Raise the Hammer

As a rental property investor who both owns/has owned and lives in downtown Hamilton, I have a few points to make.

Chopping up and old Victorian into multiple units is the only way for investor to make cash in the core; a single family home in downtown Hamilton will never bring in enough rent to cover costs. Therefore the owner is losing money. The profit on most multi-unit dwellings can be pretty good, other things notwithstanding....

And now to those other things...
The people who rent single floor units most of these old places are overwhelmingly on social assistance. I know this, because I have had many tenants in the area who are this way. And most who apply are on social assistance. All I know is the net effect of this, not the cause.... just the net. And the net effect is people who are on social assistance tend to do more damage to a rental unit than those who work regularly. I have many places and let me tell you from experience; I have spent far more in repairs for units rented out to people on social assistance as opposed to those who work. What most seem to forget is what makes up an "expense". All the garbage that is left in the unit after they leave has to be removed, and that costs money. Same with cleaning the place. Not free either. In my experience, renters who work leave less garbage/belongings/mess than those who are on assistance. This has been my experience in the core over the last 5 years. Perhaps other landlords in downtown Hamilton have differing experiences? So yes, you make more revenue on multi-unit dwellings, but you also have more expenses as well. NO NET CHANGE.

Now, those who work regularly, often don't need to rent a single floor unit in a house; they can afford a better place/house/ownership. See where this is going? So the pool of renters is mostly made up of people on assistance.

So, based on my previous experience, most of the people who rent in these areas are going to cost you more money than you bargained for. That is the net effect.

It doesn't help that Hamilton's property tax is beyond ridiculous (I wonder why it's so high? Anyone?).

Any other investment property owners care to share their thoughts/experiences?