The Rental Association is a program that helps owners to achieve a higher and more consistent standard of renters. This in turn helps you maintain the value of the property and maximize the cash flows. This program will protect against delinquencies in rent vacancies at your property. With the Rental Association, you will combine all of the revenues received from Varsity managed units for the purpose of distributing the revenues on a Pro Rata Share basis to each of the the owners at the community.
Varsity Communities has been offering a hands-off property management experience in the Durham Region over the last 7 years. For the duration of your leaseback program, we have taken care of leasing, collection of rent, cleaning services, maintenance services and much more. This is a great option for any owner that lives out of the area or is looking to be more time-efficient with their properties. We want to continue to provide you with a time efficient and hands off property management experience. Below are some of the services we have been providing for your unit.
Our Rental Association Program allows for you to receive a more consistent monthly revenue from your unit. This is achieved by collecting rent from all enrolled units, deducting management fees, vacancy, and delinquency, then distributing the remaining revenue on a predetermined ratio to each enrolled owner.
You will need to make a choice between managing the unit independently, or enrolling in the Oshawa Rental Association Program with Varsity Communities. If you do plan to manage the unit independently, you will need to manage all the services Varsity previously provided. These services include, leasing your unit, coordinating repairs, lock out calls, monthly cleaning and many more.
The rental income is not guaranteed. The rental income will fluctuate depending on the amount of income received from the community on a monthly basis. The Oshawa Rental Association will ensure the most consistent revenue and reduce the risk from vacancies. Pooling revenue together and sharing the delinquency risk creates a more stable monthly revenue for enrolled owners. If you are not enrolled, you are at risk of receiving zero rent from your unit even if you have a signed tenant.
The fee to enroll in the rental association is 16% of monthly revenue. This fee includes our full property management that you have been receiving for the last two years.
The duration for the Rental Association Contract is three years.
There is a clause in the Oshawa Rental Association that enables you to transfer the contract to the new owner. You will need to sell the unit as an investment property if the owner is assuming the contract.