Back to List
Posted September 20, 2024 by Miranda Mena

How is the real estate market in Canada changing and what can we expect?

Interview with Jason McGuire, CEO of Real Property Management Service

Q: How have you seen the real estate market change over the years, particularly in Toronto?

Jason McGuire: The Toronto market has evolved significantly, especially over the last 20 years. However, if we focus on the last five years, the changes are even more dramatic. We've shifted from an era of “free money,” where borrowing costs were almost nonexistent, to a much different scenario today, with interest rates climbing to 7-8%. This has squeezed out a lot of unsophisticated investors who bought properties on speculation without considering the long-term financial requirements.

Q: What are the biggest shifts you’ve seen in property management since starting the company?  

Jason McGuire: One of the biggest shifts has been the professionalization of the industry. When I first started, property management was often seen as something handled by “mom-and-pop” operators, who were just picking up rent or mowing lawns. Today, it’s a much more sophisticated field. The services we offer now go far beyond maintenance and touch more on managing cash flow and educating clients about real estate wealth-building strategies. It's no longer just about managing big towers or commercial properties, but also handling investments in smaller residential properties.

Q: How do you think the market will evolve in the next five to ten years? Any trends property owners should be aware of?  

Jason McGuire: I foresee the property management industry becoming regulated in the near future. Right now, it's unregulated, meaning anyone can call themselves a property manager without licensing or formal education. I believe that with municipalities adding more rules and regulations, only those truly prepared for this shift will survive in the market. Property owners should be prepared for these changes and work with professionals who understand how to navigate the evolving regulatory landscape.

Q: How has technology changed the way property management is done today compared to when you started?  

Jason McGuire: When I started, technology in property management meant having a phone and a checklist. Today, it's much more advanced. Technology now drives two key areas—customer experience and process management. From automating basic inquiries to creating seamless customer service experiences, technology has transformed the way we manage properties. Tenants expect fast, efficient communication, and property managers who can offer that will have a competitive edge.

Q: What role do you see technology playing in the future of property management?

  

Jason McGuire: I think technology will evolve in two main areas: financial literacy and automation. Property owners will have access to better tools that help them understand their assets—things like predictive analytics that can forecast the lifespan of a furnace or the need for future repairs. The second area is automation of routine tasks, like responding to simple tenant queries. However, even with AI, the human element—building relationships with tenants—will always remain crucial.

Q: What are the most common mistakes you see property owners making when managing their properties?  

Jason McGuire: A lot of new real estate investors don’t fully understand what they’re getting into. They think they can make easy money without considering the full scope of responsibilities involved in property ownership. Lack of preparation and knowledge often leads to difficulties in managing the property effectively. I always stress the importance of education—understanding how real estate works, both in terms of risks and rewards.

Q: Can you share some tips for property owners on how to maximize the value of their investment?  

Jason McGuire: There are many ways to add value to a property, but I believe the most important is to build a strong relationship with your tenants. Whether you're a small landlord or a large company, the experience you provide to your tenants will have a direct impact on the success of your investment. People today expect a certain level of communication—some prefer texting, others email. Meeting their expectations with good service is crucial.

Q: How important is it for property owners to stay updated with local tenancy laws and regulations?  

Jason McGuire: If you have a good property manager, they should be keeping you informed of the relevant laws and any changes. However, if you’re managing your property on your own, I recommend staying up-to-date by doing quarterly reviews of the laws, tenant behaviors, and best practices. Staying compliant is key to avoiding any legal issues.

Q: What advice would you give to someone looking to invest in real estate today?

 

Jason McGuire: Before making any investment, you need to define your goals and what success looks like for you. Are you planning for a short-term gain, or is this a long-term investment? Once you have that clarity, you can reverse-engineer your decisions and evaluate potential properties based on whether they align with your end goals.

Q: What should property owners look for when choosing a property management company?

  

Jason McGuire: Look for expertise and a company that’s actively shaping the industry. You want a company that understands your needs and has a clear voice in industry trends. Don’t be afraid to ask questions about their experience, processes, and how they plan to help you achieve your investment goals.

Q: What’s your top tip for property owners who want to ensure their properties are always occupied with quality tenants?

  

Jason McGuire: Focus on the tenant experience. How you communicate and interact with your tenants is critical. If you provide a positive experience, it will not only help you retain tenants but also attract quality ones. Even if you have great systems in place, the human touch makes a huge difference in keeping your property occupied.