Many of us only think of our RRSP or TFSA accounts only when tax time rolls around, but setting up the right accounts and considering your strategy before the tax rush is a worthwhile idea. In 2009 the Canadian government introduced the Tax-Free Savings Account (TFSA) which is currently available in 3 general flavours:

1) Savings
2) Mutual fund
3) Self-directed

Aside from creating additional confusion for Canadians about where to park their savings, the TFSA has been a great tool for the financially savvy. I personally prefer real estate investments over stocks, bonds and other paper assets, but enjoy having my Tax-Free Savings Account as a place to accumulate savings between the purchase of one rental property and the next. As I gathered statements for each of my accounts in preparation for another rental property purchase last week, I realized how my TFSA has served me well in saving for some big purchases.

Whether you are saving for your next rental property, a down payment on a place of your own residence, a new car, or braces for your kids, I wanted to share some basic knowledge that can help everyone make the most of their Tax-Free Savings Account. The best place to start is to understand each of the 3 main types of TFSA accounts that are currently being offered.

1) Savings TFSA

The most basic type of Tax-Free Savings Account, and the type most people are familiar with is the regular savings account. These accounts work just like a savings account at any bank where interest is earned on the balance you keep in the account, but the interest you earn will be tax free. With the record low interest rates seen over the past couple of years, it doesn’t take a genius to make a better return using one of the other options. Plain vanilla savings accounts generally only make sense for your TFSA if you will soon need access to your funds, or wish to remain very conservative. If you can wait on the funds a while but still want to keep your money safe, you can consider purchasing GICs in one of these accounts to boost your interest earnings.

2) Mutual Fund TFSA

If you’re in it for the long-haul, a better option may be the mutual fund TFSA. I am not a fan of mutual funds due to the associated management expenses and fees, so I’d recommend looking for a mutual fund TFSA which allows you to invest in index funds. If you’d like to earn a higher return over the long run without much active management, buying index funds within a mutual fund TFSA may be a great choice.

3) Self-Directed TFSA

Finally, if you want more control over your own investments, a self-directed TFSA is probably what you are looking for. With these accounts you can make your contributions and then invest your savings as you see fit. Most self-directed tax-free savings accounts are offered through discount brokers and have reasonable trading fees. Within these registered accounts you can trade anything but futures and forex. The one thing to watch out for with these accounts is admin and withdrawal fees.

Beware of Fees

When setting up a tax-free savings account of any type, be sure to read the fine print. Be sure to avoid administration, transfer, and trade fees early on in your TFSA’s life since these fees can easily eat up any tax savings in the early years. Most Canadian discount brokerages offer self-directed accounts so be sure to shop around to find the best account for you.

My TFSA Weapon of Choice

I have been using a Questrade Self-Directed TFSA since it was introduced in 2009. The account has no annual fee or inactivity fees, a low balance requirement of $1,000, easy funding through online banking, cheap trades (currently $0.01/share with a $4.95 minimum and $9.95 maximum), and good customer service. In addition, they also offer a $50 Questrade Referral Bonus if you sign up through a referral. Sign up using the banner below and you’ll be credited with $50 in free trades.

If you are looking for a great way to make the most of your TFSA, go self-directed. And, if you’re looking for the way to make the most of that, sign up for Questrade, the $50 in free trades is a great way to get yourself started. Minimizing your fees early on will maximize your returns and help you get the most out of your TFSA.

photo credit: Ksionic

Whether you have taken the plunge and become a full-time investor, or currently use your evenings and weekends to acquire and manage properties, as an active investor you are likely to be a busy person. If you’re a veteran investor, you may have the luxury of a little more free time by now, but in any case most of us get a lot of email on a daily basis.

With increasing quantities of email, it is helpful to have a system which is capable of separating important messages and making sure those get your attention first. On Monday, Google announced they would be rolling out Gmail Priority Inbox for all mail users this week. As a big fan of Gmail, this caught my attention and I immediately began to think about how this would make life easier for myself and other investors.

How Gmail Priority Inbox Works

If you haven’t heard about this new feature, the following video from Google does a pretty good job of explaining how it’ll work:

In short, unread messages deemed important will show up in a separate section at the top of your inbox. You can add or remove the important tag from messages, and over time Google’s algorithm will do a better job of predicting which messages it should and shouldn’t display as important. You can also use filters, one of Gmail’s best perks, to adjust which messages end up getting priority.

Taking Advantage of Gmail Priority Inbox as an Investor

This feature hasn’t been activated on my account yet, but here are a few ways I imagine this new addition will be useful:

1. Prioritize messages from your Real Estate Investment Team

As a real estate investor you probably have key contacts such as Realtors, mortgage brokers, home inspectors, laywers, property managers, or handymen who you do business with on a regular basis. If you don’t, check out my series on Building Your Real Estate Investment Team to learn more about assembling a great team of competent professionals to support you.

By setting up filters to prioritize emails from these people, you can ensure they’ll get your attention first. If you want to see that commitment letter from the bank as soon as it arrives, or get updates from your property manager right away, all you need to do is add a filter to prioritize email from these people by email address.

2. Prioritize responses to your marketing

If you have a rental ad up to fill a vacancy, advertise rent-to-own opportunities, or get the attention of motivated vendors, chances are they can contact you by email. You can use the same approach to prioritize these responses so they get your attention first.

In this case you can filter by keyword to make sure these messages get the priority they deserve. Choose a keyword or phrase which is unique to your advertising campaign in order to avoid falsely classifying messages as important. When a new prospect replies, their message will make it to the top of your inbox and you can respond quickly.

3. Use filters and labels to clear inbox clutter

If you receive regular marketing, newsletters or blog feeds to your email inbox that are not time sensitive, you can save some energy by having these skip your Inbox and go straight into another folder. Filter by address or topic to sort these recurring emails into folders which you can review when you have the time. By automatically labeling and archiving these items, you can keep your inbox clear making it easy to pick out the important items which need your attention.

How Will You Use Priority Inbox?

This topic brings a few questions to mind:

• Which email provider do you use, and why?
• Do you think Gmail’s Priority Inbox will help you be more productive?
• What sort of emails will you give priority to?

Keep an eye out for Priority Inbox in your Gmail account, and let me know how you plan to use this great new feature by adding your comment below.

When it comes to making smart real estate investments, economics play a very important role in creating winning deals. There are always ways to make money in real estate, but sophisticated investors take the time to understand economic fundamentals and then swim with the tide rather than against it.

The following is a list of 7 sources for economic information that every Canadian real estate investor should be aware of. Most of these reports provide national and regional perspectives, while others drill down to the metropolitan level. A basic understanding of economic trends will allows you to make informed investment decisions, and these links are a great place to start.

1. RBC Economics Research

• Housing Trends and Affordability – This quarterly report highlights trends in housing affordability (the percentage of average income required to pay for an average piece of real estate) in provincial and major metropolitan housing markets. Affordability is a key indicator which savvy investors pay close attention to since it can indicate an overheated market and provide clues to a region’s appreciation potential.
• Economics Digest – Updated monthly, these summaries provide an overview of reports published during the month by RBC Economics Research. Even if you are not an economics buff, these reports will give you a glimpse into the headlines and a brief summary of the key findings from each report. Full links are provided if you find something that catches your attention.

2. TD Economics Commentaries and Publications

• Data Commentaries – Economists at TD offer commentary on various economic indicators. Commentaries on Canadian Retail Housing, Canadian Housing Starts, and Canadian Employment are particularly relevant for Canadian real estate investors.
• Regular Publications – Two forecast publications from TD economics are particularly useful. The Quarterly Economic Forecast and Long-Term Economic Forecast each provide analyst expectations for future performance of key indicators. The Quarterly Economic Forecast also contains commentary on important items such as interest rates, GDP, and employment statistics.

3. CMHC (Canada Mortgage and Housing Corporation) Publications and Reports

• Housing Market Outlook – Published semi-annually, Housing Market Outlooks are available for each region and most metropolitan areas. The report focuses on new and resale housing performance and assessing the strength of the corresponding local economy.
• Rental Market Reports – These in depth reports are updated annually and contain a wealth of economic insight at a metropolitan level. Several key indicators such as affordability, employment, vacancy rates, and rental rates are covered in great detail at the local level.

4. Scotia Economics

5. CIBC World Markets Economics & Strategy

• Household Credit Analysis – Rather than providing economic insight into the economy of our country or cities, this periodic report provides insight into the net worth of individuals and examines consumer debt trends.

6. Teranet – National Bank House Price Index

• Teranet - National Bank House Price Index – This website provides a price index for major metropolitan centres across Canada and discloses their methodology for calculating the index. Best of all you can download the raw data in Excel format and dive into the numbers for presentations or your own research.

7. Real Estate Investment Network (REIN)

• Exclusive REIN™ Reports – The Real Estate Investment network focuses on economic fundamentals and publishes some great reports as a result. Examples include several analysis on the effects of local transportation changes across Canada, and their provincial Top Investment Towns reports. By diving into the facts and figures surrounding infrastructure changes and local economies, they provide succinct summaries which are very helpful to local investors.

As a real estate investor, you owe it to yourself and your investment partners to stay informed, and these seven resources are a great place to start. How else will you make smart decisions based on the facts rather than emotion and opinion?

photo credit: ShironekoEuro

Any savvy real estate investor knows that keeping units rented is the first ingredient in the recipe for strong cash flow. It’s also no secret that some units rent faster than others, but why?

In a North American study, tenants ranked the importance of each of five factors in their leasing decision. Many landlords are surprised to see how these five factors rank in terms of impacting a tenant’s decision on which unit to rent.

How Tenants Choose a Rental Unit

There are 5 key factors which influence the leasing decision of a prospective tenant. Consider each of these items when purchasing and managing your own units and ask yourself a few questions from the perspective of the type of tenant you’d like to attract.

Source: Derek Lobo

1. Curb appeal (28%) – What is the general visual impression of the property when you first drive up? Does it look well maintained or run down? Does it look like a place you’d be proud to call home?
2. Common areas (28%) – In the case of an apartment building what condition are the common areas in? Is the lobby clean and well maintained? How about any hallways, stairways, laundry facilities and other shared elements?
3. Security / parking (22%) – How secure does the building feel? Do you feel at ease or is there a constant need to look over your shoulder? Would you be comfortable leaving your car parked overnight?
4. Apartment appeal (18%) – From the time you open the front door, what is your general impression of the unit? Is it clean and well maintained? Do doors, faucets and appliances work well? Does it look like the landlord cares?
5. Amenities (4%) – What features does the building offer? How does this stack up to the competition? What great amenities exist outside of the building but in the nearby neighbourhood?

What Landlords Can Learn

While the results of this study apply directly to apartment buildings, there are some important lessons for both single family and multi-family investors.

First impressions count. Over 80% of a tenant’s decision is made before they even enter the unit. This means it is important to make sure curb appeal (and common elements in a multi-family building) are up to par before fussing over suite finishes. If the property looks like it is ready to be condemned, having a suite with granite counter tops, stainless steel appliances, oak flooring, and vaulted ceilings isn’t going to help as your prospect blows their showing appointment and speeds off to the next address on their list.

Once your curb appeal is up to snuff, focus on providing safe units your target tenants will be proud to call home and you’ll sleep well at night while the rents roll in month after month. To fill those vacancies quickly, learn how to market your rental properties by Selling the Sizzle, Not the Steak.

Hit "pause" on your filler words

This morning at Bay Street Breakfast Club, our Tipster provided an excellent tip which spurred the idea for this blog post. In keeping with the Toastmasters theme, he stated that “when speaking, a pause defies logic because you get something for nothing.” This member suggested that rather than use filler words such as uhms and ahhs, we simply pause. A well timed pause can add style and impact to a formal speech or your side of any conversation.

At a Toastmasters meeting, one of the members will fulfill the role of Grammarian. Among other things, the Grammarian is responsible for counting filler words such as uhms and ahhs. What sounds like a very simple role can actually be quite difficult since there is some debate on what qualifies as a “filler word”.

Types of Filler Words

The way I see it, filler words are any crutch used to bridge a gap when speaking. Since joining Toastmasters, I have become much more aware of minding my use of filler words and made a more conscious effort to avoid filler words when speaking. Despite my efforts I still have plenty of room for improvement.

I like to consider a broad variety of words to be filler words and classify them into a few different types:

• Simple filler words – uhm, er, ah
• Bridge filler words – so, but, and
• Meaningless filler words – like, you know, basically, actually, literally

Why We Use Filler Words

Simple filler words are neutral vowel sounds and seem to be a natural way to bridge a gap in speech while we figure out what to say next. In our (civilized) every day conversations, two or more parties generally take turns speaking. Rather than allowing for a pause we often use filler words to bridge a short gap in speech to make sure we don’t lose our turn at speaking.

Bridge filler words are also used to keep our turn in a conversation. Unfortunately after a great deal of repetition, the use of these words becomes a habit and they find their way into formal speeches. Stringing together sentences with a variety of bridge words leads to incredibly long run on sentences and can make it tough for your audience to follow.

In addition, there are several other words which are frequently used out of context and also end up serving as filler words. These meaningless filler words amount to nothing more than a bad habit, but can be eliminated with a little conscious effort.

Why Filler Words Should be Avoided

Reducing your use of filler words may not be your top priority in life but if you’d like to become a better speaker it is important to mind your uhms and ahs. Minimal use of filler words is tolerable and can even help you connect with your audience. On the other hand, excessive use of filler words is considered to:

• Be annoying
• Weaken your presentation
• Detract from the power of your argument
• Cause your audience to lose interest

Filler words are certainly a hurdle to being a great speaker, but not impossible to overcome.

5 Tips for Reducing Your Use of Filler Words

Here are 5 simple ideas for reducing your use of filler words:

1. Catch yourself – The first step to reducing your use of filler words is to catch yourself in the act. When you start to pay attention, you’ll be surprised how often fillers make their way into your conversation.
2. Speak the filler word silently – Once you start to become aware of your use of filler words, try eliminating them by speaking the filler word silently in your head and then continuing with what you were going to say. Most of the time filler words can be omitted without causing any gross grammatical errors.
3. Replace filler words with pauses – As you get better at skipping over filler words you can begin to directly substitute pauses. Often the places where filler words creep in also make effective places for brief pauses.
4. Plan your speech – If you are delivering a formal speech or presentation, then you have the opportunity to organize your material and plan the flow. Taking the time to layout your content and create well planned segues will help you to eliminate filler words during your delivery.
5. Join Toastmasters – Finally, if you are not already familiar with Toastmasters I would suggest joining a local Toastmasters club. Following a proven model and having a supportive group that will help you track your use of filler words is the best way to improve your speaking skills.

A Challenge

My challenge to you is this; count your uhms, ahhs, and other filler words for the rest of the day and see if you can catch yourself before letting the filler words out. Remember that less is more in many cases. Silence is golden – even in the form of a brief pause.

If you took the challenge or have a tip of your own, you can share it in the comments section below.

photo credit: Andres Rueda

This post was written for The Rentables Apartment Blog as the ninth part of a series entitled “Building Your Real Estate Investment Team.”

In the ninth and final part of our series on Building Your Real Estate Investment Team we will take a look at how to round out your team and provide a quick recap of our series. As your real estate portfolio grows, your need for additional team members may grow as well. Whether you need a second Realtor who is an expert in the new region you’re looking to invest in or want to add an administrative assistant to help with some of the day-to-day tasks of running your real estate investment business, the principles we’ve covered throughout this series still apply.

Real Estate Investment Team selection criteria
As we’ve covered in each part of this series, here are 6 criteria to consider when selecting members for your real estate investment team. Look for professionals who:

1. Own investment real estate themselves
2. Care about your goals
3. Have the appropriate qualifications
4. Have specific experience working with investment properties in the area
5. Have reasonable fees
6. Provide positive chemistry

Team Members
Throughout this series we’ve covered the details on selecting a number of professionals for your team. These pros include:

• Mortgage Brokers
• Realtors
• Lawyers
• Home Inspectors
• Insurance Brokers
• Property Managers
• Accountants

As you progress in your real estate investing career, you are bound to work with several other parties to accomplish a variety of tasks. The good news is that you can still use our 6 criteria as an initial screen when seeking out new relationships. Whether you are looking for general contractors, painters, handymen, electricians, landscapers, administrative staff, or any other help, you can use the list as a starting point.

How to Find Quality Professionals
In each part of our series we provided details on how to find quality professionals. While there may be specific places to look for each type of contact, the local Yellow Pages or an internet search will provide an abundance of contacts in your area. The easiest way to narrow these names down is to ask for referrals from other investors or members of your team. Recommendations from fellow investors are more likely to turn up other contacts who own investment real estate themselves, and this creates a great foundation to establish a new working relationship. Referrals who are familiar with the rental business are more likely to share similar attitudes and are often more knowledgeable on topics specific to real estate investors.

Conclusion
While it may take some time to stack your Real Estate Investment Team with great professionals, having the right team behind you can make all the difference in your business. Having the right financial, property, legal, tax, insurance and operational advice can save you hundreds of dollars and hours by preventing problems before they arise. Work with competent professionals to ensure all of your bases are covered and your portfolio will grow faster while you sleep well at night.

Building Your Real Estate Investment Team Series:
Building Your Real Estate Investment Team – Part 1: Introduction
Building Your Real Estate Investment Team – Part 2: Selecting a Mortgage Broker
Building Your Real Estate Investment Team – Part 3: Selecting a Realtor
Building Your Real Estate Investment Team – Part 4: Selecting a Lawyer
Building Your Real Estate Investment Team – Part 5: Selecting a Home Inspector
Building Your Real Estate Investment Team – Part 6: Selecting an Insurance Broker
Building Your Real Estate Investment Team – Part 7: Selecting a Property Manager
Building Your Real Estate Investment Team – Part 8: Selecting an Accountant
Building Your Real Estate Investment Team – Part 9: Conclusion

This post was written for The Rentables Apartment Blog as the eigth part of a series entitled “Building Your Real Estate Investment Team.”

The following is an article from The Globe & Mail published Monday, May 24th, 2010. This article was written by Dakshana Bascaramurty who interviewed Schien Dong, one of the founders of The Rentables. The original article can be viewed here: Landlords, you can’t hide from the Internet.

Armed with an arsenal of websites detailing everything from area crime to health risks, home hunters can now easily find the truth behind dubious ads.

Today The Rentables was featured in an article in the Toronto Star. Also mentioned were co-founders Pavel Tchourliaev, Schien Dong and Andrew MacDonald as well as Toronto area real estate sales representative Elena Fort. To see a full size PDF version of this article, click the image below:

After working hard to develop The Rentables throughout 2009 and establish a foothold, the team has shifted its focus in 2010 to growing our user base. As more people are aware of the service we offer, we are confident our site will explode in popularity. Simply put, The Rentables offers a better online rental listing search experience for its tenant users, and a simpler more streamlined posting process for its landlords and property managers. The more users our site has, and the more postings our site has, the more useful the site becomes for all parties involved.

We are at a level where TheRentables.com is a great resource to advertise your unit for rent or search for a new rental unit as a tenant. Best of all, both tenants and landlords can use our service free of charge, so be sure to check it out next time you are in the housing rental market, and be sure to tell your friends!

This post was written for The Rentables Apartment Blog as the seventh part of a series entitled “Building Your Real Estate Investment Team.”