Establishing clear expectations from the very beginning is a critical factor in managing tenant relationships. Taking the time to outline responsibilities, communicate rules, and foster open communication sets a foundation for smoother, more cooperative interactions over time. When these expectations are unclear or inconsistently communicated, misunderstandings and conflicts are more likely to arise, leading to increased frustration and potential turnover. Starting off on the right foot with tenants not only prevents many common issues but also enhances trust and satisfaction, leading to longer, more successful tenancies.

Why Starting Off a Tenant Relationship Right Matters

Positive starts are always important. The early days of a tenancy are crucial for setting the tone of the entire relationship. Clear communication from day one helps tenants feel confident in their new home, minimizes confusion, and establishes mutual respect. 

When tenants know what to expect and feel their landlord or property manager is approachable, they are more likely to voice concerns early, follow the rules, and maintain the property as agreed. Additionally, a positive beginning leads to better first impressions, which often translates to tenants staying longer, paying rent on time, and adhering to lease agreements. In contrast, if tenants start off unsure of their responsibilities or feel neglected, they may be less cooperative, leading to disputes, costly maintenance issues, or early lease terminations.

Establishing Ground Rules During Lease Signing

One of the best opportunities to set expectations is during the lease-signing process. It’s essential that landlords or property managers walk tenants through every section of the lease, ensuring they fully understand the terms. Key areas to highlight include rent payment deadlines, maintenance reporting procedures, and rules about noise, guests, or common area usage. When tenants are aware of their responsibilities from the start, they are more likely to comply, significantly reducing the chances of conflict later.

Preventing Miscommunication and Conflict

Missteps in expectation-setting often lead to conflicts that could have been easily avoided. 

For instance, a tenant might assume that landscaping services are included, only to be hit with unexpected fees at the end of the month for not maintaining the property outside. Similarly, if an owner or property manager fails to clarify maintenance reporting procedures, minor issues may go unreported (or not be received), so remain unresolved, eventually escalating into larger, costlier repairs. Another common example is subletting. A tenant may mistakenly believe they can sublet their apartment, and not obtain the proper permission if subletting was not clearly and specifically addressed.

Setting clear expectations from the outset is critical to avoiding these issues. Regular check-ins with tenants, especially in the first few months, can reinforce guidelines and clarify any uncertainties before they become problems. These check-ins also create opportunities for tenants to ask questions as they arise, as they may not think of everything immediately after moving in, and new questions often come up over time as the tenants settle in.

Setting Up for Success

Have a system in place to ensure all new tenants consistently get the right information and have it on hand when they need it. This will simplify the process for you, and make it easier for your tenants.

An effective way to set expectations is by providing tenants with a welcome packet outlining essential information, such as garbage pickup schedules, parking rules, and emergency contact numbers. They can easily review it at their convenience, and recheck the information whenever they need to. Another best practice is sending a friendly follow-up email after a tenant moves in, reiterating key lease terms and providing a direct point of contact for questions. These proactive measures not only clarify expectations but also demonstrate the landlord’s commitment to a smooth, hassle-free experience for the tenant.

Consistency

Even with the best of starts, it’s important to be aware that setting expectations is not a one-time event but an ongoing process. Landlords and property managers must ensure that their actions are consistent with the agreements made during lease signing. If the lease states that maintenance requests will be addressed within 48 hours, it’s crucial to meet that commitment. Following through on these promises builds trust and reinforces the tenant’s respect for their landlord. Tenants are then more likely to uphold their responsibilities in kind. Both parties know what they can expect, and know how to work together for a more successful arrangement.

In the high-stakes world of real estate, a single misstep can transform a promising career into a legal nightmare.

Although I’m an active Realtor, back in the 1970s, as a broker, I was called upon to testify as an expert witness. The case involved a broker who was accused of not being vigilant during an open house when jewelry was stolen by someone from the public. That single case started a second career for me as an expert witness. I’ve testified in about 600 trials and written thousands of expert reports, seeing firsthand how quickly professional dreams can unravel.

The real estate industry is experiencing a critical moment. An influx of poorly trained, part-time agents who fail to understand fundamental rules and regulations is creating a perfect storm of potential litigation. The consequences are far more than monetary—they can devastate an agent’s reputation and professional future and negatively impact their brokerage.

The landscape of professional liability

Agents face numerous potential legal challenges, including professional negligence claims, fraud allegations, breaches of fiduciary duty, misrepresentations of professional expertise, financial damages from incorrect advice to buyers and sellers, vicariously dragging their brokerage into litigation and the besmirching of their personal and their brokerage’s reputations (which can be dramatic in smaller communities).

One of the most insidious risks lies not in outright lies but in strategic omissions. Agents who fail to disclose critical property details—whether they’re zoning restrictions, environmental hazards or structural defects—are setting themselves up for potential lawsuits.

Common pitfalls

There are many recurring issues that invite legal scrutiny and lawsuits, including:

Agents stating that zoning or other uses are legal when they’re not. It’s up to you to verify the zoning online or in person at the local zoning office.

Omitting negative factors

Sloppy practice inclusive of badly written offers

Accepting details from older, previous listings as fact, like incorrect lot sizes or room and gross area dimensions. Original builder representations of square footage can be exaggerated. Buy a decent laser measurement tool and, if possible when listing, get electronic floor plans and the provincial assessment gross floor area.

Pushing buyers to make a clean offer when they won’t qualify for an adequate mortgage

Selling land for a home or other construction only for the buyer to find out that it’s in a flood plain or on a restricted site

Selling contaminated land without disclosure, promising the buyer a specific (and usually inflated) price for their home when the market value wasn’t there, so they can’t close

Lack of understanding of the rules and regulations that guide the real estate industry

Your best defense: Documentation

The difference between surviving a lawsuit and being crushed by one often comes down to one critical factor: meticulous record keeping.

Agents must maintain comprehensive documentation of every transaction, including all offers, counteroffers and forms, detailed transaction diaries, email correspondence, text messages, handwritten notes and verbal communication summaries.

Be sure to verify all facts including former MLS listings and verbal representations by your sellers or buyers.

Putting this all together can be challenging and depending on the case can eat up two weeks of an agent’s time. Text message downloading can be a chore. As well, the brokerage has to produce a similar list. Preparation is your shield.

Here’s some practical advice you can implement now:

• Maintain a detailed transaction diary
• Document every conversation and action
• Verify all property and market information
• Be transparent about potential limitations
• Follow legal counsel’s guidance precisely
• Learn the rules, and study your provincial and board guidelines

The emotional and professional toll

Being sued is more than a legal battle—it’s an emotionally draining experience that can paralyze your business. If you end up in a legal case, remember, the lawyers assigned to it are veterans and they will guide and advise you. Follow their direction at all times.

Some cases settle not because the agent did something wrong but because the lawyer felt that they would make a poor witness. Some people simply can’t handle the cross-examination of opposing counsel—I’ve observed agents breaking down and quivering on the stand during that process.

The real estate profession demands more than sales skills—it requires unwavering professionalism, attention to detail and a commitment to ethical practice. Keep these tips in mind to protect your reputation and your business.

Purchasing both sides of a duplex can be an excellent strategy for Canadians looking to enter the real estate market while building long-term wealth. This approach offers unique opportunities, including generating rental income, taking advantage of favourable financing terms, and mitigating risk. However, it requires careful planning, financial preparation, and an understanding of local markets and regulations. 

Benefits of Buying Both Sides of a Duplex

Owning both units in a duplex provides a unique level of control and flexibility that is difficult to achieve in other real estate setups. This can simplify property management and other aspects of property investment, especially for first-time landlords.

Entry-Level Investment Opportunity

Buying both sides of a duplex combines homeownership with the potential for earning passive income and property appreciation of both units. This can be an accessible way to build equity and establish a real estate portfolio.

Autonomy 

Unlike in situations where one side of the duplex belongs to a separate owner, you are not at the mercy of a third-party neighbour’s decisions or wishes. 

Owning both sides of a duplex gives you control over major improvements and repairs, like roofing, siding, or structural updates, that would typically require collaboration with the owner of the second unit. This collaboration can often create challenges. Deciding on shared expenses, such as roof repairs, exterior painting, or driveway resurfacing, often requires negotiation, compromises, and, at times, disputes. However, owning both sides eliminates this complexity.

This eliminates potential delays or conflicts over timing, budgets, or the scope of work and avoids the risk of being pressured into updates you may not prioritize. 

While landlords must meet minimum legal standards for rental units, owning both sides still offers greater autonomy in managing your property. This makes duplex ownership a unique option—allowing you to enjoy affordable housing without some of the complications common when two or more owners share a wall.

Choosing Your Neighbours

When you own both sides of the duplex, you have the distinct advantage of greater control over who lives next door. If you’re living in one unit and renting out the other, you get to screen potential tenants to find reliable ones that will not damage the property and detract from your value.

Simplified Landlord Responsibilities

For first-time landlords, owning and living in one unit of the duplex can make the landlord role more manageable. When you’re on-site, daily tasks like maintaining the yard, clearing snow, or inspecting the property become more convenient. For example, mowing the lawn for both units at the same time reduces the time and effort compared to managing a property in a separate location.

Being physically present also makes it easier to monitor the other property, without being invasive, and allows you to respond more quickly to any issues. 

Financing and Tax Benefits

Buying both sides of a duplex can offer potential financial benefits, especially if you live in one unit. Owner-occupied properties often qualify for lower down payments and favourable mortgage terms, allowing lower down payments than non-owner-occupied properties. Rental income from the second unit is taxable but allows for deductions like maintenance costs, utilities, and loan interest, which can help offset expenses. 

Challenges and Considerations

As with any investment, there are risks. Purchasing the second unit as a rental property exposes you to risks, including market volatility, vacancies, tenant damages, and others. There are also several factors to consider, so you are well prepared.

Financial Readiness

While duplexes can offer financial relief, there remains the higher initial cost of buying both units, instead of just the one required for living.

Property Management

Managing rental units adds responsibilities. Landlords must maintain the property, handle tenant issues, and ensure regulatory compliance under provincial tenancy laws. 

Zoning and Municipal Regulations

Certain municipalities may impose restrictions on duplexes, such as occupancy limits, additional parking requirements, or regulations about short-term rentals like Airbnb. Buyers must ensure the property complies with local bylaws.

Local Market Conditions

Location is critical when purchasing a duplex. In urban centres such as Toronto, Vancouver, or Montreal, demand for rental housing is strong, but purchase prices are higher. Smaller cities like Kingston or Guelph offer lower entry costs, as well as consistent rental demand, making them appealing to first-time investors.

Mortgage Pre-Approval and Budgeting

Determine how much mortgage you qualify for and the associated costs. Canadian lenders often consider potential rental income when calculating mortgage eligibility, but each institution has different criteria.

Tenant Screening and Agreements

While being next door may encourage tenants to be responsible and careful with the property, you still need to carefully vet potential tenants. You want to find ones that are likely to be reliable in paying rent and not causing unnecessary damages and wear and tear on your property. Use written leases that clarify responsibilities up front, and which adhere to provincial landlord-tenant regulations to avoid legal issues.

Property Condition and Inspection

Older and poorly maintained duplexes are likely to create higher maintenance costs for you. Investing in a thorough home inspection can identify potential structural or mechanical issues, helping to avoid expensive surprises.

A Unique Path to Homeownership and Landlord Success

By owning both sides of a duplex, you not only gain full control over your property and immediate neighbours but also make the transition into being a landlord significantly easier. On-site living allows for hands-on management, efficient upkeep, and smoother operations while reducing the uncertainties often associated with working with independent neighbours or tenants. This approach is particularly well-suited for first-time buyers looking to balance homeownership with the financial benefits of real estate investment.

The City of Toronto has made progress in its housing efforts with its Purpose-Built Rental Housing Incentives stream, a program aimed at expanding the city’s rental housing supply. This initiative forms part of the city’s larger commitment to enable the construction of 20,000 rental homes by the end of 2026, addressing critical housing shortages.

The Purpose-Built Rental Housing Incentives stream is a component of Toronto’s Rental Housing Supply Program, which supports the development of various new rental homes, including rent-geared-to-income, affordable rental, rent-controlled, and purpose-built rental homes. This stream offers financial incentives to developers to encourage the construction of purpose-built rental units, thereby increasing the city’s rental housing supply.

Program Goals and Approved Projects

The first phase of the program has resulted in the approval of 7,156 net new rental homes across 17 projects in 12 wards. These include 6,109 net new purpose-built rental units and 1,047 net new affordable rentals. The city has set a requirement that at least 20% of all units must meet its income-based definition of affordability, ensuring lower rents for qualifying tenants. These affordability commitments are guaranteed for at least 40 years, with the potential to extend up to 99 years.

Financial Incentives for Developers

Developers participating in the program are offered a range of financial incentives to make their projects more viable. The most notable benefit for purpose-built rental homes is an indefinite deferral of development charges on the municipal portion. Projects including affordable rental units are further incentivized with exemptions from development charges, community benefit charges, parkland dedication fees, and property taxes during the affordability period.

Additionally, eligible projects may qualify for up to $260,000 in capital funding per affordable or rent-geared-to-income unit. A new Multi-Residential Property Tax Subclass, expected to be confirmed in the 2025 budget, will also reduce municipal property tax rates for new multi-residential buildings by 15 percent.

Eligibility and Prioritization

Both private and non-profit housing organizations are eligible to apply for the program. However, the city has prioritized projects based on specific criteria to ensure swift progress and alignment with its goals. Priority was given to developments that were financially ready, had secured approvals, or demonstrated an ability to begin construction in the near term. Projects led by organizations with strong financing histories, including those designated as frequent builders by the Canada Mortgage and Housing Corporation (CMHC), were also favoured.

All approved developments must commit to maintaining their purpose-built rental and affordable housing status over the long term. This requirement ensures that these homes remain available as rentals, contributing to the stability of the city’s housing supply.

Sector Response and Future Potential

The response to the first phase of the program has been overwhelmingly positive, with 75 applications submitted representing over 32,600 proposed rental units, including 7,400 affordable homes. Although only 17 projects were approved initially, the city is optimistic about advancing additional applications in the program’s second phase.

The second phase of the program could unlock up to 24,450 additional rental units if provincial funding through the Build More Homes Rebate becomes available. This rebate would offset development charges and a significant portion of property taxes for eligible projects, making them more financially feasible for developers.

The Purpose-Built Rental Housing Incentives stream presents a new opportunity for investors and developers to participate in Toronto’s growing rental market. The combination of deferred development charges, property tax reductions, and capital funding aims to lower the financial barriers to building new rental housing. 

In British Columbia, we wrapped up October with one of the oddest provincial elections in recent memory, only to immediately turn our gaze cross-border to an even stranger spectacle.

Here in the land of socialized medicine and progressive poutineries, the rhetoric of United States President-elect Donald Trump can often seem like nationalist propaganda, a badly written sitcom or just straight-up unhinged boasting. But love him or hate him, Trump is soon to be the 47th president of the U.S.

Blanket tariff impacts & a tough housing landscape

The national media narrative since the U.S. election has been dominated by Trumpian threats of a blanket 25 per cent tariff on all goods from Canada and Mexico. This spells immediate trouble for B.C. forestry products, Ontario-made cars and longstanding commodities of concern such as aluminum and supply-managed dairy. But those products are in for a rough ride regardless, with renewed negotiations on the horizon for the North American Free Trade Agreement (NAFTA) or, as it’s referred to on this side of the border, the Canada-United States-Mexico Agreement (CUSMA).

On the housing front, we share supply shortages, upwardly creeping home prices and overall challenging market conditions with much of the continental U.S. Meanwhile, aggressive housing policies paired with economic uncertainty have stalled the number of new builds in both regions, which does little to relieve market conditions.

Canadian challenges: Already great without tariff threats

There are, however, significant differences in our respective national per-capita GDP stats and household incomes. Canada has fallen significantly behind the U.S. on both fronts over the past decade.

Not only are we producing less on a per-person basis, but we’re also now earning less than U.S. averages. In the notably expensive housing market of San Francisco, for example, the median salary is $104,400 USD—significantly higher than the Vancouver and Toronto averages of $64,250 CAD and $62,050 CAD, respectively.

These realities combine to make life particularly challenging in Canada’s largest metropolitan regions as the regional populations grapple with the super-high cost of living expenses in addition to housing. 

In short, our domestic housing landscape is already messy, and that’s without any Trump-imposed tariff threats. Alberta has wasted no time in loudly pushing against federal energy caps that don’t align with the Trumpian “open for business” energy-sector agenda. Our beleaguered Prime Minister’s late-November Mar-a-Lago dinner meeting with Trump has resulted in our federal government scrambling to further secure our borders, even as anti-Liberals across the country raise their hands in support of becoming a 51st state. 

Further fallout to our GDP likely to come

With Canada already navigating a growth-challenged landscape, the already uncertain economic recovery in 2025 is further challenged by Trump’s trade tactics. As trade negotiations related to NAFTA/CUSMA get underway, the U.S. tactics of intimidation, and outright demands for Canada and Mexico to assume a subservient position within the structured agreement, are likely to cause further fallout to our national GDP.

Amid this uncertainty, our dollar is slumping against U.S. currency (as are most other Western currencies), and the Bank of Canada continues to implement rate cuts in an effort to spur economic growth. 

Trade war will hurt the housing market and building conditions

The larger challenge amid Trump-led tariff sabre-rattling and a potential global trade war will be the cost of building supplies and imports. It’s important to note that Canada is the largest trading partner of the U.S., and a trade war, aside from political puffery and bluster, is beneficial to neither economy. But should reciprocal tariffs be put into place for any prolonged timeline, the cost of goods on both sides of the border would escalate.

This would further challenge homebuilder profitability, and these costs would inevitably be passed on to the buyer, which makes for a complicated end result of softening market conditions paired with challenged building conditions. Ultimately, this is likely to further stagnate new builds. 

Optimistically, Canada could negotiate past the threats of the Trump administration. NAFTA was conceived as a three-way trade union to be of reciprocal benefit to the participant countries. Trump, however, is fond of positioning Mexico and Canada as taking unfair advantage of the U.S. economy.

This will be a tricky hill to climb for federal negotiators. There’s what the statistics and data demonstrate, and then there’s podium bluster. Hopefully, time, patience and diplomacy can once more find a workable solution to preserve the successful NAFTA alliance. 

Please note that it’s BCREA policy to not respond to comments on any of its online articles.