I won my court hearing thanks to the advice of a friend. My friend told me to bring a transaction summary with me on the day of my hearing. Preparing this document provided me with a boost of confidence that helped me to keep my composure during the hearing.
I know that I would not have been able to achieve my level of success as a real estate investor if it were not for great people like Jeff Varcoe. Jeff is a rising star in real estate investing circles in Ontario, Canada.
Jeff is a successful real estate investor, Rock Star Inner Circle Member, property manager and owner of Cornerstone Properties
As a real estate investor, sometimes all it takes is a few words of wisdom from a trusted and fellow real estate investor to give you the inspiration to keep on plugging away.
This was the case for me, when Jeff gave me the advice to take a…Transaction Summary with me to my court hearing.
A transaction summary is a very simple document, and takes less than a few minutes to put together. However, it is an extremely important and powerful document. Here is why…
The Eviction Process can be Intimidating
No matter what anyone tells you, the first time that you are in court evicting a tenant, you will be nervous. Although I was very composed on the outside at my court hearing, I was nervous on the inside.
As I had mentioned in How to Evict a Tenant Part One, it pays off to be over prepared at your court hearing. Part of being over prepared involves having a Transaction Summary with you.
What is a Transaction Summary?
A Transaction Summary is a simple document that outlines:
- Money that is owed to you
- Money that the tenant has paid
Sounds pretty simple, right? Well it is. Here is an example of a mock transaction summary:
123 Cash Flow Crescent, Anytown, Anycity. M4X 1F5
(owed) January Rent ——————-> $1,000
(owed) February Rent ——————> $1,000
(owed) March Rent ———————-> $1,000
(owned) January Admin Fee ———-> $20
(owed) February Admin Fee ———–> $20
(owed) March Administration Fee —> $20
(owed) Filing Fee to the Board ——–> $170
(minus) Partial Rent Payment (Dec.) –> $100
—————————————————————-
Total Amount Owned ————————>$3,130
Why a Transaction Summary is so important
This document was the most important document I brought with me to my court hearing. It was the most important document because it provided me a with a quick snapshot of the total money that was owed to me by the tenant.
Depending upon where you live, and depending upon the Government Organization that overseas the eviction process, you will be faced with a tremendous amount of paperwork throughout the eviction process.
My friend and fellow real estate investor Ed Renkema of CFI Properties recently called the eviction process a ‘War on Paperwork’. He is absolutely correct. Especially in Ontario, there is a tremendous assortment of paperwork that you have to file with the local authority.
Due to the fact that the paperwork can be overwhelming, especially if it is your first time evicting a tenant, a Transaction Summary helps to minimize the chaos.
Not only did I find the transaction summary beneficial for me, he judge at my hearing also found it beneficial.
When my court hearing was being ‘heard’ by the judge, she had my file of paperwork in front of her. In total, there were probably 30 different sheets of paper, consisting of required forms as well as additional evidence that I had submitted at the hearing.
One of the few questions that she asked me was:
How much money are you owed?
As soon as she asked me this, I pointed out the Transaction Summary that I had included in my paperwork. She took a quick look at the document and could easily see for herself how much money I was owed.
If she did not have the transaction summary, I would have told her verbally how much money was owed to me, and then she would have had to sift through the mounds of paperwork in order to verify the figure that I just gave her.
Once I pointed out the transaction summary to her, she simply took a quick glance of it.
I know that I definitely saved her time sorting through my paperwork. Further, by providing this document, I clearly demonstrated to her that I was organized and prepared.
In my next installment of How to Evict a Tenant, I am going to share with you some war stories that a veteran real estate investor and landlord shared with me, as I waited in the court room for my hearing to begin.
If you are a new real estate investor, you cannot be afraid of the eviction process. These experiences make you stronger. You have to endure them so that you can reap the rewards of holding real estate for the long term.
Stay tuned for my next installment.
Best Regards,
Neil Uttamsingh
ps: follow my blog if you are a new real estate investor or if you are looking to buy your first rental property.
Hey Neil, congrats on documenting the entire process as an education for many as yet uninitiated landlords. This is also an opportunity to solidify your credibility as a blogger and investor.
The more I learn the more I realize that the eviction process is onerous but the system does make for a regulatory process whereby the ethical landlord can achieve success.
Brad Hamilton after being through it said to me: “if you have your documents prepared you cannot lose!”
BTW I just completed a draft of transaction summary on one I potentially have coming up 🙂
Ed R
[…] Important Factors You Should Consider When Evicting A Tenant Part 4 Posted by: rein | Category: Real Estate Investing […]
Hi Neil,
Glad I could be of assistance. I continuously find it’s all the small things (the details) that really start to make a big difference.
Not always right away… but over time they become exponential.
Thanks for sharing all those “small” things with us and new investors.
Hi Jeff,
Thanks for your comment. It is my pleasure. The ‘small things’ really do make a difference.
The Transaction Summary that you told me about, has been the most valuable takeaway from me throughout this process.
I encourage all landlords going through this process to have a transaction summary. In fact, I encourage all of the tenants going through this process to compile their own transaction summary as well.
Best Regards,
Neil.
Hi Neil,
Evictions are just part of the game, and if you’ve been doing it long enough you’ll come across a few. They are not to be feared, this is why there is a vacancy and bad debt expense line in our pro forma estimates before we buy right?
The transaction summary sounds like a great tool to give you confidence by having all the financial details of the eviction right infront of you on one sheet. It also sounds like a great way to win over the judge by making their task that much easier.
Cheers,
Andrew
Hi Andrew,
Going through this experience, I have come to see how tremendously important the transaction summary is. Hands down, it is the most important document that you will reference during this process.
Neil.