Oddly enough, I was having this conversation with a client from Edmonton yesterday … is it necessary for a Canadian purchasing rental property here in Arizona to hire a property manager?
Logistics told me you’d want to have a property manager, unless you enjoy flying up and back to the States repeatedly. Then I saw this note from Larry Yatkowsky, from a Q-and-A forum in the local paper in Vancouver:
QUESTION: We just purchased property in xxxx (a 4-plex apartment). We plan on renting out 3 of the units and keeping one. The border-crossing inspector told me that I have to hire a rental agency in order to rent out the apartments, and I also have to have a property manager full time. Do you know if this true? We will be at our apartment approx 2 times a month. So we do not need a property manager.
DAVID INGRAM replies: You need a property manager if you do not want the strong possibility of going to jail for a few days before being deported and then not allowed back in the
Crossing the border when you have an ad running to show the premises and saying you are going down to spend the weekend in your holiday home (i.e. lying to the HOMELAND (sic) Security official could result in seizure of your vehicle and a ban for up to 10 years under their ER (Expedited Removal) provess. In other words, is is more serious to lie to the guard at the border than it is to do the work.
You ‘could’ actually show the property for rent, but you can NOT write out a contract for rent or collect a single rent cheque or cash for rent in the United States. There is nothing new about this. …
If you are physically there you can NOT cut the grass, shovel the sidewal, paint or decorate or repair of fix or remodel or improve or take out the garbage for any part of the rental property. You can paint and clean your own unit if it is NEVER rented or intended to be rented. You cannot paint and clean up getting the property ready for rent.
Luckily, shoveling sidewalks is not a major issue here in Arizona. But the rest deals with two separate issues. One – don’t lie to the border agent. Seems to make sense. Two – get a property manager to handle the work on the property since anything you do can and will be considered working here in the states without papers.[tags]Phoenix real estate, Canadian investors Arizona real estate[/tags]