclosures.

In Canada, right now, it’s becoming more and more difficult for real estate investors to make money. The reason for this is that it’s becoming more challenging for real estate investors to obtain money from the bank.  Also, the Landlord and Tenant Board’s guidelines are making it increasingly difficult to evict tenants. This will force landlords to sell their properties because of a bad tenant issue, which will incur an effect on the serious small residential real estate investors.

What I predict for the future is that the small landlord will sell their properties and fewer people will invest in small properties, therefore, small real estate investors who own duplex, triplex or fourplex will sell their properties. This will force the tenants to move into either a larger apartment building or the tenants themselves will be purchasing a condo or house.

The perpetual apartment renter will end up in buildings owned by commercial real estate investors or will live in government owned buildings. This will produce a larger division between small and large real estate investors.

If we continue this way, the landlord will face more challenges in choosing their tenants. The small investors will be putting their money without making a profit on their properties. Myself as a real estate investor, I sold a number of my properties when I realized because of the new Landlord and Tenant Board guidelines I was less able to control what was going on with my properties. I decided that it was not fair for people who take financial risks to have other people determine how I run my business. So I decided to sell my properties and keep the money in the bank.   At this point, I’m investing in properties that are not regulated by the Landlord and Tenant Board.

I look forward to hearing from other real estate investors who feel the same way as I do and who want to share their war stories.

About Maria Rekrut

Maria Rekrut, believes Vacation Rental Investing is much more fun than the average real estate investing. Maria, known as the Vacation Rental Guru, writes blogs regularly about her stories and adventures in vacation home investing. Maria Rekrut believes that if she can become successful investing in Vacation Rentals so can anyone else by following her simple investing techniques. Maria is also a regular contributor to the Real Estate Blog
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