Archive for December 2023

Navigating the world of property maintenance can be daunting for many property owners, especially when contemplating whether to hire a property manager. It’s essential to understand the different approaches adopted in the industry. The common maintenance models that managers employ are: The In-House Maintenance Team Model The Maintenance Mark-Up Model The 3rd Party Maintenance Model Each model has its benefits and pitfalls. Here, we will explore them and shed light on why FVI Property Management, specifically, chooses its method. 1. The In-House Maintenance Team Model When property management firms employ their own team for maintenance, they handle a portion of the tasks related to a property. These typically involve routine repairs. Larger firms may tackle a broader range of tasks, while smaller entities might rely on just an in-house handyman. Despite this, most still contract specialized tasks to external vendors. It’s vital to inquire about their scope of services, their vetting process for service providers, and how these relationships impact you. Insurance and licensure are paramount. If they are executing large scale tasks in-house, are they a licensed General Contractor? Moreover, ensuring that every service provider is licensed and adequately insured is vital for the safety and protection of your property. Benefits of The In-House Maintenance Model High Control Over the Service: Rapid deployment for emergencies is more feasible. Service Provider Knowledge of the Portfolio: An in-house team tends to be familiar with properties, leading to more informed decision-making. Vendor Communication and Job Reporting: Streamlined discussions about repairs and decision-making are facilitated. Downsides of The In-House Maintenance Model Profit from Maintenance: This might lead to potential conflicts of interest, as companies don’t want their staff to be idle. Limited Specialization: Reluctance to outsource specialized tasks might arise. Limited Vendor Access: Availability issues might occur during vacations or sick leaves of the handyman. 2. The Maintenance Mark-Up Model Here, property managers benefit from the profit margins of third-party vendors. This model involves a vendor agreement, where vendors agree to work at discounted rates due to the volume of work they receive from the property manager. Benefits of The Maintenance Mark-Up Model Contract with Vendor: This ensures a level of accountability. Property Manager-Vendor Relationship: A good rapport often means swift and quality work. Large Vendor Base: Access to multiple vendors ensures competitive pricing and service availability. Downsides to The Maintenance Mark-Up Model Driving Up Costs: The model can sometimes push vendors to increase prices beyond market rates. Conflict of Interest: There might be a temptation to prioritize vendor relationships over owner satisfaction. Opaque Fees: Not every manager is transparent about mark-up costs. 3. The 3rd Party Maintenance Model This is the model embraced by FVI Property Management. We exclusively opt for this because: We select vendors solely based on our clients’ best interests. We prioritize quality in our vendor relationships. We ensure competitive pricing that’s verifiable. We champion transparency and always strive for what’s best for our clients. Benefits of The 3rd Party Maintenance Model Aligned Interests: There’s no conflict of interest. Managers have no hidden agendas. Diverse Resources: Access to various vendors offers multiple solutions. Purchasing Power Pricing: Savings directly benefit the property owner. Vendor Relationship: Good service from vendors due to the high volume of referrals. Downsides to The 3rd Party Maintenance Model Less Vendor Control: There might be some inconsistency in the quality of work. Potential Attention Gaps: Without monetary incentives, managers might slack in maintenance oversight. Diverse Vendor Familiarity: New vendors might lack property history insights. Many stellar property management firms operate under each model, ensuring that properties are meticulously managed. At Blue Anchor Property Management, our choice of the 3rd Party Maintenance Model is deliberate, aligning with our mission to always prioritize our clients. If our approach resonates with your values and you’d like to discuss further, please click on the “Contact Us” button below, and one of our team members will promptly get in touch.

Tenant insurance, often referred to as renters insurance, is designed to protect renters from various potential financial losses. While it covers many situations, there are specific exclusions tenants in Ontario should be aware of. Here’s a comprehensive look at what your tenant insurance might not cover: 1. Intentional Damage or Criminal Acts: If a tenant intentionally causes damage to their rented space or belongings or commits a crime that leads to property damage or loss, the insurance will not cover these acts. This includes damages from illegal activities or fraudulent claims. 2. Natural Wear and Tear: Normal wear and tear, such as fading paint, scuffed floors, or other everyday depreciation, is not covered. Tenant insurance is meant for sudden and unexpected events, not gradual deterioration. 3. Business-Related Items and Losses: If a tenant runs a business from their rental property, business equipment might not be covered under standard tenant insurance. Additionally, any business-related liability, such as a client getting injured on the premises, would also be excluded. 4. High-Value Items (without additional coverage): Standard tenant insurance policies have specific limits on certain categories of items, such as jewellery, artwork, or electronics. If you own high-value items that exceed these limits, you might need additional endorsements or separate policies. 5. Certain Natural Disasters: While tenant insurance in Ontario typically covers perils like fire, theft, or vandalism, some natural disasters like earthquakes or flooding from external sources might not be covered. For protection against such events, you’d need supplementary coverage. 6. Pest Infestations: Damages or losses caused by pests such as bedbugs, termites, or rodents might not be covered by tenant insurance. 7. Motor Vehicles and Their Contents: If you have a vehicle, it and its contents would typically not be covered under tenant insurance. You’d need separate auto insurance for that. 8. Roommates’ Belongings: Unless explicitly named on the policy, your roommates’ possessions won’t be covered under your tenant insurance. They would need to get separate policies for their belongings. 9. External Structures: If you’re renting a home that has separate structures like sheds or detached garages, the contents of these might not be covered unless they’re specifically included in your policy. 10. War and Terrorism: Most tenant insurance policies will have exclusions for damages or losses resulting from acts of war or terrorism. 11. Nuclear Hazards: Any damages resulting from nuclear reactions, radiation, or radioactive contamination would typically be excluded from coverage. 12. Government Actions: Losses or damages that result from government actions, such as property seizure or other legal actions, are not covered. 13. Personal Liability Outside of the Premises: While tenant insurance provides personal liability coverage, there might be geographical restrictions. Always check the specifics of your policy to understand where your coverage applies. Tips for Ensuring Adequate Coverage: Review Your Policy: Always read the fine print to understand exclusions and limitations. Ask Questions: Before finalizing a policy, ask your insurance agent or provider about any specific concerns you have. Consider Additional Coverage: If you’re worried about specific events not covered by standard tenant insurance, inquire about add-ons or separate policies. While tenant insurance offers vital protection for renters, it’s essential to understand its limitations. Awareness of what’s not covered can help you make informed decisions and consider additional coverage where needed. Always consult with an insurance expert or broker when selecting or modifying your policy.