Real Estate Investing Morning Show ( REI Investment in Canada )

Our Tenant Can't Pay Rent on Time. Here's What We're Doing.

It's October 1st. Rent is due.

A few days before rent day, one of Wayne and Gabby's tenants sent an email explaining that she wouldn't have enough money to pay her full October rent.

She's temporarily receiving Employment Insurance because of a health-related issue and is waiting for her first payment. She has approximately half of the rent available now and offered to send it immediately, with the remainder coming once her EI payment arrives.

So what should a landlord do?

Today's episode walks through the situation in real time, including Gabby's decision to work with the tenant, Wayne's concerns about the risks involved, and the systems landlords can use to prevent one late payment from becoming several months of unpaid rent.

Late Rent Doesn't Automatically Mean a Bad Tenant

This tenant has been late previously, which is an obvious warning sign.

But there's another side to the story.

In both situations, she communicated with Wayne and Gabby before the rent was due. She explained what was happening, took responsibility for the situation and was willing to accept the consequences associated with paying late.

That communication matters.

Wayne and Gabby explain that tenant history, communication and character can provide important context when deciding how to respond. The numbers may identify risk, but you're still dealing with people, and sometimes legitimate circumstances prevent otherwise responsible people from meeting an obligation exactly when expected.

That doesn't mean landlords should ignore the risk.

The Real Danger of Falling Behind

The biggest concern isn't necessarily the missing $800 today.

It's what happens next.

If someone normally lives relatively close to their monthly budget and falls $800 behind, where does that $800 eventually come from?

If the tenant uses their next paycheque to catch up on October, they have less money available to prepare for November. Then an unexpected car repair, illness or another expense can push them further behind.

One late payment can become a cycle.

That's why Gabby doesn't want to allow an open-ended arrangement where the tenant simply pays whenever she's able.

Gabby's Decision

Based on the tenant's previous communication and history, Gabby decided to accept the proposed arrangement.

But she also established an expectation.

The tenant needed to confirm that the delayed October payment wouldn't affect November's rent and that she had a plan to prevent this from becoming an ongoing cycle.

The tenant confirmed that she did.

That doesn't guarantee everything will work out. Gabby is consciously accepting additional risk based on the information and experience she has with this particular tenant.

If the promised money doesn't arrive within the timeframe discussed, however, Gabby doesn't intend to continue extending the arrangement indefinitely.

Put Everything in Writing

One of the most important lessons from today's episode is documentation.

Wayne and Gabby conduct their tenant communication through email, which means there's already a written record showing what was proposed, what was agreed to and what expectations were established.

If you're making arrangements verbally, Gabby recommends putting the agreement in writing.

If the situation eventually requires formal action, documentation becomes extremely important.

Compassion Doesn't Mean Ignoring the Business

Wayne makes an important distinction during the conversation.

This isn't about whether the tenant is a good person.

By all accounts, she's a lovely person with a good family, and Wayne and Gabby genuinely want the situation to work out.

But a landlord still has contractual obligations, operating expenses and, in some cases, investment partners whose capital must be protected.

The decision therefore has to consider the facts rather than being based entirely on emotion.

You can care about someone's circumstances while still protecting your business.

Why Wayne Doesn't Like Long Payment Plans

A viewer suggested spreading the missing $800 over several months.

Wayne explains why he generally doesn't favour that approach.

Today, the exposure is approximately $800.

If the arrangement continues and another full rent payment is missed, that exposure becomes substantially larger. Meanwhile, the landlord could also face vacancy, turnover, cleaning and other expenses if the tenancy eventually ends.

The longer the problem continues, the greater the potential loss.

Wayne would rather see a clear plan explaining exactly where the missing money is coming from and when it will be paid than continually extend the balance into future months.

There Is No "Three Strikes" Rule

Wayne and Gabby don't use a fixed three-strikes policy.

Their question is simpler:

Is there still a credible path to getting the tenancy back on track?

A tenant who communicates, provides a clear explanation and follows through may receive flexibility.

A tenant who repeatedly fails to follow through without a credible solution may require a much faster response.

The decision is based on whether Wayne and Gabby can see a realistic solution, not an arbitrary number of previous late payments.

Systems Create Confidence

Early in their investing career, a late rent payment could create significant anxiety.

Today, Gabby treats it as something that needs to be managed.

The difference is having a system.

Knowing what happens next, documenting communication, understanding the landlord-tenant process and establishing clear boundaries removes much of the uncertainty.

That allows landlords to respond logically instead of emotionally.

REI Masters Mentorship Special

The current REI Masters offer ends October 3, 2026.

Join before the deadline and receive 24 months of mentorship for the price of 12, including access to Wayne and Gabby, coaching, courses, resources, contracts, deal analysis and support.

New members also receive entry to the REI Masters Retreat in Edmonton on October 16–17, 2026.

www.reimasters.ca

Canadian Real Estate Investing Morning Show

Hosted by Wayne Hillier and Gabby Hillier.

Live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta.

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. www.finngo.com/rei

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Your Basement Flooded. The Water Is Gone. But What If It Still Smells?

Edmonton's unusually wet summer created serious problems for homeowners, landlords and tenants. Basements flooded, roofs leaked, restoration companies became overwhelmed, and months later some property owners are still trying to put their homes back together.

Today's episode starts with a detailed question from an Edmonton real estate investor whose basement suites flooded during the summer.

The restoration company removed drywall and flooring, dried the basement and reported that mold or mildew remediation wasn't required. But there's one problem: the tenant still detects an odor they believe smells like mold or mildew.

What do you do before rebuilding everything?

Wayne and Gabby's Experience With Flooded Properties

This wasn't a hypothetical situation for Wayne and Gabby.

Their portfolio experienced more than $100,000 in expenses related to this summer's rain and flooding. Some properties had relatively minor problems, while others required substantial work.

One property remains vacant while they work through multiple sources of water intrusion and prepare to complete the renovation.

Wayne explains why this year reinforced one of their biggest investing principles: cash flow isn't spending money.

They keep the cash flow generated by their portfolio in reserves so that unexpected events don't force them to borrow money, sell properties or scramble for capital.

The flood was expensive. But because they were prepared for an unexpected event, it didn't threaten the portfolio.

Can a Basement Still Smell After Remediation?

Wayne and Gabby have noticed lingering smells during some restoration projects.

Their experience, however, has been that those smells disappeared once the renovation was fully completed.

Wayne compares it to renovating extremely distressed properties. Cigarette smoke, animal odors and other smells can seem impossible to eliminate when you first enter a property. After proper cleaning, new flooring, paint, baseboards and other improvements, the finished property can smell completely different.

That doesn't mean a property owner should assume an odor is harmless.

The first priority is determining whether the remediation was completed correctly.

What Should You Verify With the Restoration Company?

Gabby suggests confirming exactly what the remediation company did.

Was damaged material removed?

Was disinfectant applied?

Was proper drying equipment used?

Were moisture levels checked before reconstruction was approved?

Those are important questions because the goal isn't simply to hide an odor. It's to make sure the property has actually been properly remediated before rebuilding it.

Should You Get a Second Opinion?

One of the most practical suggestions from today's conversation is to bring in another restoration professional if you aren't confident in the first company's assessment.

There are two different perspectives in this particular situation.

The tenant believes they smell something.

The restoration company says the property is ready.

Gabby's suggestion is to introduce an independent third perspective.

That could mean the landlord inspecting the property personally or asking another qualified restoration company to assess the work and provide a second opinion before the walls and flooring go back in.

Wayne and Gabby agree that cutting corners doesn't make sense. Tearing a finished basement apart again because something was missed would be far more disruptive and expensive.

Flooding Is a Landlord Responsibility

Wayne also discusses something they saw repeatedly in Edmonton this summer: tenants looking for new rentals because their existing landlords hadn't properly repaired flooded basements.

Removing standing water isn't the end of the job.

A landlord has a responsibility to properly address water damage and make sure the property is safe before putting everything back together.

Wayne emphasizes that the investor who submitted today's question appears to be taking that responsibility seriously. The fact that they're considering an independent environmental assessment demonstrates how seriously they're approaching the problem.

The Bigger Investing Lesson: Build Your Reserves

Flooding is also a reminder that owning rental property means dealing with expenses you can't predict.

Wayne and Gabby's philosophy is to avoid spending the cash flow produced by their properties, particularly during the early years of ownership. Instead, cash flow builds reserves.

A portfolio that looks fantastic on paper but doesn't have enough money available to handle a major repair is vulnerable.

That's one reason Wayne uses the 5% Rule™ when evaluating properties:

(Annual Cash Flow ÷ Down Payment) × 100

5–6% = sufficient 7–9% = strong 10%+ = excellent

Cash flow creates the cushion that helps an investor survive the things nobody included in the original spreadsheet.

Rapid-Fire: Edmonton's Rental Market

The episode finishes with several investor questions.

Wayne describes Edmonton's current rental market as highly competitive, with considerable rental supply giving tenants more choices.

His expectation is that landlords will need to compete harder for strong tenants and that some rents may soften.

At the same time, Wayne says he's currently achieving some of the strongest investment returns of his career.

His distinction is important: a difficult rental market doesn't necessarily mean a bad acquisition market.

Investors need to buy the right property and become much better at marketing and operating their rentals.

How Should Someone Learn Real Estate Investing?

Wayne's answer is education before acquisition.

Understand how to choose a market, analyze a property and operate the investment before committing your savings or someone else's capital.

The Canadian Real Estate Investing Morning Show provides free education and coaching every weekday morning at 7:00 AM Mountain Time.

How Do You Buy More Properties When You've Run Out of Money?

Wayne's rapid-fire answer: seller financing.

Seller financing, including Agreements for Sale, played a major role in Wayne and Gabby's early portfolio growth.

Rather than relying entirely on their own down payments or conventional financing, they learned how to structure transactions where the seller provided financing.

It's one of Wayne's favourite strategies for experienced investors who understand how to buy and operate rental properties but have exhausted their available capital.

REI Masters Mentorship Special

Join the REI Masters Mentorship Program by October 3, 2026 and receive 24 months of mentorship for the price of 12.

New members also receive entry to the REI Masters Retreat in Edmonton on October 16–17, 2026.

www.reimasters.ca

Canadian Real Estate Investing Morning Show

Hosted by Wayne Hillier and Gabby Hillier.

Live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta.

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. www.finngo.com/rei

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Canadian Property Taxes: What Real Estate Investors Are Missing

Property taxes might not be the most exciting part of real estate investing, but they can completely change the performance of a rental property.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby compare residential property taxes across 20 major Canadian cities and show just how dramatically the numbers can change from one market to another.

Using the same $500,000 assessed property value in every market allows for an apples-to-apples comparison. The difference between the lowest and highest cities in the comparison works out to thousands of dollars per year and hundreds of dollars every month.

For a real estate investor, that's cash flow.

How Property Taxes Actually Work

Property taxes aren't structured exactly the same way across Canada.

Depending on the province and municipality, your bill can include municipal taxes, provincial education taxes, regional authorities, transit, fire protection, waste collection, school taxes and other local levies.

The terminology and assessment systems can also differ between provinces.

The important lesson for investors is that looking at a property's purchase price isn't enough. You need to understand the actual assessed value, applicable tax rates and any additional charges specific to that municipality.

Why Assessed Value Matters

Property taxes are generally calculated using the municipality's assessed value of the property, which isn't necessarily the same as the purchase price or current market value.

That distinction becomes especially important when buying a recently renovated property, adding a legal secondary suite, building a garage or completing another improvement that could increase the assessed value.

If the municipality hasn't yet incorporated those improvements into the assessment, the existing tax bill may not accurately represent what you'll eventually pay.

Vancouver Has the Lowest Rate in the Comparison

One of the biggest surprises in today's episode is Vancouver.

Using the rates discussed on the show, Vancouver had the lowest combined percentage among the 20 cities compared.

On the standardized $500,000 assessed property used throughout the episode, the approximate annual property tax was $1,682, or about $140 per month.

Surrey, Kelowna and Victoria were also near the low end of the comparison.

Wayne discusses an important reason why percentage rates alone can be misleading. Markets with very high property values can use lower percentage rates while still generating substantial tax revenue because those percentages are being applied against much larger assessed values.

Edmonton vs. Calgary Property Taxes

The Edmonton-Calgary comparison was particularly interesting.

Using the same $500,000 assessed property:

Calgary: approximately $3,325/year

Edmonton: approximately $5,182/year

Difference: approximately $1,857/year

That's roughly $155 per month in additional expenses for the Edmonton example.

But Wayne stresses that this doesn't automatically make Calgary a better real estate investment.

Purchase price, achievable rent, insurance, utilities, cash flow, tenant profile and other operating expenses all have to be considered together.

A lower property-tax rate can't compensate for an investment that doesn't otherwise produce the returns you're looking for.

Windsor Had the Highest Rate in the Comparison

At the other end of the list was Windsor.

Using the figures discussed during the episode, a $500,000 assessed property produced an estimated annual property-tax bill of approximately $10,483, or about $873 per month.

Compare that with approximately $1,682 annually in Vancouver.

That's a difference of roughly $8,801 per year, or about $733 every month.

For a rental-property investor, an expense difference of that magnitude can completely change the economics of a deal.

Why You Can't Just Compare Mill Rates

This episode isn't intended to suggest that investors can simply take a city's headline tax percentage, multiply it by a purchase price and call it done.

Assessment systems aren't standardized across Canada.

Different jurisdictions can have separate school taxes, regional levies, parcel taxes, waste charges, borough-specific taxes and other fees. Properties can also fall into different classifications.

That's why investors need to research the actual property they're considering.

Wayne's 5-Step Property Tax Due-Diligence Process

When analyzing a new rental property or unfamiliar market:

1. Get the property's actual previous tax bill. Don't rely exclusively on an MLS listing or what the seller tells you.

2. Determine whether the current assessment reflects recent renovations, additions, secondary suites or new construction.

3. Look for separate charges including school taxes, regional levies, parcel taxes, waste fees, stormwater charges and local improvement charges.

4. Verify the property's tax classification and whether your planned use or renovations could change it.

5. Stress test the deal. Don't assume today's property-tax bill will remain unchanged for the next 10 or 20 years.

Property Taxes and the 5% Rule

This is another reason Wayne emphasizes cash flow.

A property that barely works using today's expenses can quickly become a bad investment when property taxes, insurance, maintenance or other costs increase.

The 5% Rule™ cash flow test is:

(Annual Cash Flow ÷ Down Payment) × 100

5–6% = sufficient 7–9% = strong 10%+ = excellent

Cash flow isn't simply money to spend. It's part of the financial buffer that allows an investor to absorb unexpected changes while continuing to hold the property for the long term.

Search "The 5% Rule by Wayne Hillier" on Amazon to learn more.

REI Masters Mentorship Special

Through October 3, 2026, anyone who joins the REI Masters Mentorship Program receives 24 months of mentorship for the price of 12.

New members will also be able to attend the upcoming REI Masters Retreat in Edmonton on October 16–17, 2026.

Learn more: www.reimasters.ca

Canadian Real Estate Investing Morning Show

Hosted by Wayne Hillier and Gabby Hillier.

Live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta.

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. www.finngo.com/rei

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Which Canadian Cities Are Most Exposed to U.S. Tariffs?

Tariffs and the ongoing Canada-U.S. trade dispute are creating another layer of uncertainty for Canadian businesses, workers, landlords and real estate investors. But the impact is not going to be equal across the country.

In today's episode, Wayne and Gabby look at which Canadian cities have the greatest exposure to U.S. tariffs, why certain local economies are more vulnerable than others, and what investors should be thinking about when choosing markets and building portfolios that can survive economic disruptions.

The Rental Market Is Getting More Competitive

Before getting into tariffs, Wayne and Gabby share an update from their own rental portfolio.

A new tenant moved in early over the weekend, and Gabby explains why they were particularly happy with the tenant profile, including strong credit, good communication, insurance in place, and rent and security deposit paid ahead of time.

They also discuss the changing Edmonton rental market. Tenants currently have more options in certain property categories, which means landlords may have to work harder to attract strong applicants.

Wayne and Gabby currently have multiple renovation crews moving between properties, but these aren't simply renovations for the sake of improving a property. They're strategic improvements designed to make their rentals more competitive, reduce vacancy and help achieve stronger rents.

When supply increases, being "good enough" may not be enough. Presentation, pricing, tenant experience and property condition become increasingly important.

What Happens When a Tenant Moves In Before the Lease Starts?

A live viewer asked an important landlord question: If you allow a tenant to move in before the official lease date, does that create additional liability?

Gabby walks through three things landlords should consider:

• Update the lease commencement date and have the appropriate parties acknowledge the change.

• Make sure the tenant's insurance begins on the actual possession date.

• Collect the required rent and security deposit before possession is provided.

Landlords can also decide whether to charge prorated rent for the additional days. In this particular situation, Wayne and Gabby chose not to charge extra because the property was already vacant and the early possession was only a matter of days.

Real Estate Investors Need to Build for the Storm

One of the biggest themes of today's episode is that economic disruptions are inevitable.

Oil crashes, pandemics, rapidly rising interest rates, flooding, trade disputes and other unexpected events continually test real estate investors.

Wayne's argument is that investors shouldn't build portfolios that only work when everything goes right. They should buy properties with enough cash flow and financial cushion to withstand periods when things go wrong.

He discusses an example of a mentorship student's property generating approximately $670 per month in cash flow. That cushion gives the investor significantly more room to absorb higher expenses, lower rents or other unexpected changes than a property operating close to break-even.

Cash flow isn't spending money. It's a risk mitigator.

The 5% Rule and Surviving Economic Disruptions

Wayne returns to the cash flow framework from his book, The 5% Rule™: A Real Estate Cash Flow Test for Canadian Investors.

The formula is:

(Annual Cash Flow ÷ Down Payment) × 100

5–6% = sufficient 7–9% = strong 10%+ = excellent

Wayne's position is that investors should be buying properties capable of producing meaningful cash flow without depending on appreciation. The greater the cushion, the better positioned the investor is to deal with vacancies, declining rents, higher financing costs and economic shocks.

Search "The 5% Rule by Wayne Hillier" on Amazon to learn more.

Which Canadian Cities Are Most Exposed to U.S. Tariffs?

The episode then examines Canadian cities whose economies have particularly strong exposure to trade with the United States.

The industries highlighted include:

• Energy in Alberta and New Brunswick • Automotive and manufacturing in Southern Ontario • Steel in Hamilton • Aluminum, forestry and manufacturing in Quebec

Saint John, New Brunswick ranked at the top of the tariff exposure index discussed during the show, followed by Calgary.

Calgary's position is particularly interesting for Alberta investors. The city's economy has significant exposure to the corporate and export side of Canada's energy industry, and an enormous percentage of its international merchandise exports are destined for the United States.

Southern Ontario also features prominently because of its deeply integrated manufacturing and automotive supply chains. Windsor, Kitchener-Cambridge-Waterloo, Brantford and Guelph were among the markets discussed.

Hamilton's steel industry creates another form of exposure, while several Quebec communities face risks connected to aluminum, forestry and manufacturing.

Lethbridge also appeared among the top 10, although Wayne emphasizes that simply appearing on the list doesn't mean every city faces an equivalent level of exposure. There is a substantial difference between the exposure measurements at the top and bottom of the list.

Edmonton vs. Calgary

For Wayne, one of the most interesting comparisons is Edmonton versus Calgary.

Although both cities are part of an energy-producing province, their economic structures are different.

Calgary's economy has greater direct exposure to the corporate and export side of energy. Edmonton still has significant connections to energy, manufacturing and industrial activity, but its economy also includes substantial government, healthcare, education, construction and other sectors.

In the ranking discussed during the episode, Edmonton was considerably further down the list at 24th.

Wayne explains why economic diversification is one of the fundamentals he considers when choosing a real estate market. No market is immune to economic shocks, but he wants to invest in large markets with strong economies and enough diversification to absorb them.

That resilience is one of the reasons Wayne continues to favour Edmonton real estate investing.

Don't Wait for Perfect Conditions

The takeaway isn't that investors should stop buying real estate because tariffs, interest rates or economic uncertainty exist.

There is always another challenge coming.

Wayne and Gabby's strategy is to build portfolios that can survive those challenges through strong cash flow, adequate reserves, appropriate tenant profiles, careful market selection and disciplined buying.

Waiting for perfect conditions isn't the strategy.

Preparing for imperfect conditions is.

REI Masters Mentorship Special

For a limited time, anyone who joins the REI Masters Mentorship Program before October 3, 2026 receives 24 months of mentorship for the price of 12.

You'll also receive entry to the upcoming REI Masters Retreat in Edmonton on October 17–18.

Learn more: www.reimasters.ca

Canadian Real Estate Investing Morning Show

Hosted by Wayne Hillier and Gabby Hillier.

Broadcasting live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta.

Bring your real estate investing questions and join the conversation live.

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. www.finngo.com/rei

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Bad Rental Applicants? Where Landlords Should Advertise + Condo Bylaws & Getting Started

Where should landlords actually advertise rental properties?

What should real estate investors look for inside condominium bylaws?

And what do you do when you know you want to invest in real estate, but you just can't seem to take that first step?

Today's Canadian Real Estate Investing Morning Show is a listener Q&A covering three very different problems that ultimately come back to the same thing:

Good real estate investing requires good systems, good information and the confidence to actually take action.

Where Should You Advertise a Rental Property?

A listener wrote in after getting poor-quality rental applicants through Facebook Marketplace and wanted to know whether there is a better place to advertise.

Wayne's answer:

Know your audience.

There is no single rental platform that is automatically best in every Canadian city.

Facebook Marketplace may dominate one market.

RentFaster may work better somewhere else.

Another city may have a completely different platform tenants use.

The first question should be:

Where do tenants in MY market actually look for rentals?

One simple exercise is to pretend you are the tenant.

Google rental properties in your city.

See which websites appear first.

Look at where competing rentals are being advertised.

That gives you a much better idea of where your potential tenants are actually searching.

Bad Applicants May Not Be a Facebook Problem

Gabby makes an important distinction.

If Facebook Marketplace is where most tenants in your city search for rentals, getting bad applications does not necessarily mean Facebook is the problem.

You want exposure.

You want inquiries.

You want enough applicants that you have choices.

The real issue may be what happens after the inquiry comes in.

Why Good Tenants Get Taken Quickly

Wayne explains the rental process as a funnel.

A good tenant may inquire about dozens of listings.

They are comparing:

• Price
• Property condition
• Location
• Photos
• Communication
• Availability
• Landlord responsiveness

If your listing is poorly presented, overpriced or you take six hours to respond, another landlord may already have booked the showing.

The best applicants often disappear first.

That leaves slower landlords competing over whatever applicants remain.

Better Systems Produce Better Tenants

Wayne's experience has been that landlords with better systems tend to attract and secure better tenants.

That means:

Great photos.

Correct pricing.

Fast responses.

A desirable property.

Professional communication.

Strong screening.

Efficient showings.

Clear expectations.

Wayne recently filled an Edmonton basement suite within days despite expecting the rental to be difficult.

The successful applicant ended up being one of the strongest applications Wayne and Gabby had seen recently.

The lesson:

Where you advertise matters. How you operate matters more.

Facebook Marketplace, RentFaster and Other Platforms

Wayne does use Facebook.

RentFaster is another commonly used option in Alberta.

Other platforms may dominate other markets.

But Wayne does not believe there is some secret website where only great tenants are waiting.

Research where your local tenants actually search and make sure your property appears there.

Then outperform competing landlords once the inquiry arrives.

What Should Investors Look for in Condo Bylaws?

The second listener question comes from Carmen, who asks for a simplified breakdown of what investors should look for inside condominium bylaws.

Gabby's approach is straightforward.

Ask:

What rules could prevent me from operating this rental property the way I intend to?

That is the lens investors should use when reviewing the bylaws.

Rental Restrictions

Some condominium corporations restrict how many units within the complex may be rented.

Before purchasing, determine whether:

• Rentals are allowed
• There is a rental cap
• Owner occupancy requirements exist
• Your specific unit can currently be rented

Buying a condo and discovering afterward that you cannot legally operate it as a rental creates an obvious problem.

Short-Term Rental Restrictions

If your plan involves Airbnb or another short-term rental strategy, check this immediately.

More condominium corporations are restricting or prohibiting short-term rentals.

Do not assume they are allowed simply because municipal rules permit them.

The condo corporation can have its own restrictions.

Business Restrictions

Another issue is operating businesses from condominium units.

This can create insurance and liability complications.

It can also violate condominium bylaws.

If a tenant begins operating a business and the condo corporation prohibits it, the landlord may suddenly be stuck dealing with a lease that conflicts with the condo rules.

Understand the restrictions before leasing the property.

Pet Restrictions

This is one of the biggest issues Wayne and Gabby look for because they operate pet-friendly rentals.

Condo bylaws may restrict:

• Number of pets
• Size
• Weight
• Breed
• Type of animal

That can dramatically reduce your tenant pool.

It can even affect fix-and-flip investors.

Wayne shares an example of an investor who received a full-price offer on a renovated condo, only to lose the buyer because the condo bylaws prohibited large dogs.

The bylaws can affect more than landlords.

They can affect resale value too.

Who Is Responsible for What?

Do not assume the condominium corporation automatically takes care of everything outside the unit.

Responsibilities vary.

One corporation may cover every exterior window.

Another may cover only certain windows.

Doors, fences, windows, balconies and other components may have different maintenance responsibilities depending on the bylaws.

Understand exactly what belongs to:

The condo corporation

versus

The individual owner.

Then compare those responsibilities against the condition of the property and the condo corporation's financial documents.

"I Want to Invest, But I Can't Get Started"

The final listener question came from someone who knows they want to invest in real estate but feels stuck.

Wayne believes the biggest obstacle is usually:

Uncertainty.

You do not know exactly what happens next.

That creates fear.

Then fear creates hesitation.

You wonder:

How do I finance it?

What if I buy the wrong thing?

What if nobody rents it?

What if something breaks?

How does insurance work?

How do utilities work?

How do I screen tenants?

How do I know the numbers are right?

Eventually you have so many unanswered questions that doing nothing becomes more comfortable than moving forward.

You Will Never Feel 100% Ready

Wayne's message is that there is a limit to what education can do before experience has to take over.

You can read.

Watch videos.

Take courses.

Listen to podcasts.

Study spreadsheets.

But eventually you need to actually purchase the first property.

Confidence comes from doing.

Your first deal may feel intimidating.

Then you finish it and realize:

"That actually wasn't as bad as I thought."

The second one becomes easier.

Then the third.

Sometimes You Need Someone to Hold Your Hand

Some investors can educate themselves and eventually take the leap.

Others need somebody experienced beside them.

That is one of the biggest roles Wayne sees coaching and mentorship playing.

It is not simply more information.

It is having someone available when the next uncertainty appears.

Instead of sitting on the question for six months, you ask it, get an answer and keep moving.

The goal is:

Confidence. Clarity. Action.

REI Masters Mentorship Special Offer

Join the REI Masters Mentorship Program before October 3, 2026 and receive:

24 months of mentorship for the price of 12.

That includes:

• Direct coaching from Wayne and Gabby
• Weekly live coaching
• Courses and educational resources
• Deal analysis
• Market analysis
• Property management systems
• Financing and JV guidance
• Personalized roadmap
• Access to the REI Masters community

You also receive entry to the upcoming REI Masters annual retreat in Edmonton.

Learn more or book a discovery call:

www.reimasters.ca

The 5% Rule™

Want to understand how much cash flow a rental property should produce?

Search:

The 5% Rule by Wayne Hillier

on Amazon.

Watch the Morning Show

Join Wayne and Gabby every weekday morning at 7:00 AM Mountain Time on YouTube.

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions:

[email protected]

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for Canadian real estate investors. www.finngo.com/rei

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Canada Housing Starts Are Down — But What Does That Actually Mean?

Housing starts are down.

Sounds important.

But does that mean Canada is building fewer homes?

Does it mean housing prices are about to rise?

Does it mean fewer rental properties are coming?

Not necessarily.

On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby dig underneath the housing-start headlines and explain why the number most people quote does not tell investors nearly enough on its own.

The problem is simple:

When Canada reports "housing starts," that number combines very different types of housing.

A detached family home is not the same thing as a townhouse.

A townhouse is not the same thing as a 200-unit apartment building.

And a condominium tower is definitely not the same thing as a purpose-built rental building.

Yet much of that gets bundled together.

What Is a Housing Start?

A housing start is not a permit.

It means construction has actually begun.

In practical terms, that generally means work has reached the point where the building's foundation or equivalent construction stage has begun.

That distinction matters.

A building permit represents an intention to build.

A housing start means construction has actually moved forward.

But even knowing that still doesn't answer the most important question:

What kind of housing is being built?

The Headline Number Can Be Misleading

Wayne uses recent CMHC data to demonstrate the problem.

The national housing-start number includes:

• Single-detached houses
• Semi-detached homes
• Duplexes
• Townhouses
• Condominiums
• Apartment buildings
• Other multi-unit housing

The broad "all other" category can therefore represent completely different markets.

Some units may eventually be purchased by homeowners.

Others may become rental properties.

Some could be high-rise condominiums.

Others could be row houses or large apartment buildings.

Without knowing the mix, investors should be very careful about making conclusions from the headline number.

A Rental Unit Is Not the Same as a Home for Sale

This is where Wayne believes the housing conversation becomes especially important.

Canada has spent several years encouraging density and rental construction.

Programs such as the Housing Accelerator Fund and favourable financing programs have helped make larger multi-unit developments attractive to investors and developers.

The result has been a major increase in purpose-built rental development in many cities.

But building more rental units does not necessarily solve the same problem as building more homes people can actually purchase.

Those are two different markets.

Are We Building the Wrong Type of Housing?

Wayne raises a question that he believes deserves much more attention.

What happens when a perfectly usable single-family house is demolished and replaced with eight or twelve small rental units?

You created more rental units.

But you also removed one house from the ownership market.

If this happens repeatedly across a city, it is possible to simultaneously create:

Too much rental supply

while creating:

Too little traditional ownership housing.

Wayne believes this may already be happening in some Canadian markets.

He is clear that the available national data does not provide enough detail to prove that conclusion definitively.

But based on the information available, it is something investors should be watching closely.

Why Local Data Matters More

This is why Wayne does not rely heavily on national housing-start headlines when making investment decisions.

Canada is not one real estate market.

Edmonton is different from Toronto.

Calgary is different from Vancouver.

A neighbourhood can behave differently from another neighbourhood in the same city.

And a single-family rental can behave very differently from a one-bedroom apartment.

Investors need to go deeper.

Look at what is actually being permitted and built in the municipality where you invest.

Are developers building:

• Apartments?
• Condos?
• Townhouses?
• Duplexes?
• Single-family houses?
• Basement suites?
• Garage suites?

That information is far more useful than knowing the national housing-start number.

Permits Aren't Starts Either

Gabby also points out another distinction.

Building permits can help investors understand what developers are planning.

But a permit does not guarantee construction.

Projects can be:

Delayed.

Redesigned.

Refinanced.

Cancelled.

A housing start tells you that construction has progressed further.

Even then, the investor still needs to understand exactly what is being built.

Why Multi-Unit Starts May Be Slowing

Wayne believes much of the slowdown is likely coming from multi-unit development rather than detached housing.

That would make sense based on what he is hearing within the investor and development community.

Developers are dealing with:

• Softer rents
• Higher vacancies
• Higher construction costs
• Financing challenges
• Large amounts of competing supply
• Projects that no longer produce the expected returns

Wayne is also seeing and hearing about projects being delayed or cancelled.

That may eventually help rental markets rebalance.

But there is still a significant amount of previously approved and currently under-construction inventory that has yet to reach tenants.

Follow the Money

The episode also looks at why investors naturally gravitated toward multi-unit development.

Imagine owning a large lot.

Building one new house may not generate an attractive enough return.

Build two homes and the economics improve.

Build eight or twelve rental units with favourable development rules and financing incentives, and suddenly the numbers look much more attractive.

Investors responded to the incentives that existed.

Builders responded to demand from investors.

Municipalities changed zoning to encourage density.

The result was predictable.

A tremendous amount of multi-unit housing was proposed and built.

Does Canada Still Need More Houses?

Wayne's answer is:

Probably.

But he is careful to call that his interpretation rather than a proven conclusion because the available information does not provide enough detail.

There may be markets where rental units are becoming oversupplied while traditional family housing remains relatively scarce.

That distinction matters enormously to investors.

If you simply hear:

"Housing starts are down"

and make an investment decision from that headline, you are missing most of the story.

Understand the Property You Actually Own

For Wayne, the lesson comes back to the fundamentals.

Don't invest based on a national headline.

Understand:

• Your city
• Your neighbourhood
• Your property type
• Your tenant profile
• Your competition
• Your purchase price
• Your rent
• Your expenses
• Your cash flow

A national statistic can be useful information.

It should not replace local market analysis.

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A $13 Billion Meta Data Centre Is Coming Near Edmonton. What Does It Mean for Real Estate?

A massive new technology investment is putting Alberta back in the national spotlight.

Meta is developing its first Canadian data centre in Sturgeon County, just north of Edmonton, with an estimated investment of approximately $13 billion.

But for real estate investors, the important question is not simply:

"How big is the project?"

It is:

"What will this actually do to housing, rents, jobs and property values?"

On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby look at both sides of the story.

Could large-scale data centres create new construction activity, jobs and economic growth around Edmonton?

Absolutely.

Does that mean investors should immediately start buying houses beside them?

Not necessarily.

Today's episode also covers another developing story out of Ontario, where investors connected to the Simple Investor property-management model were reportedly told that rental payments were being delayed while the company dealt with market and liquidity challenges.

The two stories may seem completely different, but they reinforce the same lesson:

Understand what you are investing in and never replace fundamentals with excitement.

Ontario Investors Face Delayed Payments

Wayne and Gabby begin with reports involving Simple Investor and its affiliated property-management operation.

According to the report discussed on the show, some investors who owned properties through the model were told that rental payments were being delayed because of market and liquidity challenges.

One investor reportedly owned six properties and had relied on the rental payments to service mortgages.

That raises a question Wayne repeatedly comes back to:

Where is the rent actually going?

If a tenant pays rent to a property-management company, the owner should understand:

• Where the money is held
• How management fees are deducted
• When the remaining rent is transferred
• Whether funds are segregated
• Who controls the accounts
• What happens if the management company experiences financial trouble

Wayne's concern is not about making conclusions regarding what occurred in this particular situation without all the facts.

It is about investors understanding the structure they are putting their money into.

Hands-Off Investing Still Has Risk

One of the attractions of these types of investments is that they can appear extremely simple.

Buy the unit.

Let somebody else manage everything.

Collect the payment.

But handing control to another company does not eliminate risk.

It transfers some of that control to somebody else.

Wayne explains why one of the reasons he originally chose real estate was the ability to control more of the investment himself.

If something goes wrong with his property, tenant, financing or expenses, he can respond directly.

The more layers added between the investor and the asset, the more important due diligence becomes.

Then Comes Alberta's Data-Centre Boom

The second half of today's episode shifts to a very different story.

Meta is building a massive data centre in Sturgeon County, north of Edmonton.

The development represents approximately:

$13 billion in investment.

Alberta is also attracting interest from numerous other data-centre developers.

Why Alberta?

Several factors make the province attractive:

• Large amounts of available land
• Natural gas and electricity infrastructure
• Energy-industry expertise
• Cold temperatures that can reduce cooling requirements
• A business environment actively pursuing major investment

For Alberta, this could become a significant new industry.

More Than 100 Projects Have Been Proposed

There has been enormous interest in building data centres across Alberta.

But Wayne stresses an important distinction:

Proposed does not mean built.

A hundred proposals do not equal a hundred completed projects.

Investors need to separate:

Announcements

from

Approvals

from

Construction

from

Completed operating facilities.

Meta's project is significant because it has moved beyond being simply an idea.

What Could This Mean for Edmonton Real Estate?

A project of this size can create economic activity.

Construction workers need somewhere to live.

Contractors need services.

Suppliers expand.

Companies supporting the project may establish local operations.

Infrastructure investment follows.

All of those things can support an economy.

But Wayne cautions against immediately converting an economic announcement into a real-estate prediction.

A $13-billion project does not automatically mean:

Rents will explode.

Property values will skyrocket.

Every nearby neighbourhood becomes a great investment.

You still have to analyze the actual property.

Don't Invest Based on the Headline

Wayne's investment philosophy is straightforward.

He does not want to buy a property because he hopes Meta causes it to appreciate.

He wants to buy a property that already works.

That means analyzing:

• Purchase price
• Market rent
• Expenses
• Financing
• Vacancy
• Tenant demand
• Cash flow

If the property makes money today, future economic growth becomes upside.

If the investment only works because you are hoping a massive technology project pushes its value higher, you are speculating.

The Business Inside the Building

Wayne describes a rental property as two things.

There is the asset, the physical property.

Then there is the business operating inside it.

The investor has much more control over the business.

You can control:

The property you purchase.

The tenant profile you target.

The quality of the rental.

The neighbourhood.

The number of bedrooms.

The rent.

The expenses.

The management.

You cannot control whether buyers decide to pay more for the property five years from now.

That is why Wayne builds his investment strategy around operating profitability first.

Should You Buy Beside a Data Centre?

This is where the conversation becomes more complicated.

Data centres can create employment and economic activity.

But being directly beside one may not necessarily be desirable.

Communities in parts of the United States have raised concerns about:

• Constant cooling-fan noise
• Electricity demand
• Water use
• Construction activity
• Industrial traffic
• Visual impact

The long-term effect depends heavily on the type of facility and where it is located.

In the case of Meta's Sturgeon County development, the site is within Alberta's Industrial Heartland rather than being dropped into the middle of an established Edmonton residential neighbourhood.

Still, investors should understand both the positive and negative possibilities before buying nearby.

Buyer Perception Matters

Gabby raises an important point.

Even if somebody cannot prove that living near a data centre is harmful, potential buyers may still decide they do not want to live there.

That matters.

Real estate values are ultimately influenced by supply and demand.

If enough buyers avoid a location because they perceive it negatively, that perception itself can affect demand.

Investors therefore need to understand not only the physical impact of a project but how the public is likely to react to it.

What About Electricity Costs?

Large data centres require enormous amounts of electricity.

Capital Power has agreed to initially supply 250 megawatts to Meta's Sturgeon County facility.

Wayne discusses the possibility that major power demand could have broader effects on electricity infrastructure and costs.

The ultimate impact remains uncertain and will depend on how Alberta expands generation and transmission capacity.

For landlords who include utilities in rent, any major change in electricity costs matters because higher operating expenses directly reduce cash flow.

Jobs Matter, But What Kind of Jobs?

Another important question is what happens after construction is finished.

A project of this scale can employ thousands during development.

But permanent operations may require significantly fewer employees.

That means investors should distinguish between:

temporary construction employment

and

long-term permanent employment.

A three-year construction boom can create short-term rental demand.

Long-term real estate fundamentals depend much more heavily on lasting employment and population growth.

Wayne Is Still Buying Edmonton

Wayne's conclusion is not that data centres are good or bad for Edmonton real estate.

There is still too much uncertainty for that.

What he does know is that he is not buying Edmonton property because Meta is coming.

He is buying Edmonton property because he can currently find investments that:

• Cash flow
• Produce strong returns
• Attract good tenants
• Work without depending on appreciation

If the data-centre boom strengthens Edmonton's economy over the next decade, that becomes additional upside.

But the investment needs to work without it.

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Your Down Payment Is NOT Enough: The Real Cost of Buying a Rental Property

You saved the 20% down payment.

You found the property.

You got the mortgage.

You're ready to buy.

Not quite.

On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby break down the costs investors often forget when budgeting for their first rental property.

Using a hypothetical $500,000 legal suited house, they show why an investor who thinks they need $100,000 may realistically want closer to $116,000 to $117,000 available before closing.

The difference comes from expenses that are not necessarily hidden, but are very easy to forget.

The $500,000 Rental Property Example

Assume you're buying a $500,000 house with a legal basement suite.

At 20% down:

Down payment: $100,000

Most new investors stop there.

But the down payment is only one part of the cash required.

Before buying, Wayne and Gabby say investors should also think about:

• Appraisal
• Home inspection
• Sewer scope
• Legal fees
• Title insurance or related closing costs
• Property tax adjustments
• Immediate repairs
• Cleaning
• Furnace and duct servicing
• Yard cleanup
• Reserve funds

These seemingly smaller costs can quickly add thousands of dollars to the amount required.

Appraisal

Mortgage lenders commonly require an appraisal to confirm the property supports the value being financed.

Wayne and Gabby suggest budgeting roughly:

$300–$500

depending on the lender and property.

Sometimes the investor does not even notice the cost because it appears through closing adjustments or is withdrawn separately.

But you are still paying for it.

Home Inspection

Wayne and Gabby strongly recommend having the property professionally inspected.

For the suited-house example discussed today, they suggest budgeting approximately:

$600

A good inspector evaluates the major systems and components of the property, including:

• Roof
• Attic
• Foundation
• Plumbing
• Electrical
• HVAC
• Appliances
• Moisture
• Smoke detectors
• Doors
• Flooring
• Exterior components

The inspection also gives you a roadmap of items that may need attention immediately after possession.

Sewer Scope

This is one Wayne strongly recommends.

For an older residential property, he suggests having the sewer line inspected with a camera.

Budget approximately:

$250–$300

Why?

Because a sewer replacement can be extremely expensive.

Wayne and Gabby discuss a previous replacement that cost approximately $15,000 before additional related work.

A few hundred dollars spent investigating the line can uncover a potentially very expensive problem before closing.

Legal Fees

Legal costs are another expense investors sometimes underestimate.

Depending on the transaction and legal team, Wayne and Gabby suggest costs may range from roughly:

$1,500 to $2,000+

Wayne's approach is not to select a lawyer based solely on price.

A straightforward transaction is straightforward until something goes wrong.

That is when having the right professional matters.

Title Insurance and Closing Adjustments

Depending on the property and province, investors may also encounter costs such as title insurance.

Property tax adjustments are another common surprise.

If the seller has already paid property taxes for a period after your possession date, the seller is credited for that amount at closing.

That increases the cash you need to bring to the lawyer.

The Property Will Probably Need Something

Wayne says almost every property they buy requires immediate work after possession.

Not necessarily a major renovation.

It could be:

Expired smoke detectors.

Doors that do not close properly.

Loose baseboards.

A leaking shower diverter.

A thermostat that is not mounted correctly.

A furnace that has not been serviced.

A damaged closet door.

Minor plumbing or electrical issues.

Individually, these may seem small.

Together, they add up quickly.

Wayne and Gabby typically budget:

$2,000–$3,000 per property

for immediate repairs and maintenance.

Don't Defer Everything

One mistake investors make is saying:

"It's not that bad. I'll deal with it later."

But deferred maintenance eventually becomes your problem.

Wayne and Gabby prefer to fix smaller issues before placing a new tenant whenever possible.

That provides a safer, cleaner and better-maintained property for the tenant while reducing the likelihood of emergency service calls later.

Cleaning, Furnaces and Landscaping

Other costs investors can easily overlook include:

Professional cleaning.

Furnace servicing.

Duct cleaning.

Gutter cleaning.

Landscaping.

Lawn cleanup.

These expenses can add hundreds or even thousands more depending on the condition of the property.

When Wayne and Gabby added the potential acquisition-related costs together in today's example, they reached approximately:

$6,750 beyond the down payment.

And there is still one more major item.

The Reserve Fund

Wayne considers this one of the most important systems an investor can put in place.

Start every rental property with a cash reserve.

His recommendation:

Three months of rent on day one.

If the suited house rents for approximately $3,000 per month total, that means starting with:

$9,000 in reserves.

Then continue depositing some or all of the property's monthly cash flow into that reserve.

The reserve grows.

Then when something breaks, you use the property's money to fix it.

A washing machine fails?

Reserve.

Furnace repair?

Reserve.

Vacancy?

Reserve.

Lower rents?

Reserve.

The goal is to operate the rental like a business instead of relying on your personal chequing account whenever something goes wrong.

$100,000 Becomes $116,750

In today's example:

Purchase price: $500,000

20% down payment: $100,000

Potential additional acquisition and repair costs: approximately $6,750

Starting reserve: $9,000

Total amount to consider budgeting:

Approximately $115,750–$116,750, depending on the final costs and repairs.

The exact number will vary from property to property.

The lesson is what matters:

Do not save exactly enough for the down payment and assume you are ready to buy.

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Questions:

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Canada's Construction Boom Is Finally Slowing Down

For the last few years, Canada has been building aggressively.

More apartments.

More condos.

More purpose-built rentals.

More infill.

More density.

But new Statistics Canada data suggests that construction intentions are finally beginning to slow.

In July 2026, the total value of building permits issued across Canada fell 17.3% to $12.2 billion.

Residential permits were also down, with multi-family projects accounting for most of the residential decline.

For real estate investors, this matters because new supply has been one of the biggest forces affecting rents, vacancies and property values across the country.

Today, Wayne and Gabby break down what the slowdown could mean, particularly for Edmonton and Alberta.

Building Permits Are Falling

Statistics Canada reported that the total value of building permits across Canada declined sharply in July.

Residential permit values fell as well, including a significant decline in multi-family construction intentions.

Alberta also experienced a meaningful monthly decline in total permit values.

The important distinction:

A permit is not a completed building.

It represents an intention to build.

A project may still be delayed, redesigned, refinanced or abandoned altogether.

That means the rental supply already under construction is still coming.

But fewer new projects entering the pipeline could eventually help the market rebalance.

Edmonton Still Has a Lot of Supply Coming

Wayne's concern is not that Edmonton suddenly stopped building.

Far from it.

There are still a significant number of purpose-built rental projects already under construction or far enough through the development process that they are likely to hit the rental market.

Those buildings still need to be completed.

Then they need tenants.

The question is:

How long will it take for Edmonton to absorb all of that new rental supply?

Wayne believes it could take several years.

Why Developers May Be Pulling Back

Wayne discusses several reasons developers may be becoming more cautious.

Financing costs have changed.

Construction costs have increased.

Rents have softened in some segments.

Vacancy has increased.

And developers now have to consider the large amount of competing inventory already coming onto the market.

A project that looked great two years ago may look very different today.

That becomes particularly important when a development was financed using construction or bridge financing and the permanent financing available at completion no longer produces the same numbers.

Construction Costs Are Still Increasing

Wayne and Gabby share a recent example from one of their own townhouse investments.

Shortly after purchasing units in the complex, the condominium corporation received an updated roofing quote.

The final cost came in approximately $90,000 higher than expected.

The condo corporation responded by temporarily increasing condo fees rather than issuing a large special assessment.

The lesson was not really about condo fees.

It was about construction costs.

If replacing shingles on a townhouse complex can suddenly cost substantially more than anticipated, developers working on multi-million-dollar projects are facing the same problem on a much larger scale.

Edmonton May Have Overshot

A few years ago, Edmonton had the opposite problem.

Vacancy was extremely low.

Rental supply was tight.

Tenants were struggling to find housing.

Rents were increasing quickly.

Government and developers responded by creating and building more housing.

Wayne and Gabby believe the market may now have moved too far in the opposite direction.

The supply shortage was addressed.

But construction kept coming.

That creates a period where landlords may need to compete harder for tenants while the market absorbs the new units.

Will Edmonton Rents Keep Falling?

Wayne believes rents will continue softening in certain segments of the market.

But he does not believe every rental property will be affected equally.

The largest pressure may fall on property types facing the most new competition.

That includes:

• Main-floor suites
• Basement suites
• Smaller infill units
• Purpose-built rental units competing for similar tenants

There are simply more choices available to renters.

Full Houses Could Be Different

At the same time, Wayne sees a different opportunity developing in full-house rentals.

If tenants search the market and see hundreds of smaller suites but very few full houses with basements, garages and yards, demand can shift toward the scarcer product.

That is an important distinction.

Saying:

"Edmonton rents are falling"

is too broad.

The better question is:

Which rents are falling?

Different asset classes can behave completely differently inside the same city.

The Supply and Demand Lesson

This is ultimately a supply-and-demand story.

When rental supply is too low, rents increase.

Developers react.

Governments react.

Construction increases.

Eventually supply catches up.

Then supply can exceed short-term demand.

Vacancy rises.

Rents soften.

Developers become more cautious.

Construction slows.

Eventually the market moves toward balance again.

The cycle continues.

Real estate investors need to understand where they are inside that cycle.

Is the Construction Boom Finally Slowing?

During today's rapid-fire Q&A, Gabby asks Wayne directly:

Is the new construction boom finally slowing down?

Wayne's answer:

Yes.

But the bigger uncertainty is how long the effects will take to work through the market.

Hundreds of millions of dollars of projects are already permitted or underway.

Some will finish.

Some may not.

And the impact on rents and vacancies will take time to become clear.

How Long Could Edmonton Take to Absorb the Supply?

Wayne estimates that Edmonton could take approximately five to six years to fully absorb the current wave of purpose-built rental supply and return to the type of vacancy environment he considers more balanced.

That is Wayne's estimate, not an official forecast.

The timeline could change significantly depending on:

• Population growth
• Migration
• New construction
• Project cancellations
• Interest rates
• Employment growth
• Rental demand

Why Cash Flow Matters More Than Ever

The episode closes with a listener asking how much cash flow a rental property should have.

Wayne points back to the 5% Rule™.

The reason he focuses so heavily on cash flow is not because he views it as spending money.

He views cash flow as protection.

If rent falls by $200 but the property was producing $500 per month, the investor still has room.

If the property was only producing $100, that same rent decline pushes it negative.

Multiply that across a large portfolio and small differences become significant.

Cash Flow Is a Risk Mitigator

Wayne describes cash flow as the ultimate risk mitigator.

It protects investors against:

• Lower rents
• Higher vacancy
• Higher interest rates
• Unexpected repairs
• Rising operating expenses
• Market downturns

Investors cannot control all of those variables.

But they can control how much margin they build into the property when they buy it.

What About Fort McMurray?

A listener also asks about Fort McMurray.

Wayne says he has heard positive things recently about rental demand in the market.

However, he remains cautious because Fort McMurray has historically been a more cyclical, boom-and-bust market.

For Wayne, predictability matters.

He prefers markets where he feels more confident about long-term tenant demand and the sustainability of the rental business.

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Edmonton Garden Suites Are One of Canada's Biggest Real Estate Opportunities

Today's episode is all about one of Wayne's favourite real estate investment opportunities right now:

Multi-unit garden suites in Edmonton.

Wayne and Gabby break down why Edmonton's current zoning creates an unusual opportunity to keep an existing house at the front of a property while developing multiple additional rental units in the backyard.

For the projects Wayne is currently working on, the attraction comes down to three major things:

Cash flow.

Forced equity.

The potential to refinance and redeploy capital.

And unlike traditional infill development, the strategy does not necessarily require tearing down a perfectly good house.

Why Wayne Started Looking at the Backyard

When Edmonton changed its zoning rules to encourage more housing density, much of the development community focused on tearing down existing houses and building more units on the front portion of the property.

Wayne looked at it differently.

Instead of asking:

How much more can we build if we tear the house down?

He asked:

What if we keep the house and develop the unused land behind it?

That led to the multi-unit garden suite strategy.

On the right Edmonton lot, Wayne says investors can potentially keep the existing house and add as many as four additional rental units in the backyard.

Why Edmonton?

According to Wayne, Edmonton currently provides a unique combination of:

• Flexible development rules
• Affordable land and housing
• Strong rental demand
• High-paying employment
• A strong tenant profile
• Alberta's landlord and tenant operating environment

That combination is what makes the opportunity especially interesting to him.

Wayne says that if this same development opportunity existed in a market where he did not want to operate a rental business, he would be far less interested.

The market still matters.

The Housing Accelerator Fund

Wayne explains that Edmonton's zoning changes followed broader efforts to increase housing supply and density.

He discusses the federal Housing Accelerator Fund and Edmonton receiving significant funding in exchange for housing and zoning initiatives designed to allow more homes to be built.

Those changes opened the door to development opportunities that previously did not exist.

Why the Opportunity May Not Last Forever

One of Wayne's biggest warnings:

Do not assume today's zoning rules will exist forever.

Rules change.

Municipalities adjust development regulations.

Neighbourhood opposition can increase.

Height, setback and density rules can all be modified.

Wayne points to Calgary as an example of a city where development rules have already started changing.

His concern is that investors may discover the opportunity after the rules have already become more restrictive.

The Lots Are Limited Too

Zoning is not the only constraint.

The property itself needs to work.

Gabby explains that multi-unit garden suites require enough usable backyard space.

Wayne calls it needing a:

"Big booty."

A large backyard.

That means investors are competing for a limited number of properties with:

• Large enough lots
• The right configuration
• A usable existing house
• A purchase price that still makes the development profitable

Today, Wayne says much of the competition for those properties is still homeowners.

But if more investors and developers begin targeting the same lots, demand could increase.

Wayne's First Fourplex Garden Suite Is Almost Finished

Wayne and Gabby also give an update on their High Park multi-unit garden suite project.

The four suites are essentially complete internally.

Remaining work includes exterior items such as:

• Sidewalks
• Landscaping
• Fencing

Wayne is preparing to begin marketing the four one-bedroom suites.

This is one of five projects Wayne says they currently have underway.

The Cash Flow

This is where Wayne believes the strategy becomes especially compelling.

On the type of fourplex garden suite projects he is developing, Wayne says there is potential for:

$1,500+ per month in additional cash flow

after financing and operating expenses.

That is not gross rent.

That is the projected remaining monthly cash flow from the additional units based on the project assumptions Wayne is discussing.

How Does It Perform on the 5% Rule™?

Wayne then applies his 5% Rule™ Cash Flow Test.

His framework:

5–6% = minimum acceptable

7–9% = strong

10%+ = exceptional

For the garden suite project discussed in today's episode, Wayne says the projected result is approximately:

13.8%

or roughly:

14% on the Cash Flow Test.

That is why Wayne considers these projects unusually attractive from a cash-flow perspective.

Actual results will depend on construction cost, financing, rents, operating expenses, property price and the specific project.

Cash Flow Is Only Part of the Opportunity

Wayne says the bigger opportunity may be what happens to the value of the property after construction.

Suppose the total amount invested into the property and development is one number.

But the completed property appraises for significantly more.

The difference becomes created equity.

On some of Wayne's current projects, he says he expects to create:

More than $250,000 in equity upon completion.

That creates another potential strategy.

The BRRRR Strategy — But With Development

Traditional BRRRR:

Buy Renovate Rent Refinance Repeat

Wayne proposes changing the renovation step.

Instead:

Buy Build Rent Refinance Repeat

Rather than renovating a kitchen or adding a basement suite, the investor develops multiple new rental units in the backyard.

If the completed property appraises high enough, refinancing may allow the investor to recover a significant portion of the capital invested.

In the right project, Wayne believes there may even be an opportunity to recover most or potentially all of the initial capital.

That capital can then be redeployed into another property.

Cash Flow + Equity + Refinance Potential

This is what makes the strategy so exciting to Wayne.

One development can potentially provide:

• Strong monthly cash flow
• Significant new equity
• Mortgage principal paydown
• Long-term appreciation exposure
• Additional rental units
• The potential to refinance
• The ability to redeploy capital

And the original house can remain in place producing rental income.

A New Property Closing Today

Wayne and Gabby also discuss another rental property they are taking possession of today.

Their projected cash flow:

Approximately $700 per month.

Wayne plans to leave that cash flow inside the property reserve.

Starting with approximately three months of rent in reserves and adding $700 per month would contribute another:

$8,400 per year

before any future rent increases.

His point:

Cash flow is not necessarily spending money.

Cash flow builds resilience.

A healthy reserve protects the investment against repairs, vacancy, changing rents and higher interest rates.

Want to Know What You Can Build?

If you already own an Edmonton property or want to purchase one for a garden-suite development:

www.edmontongardensuites.com

You can book a consultation and have the team assess what may be possible on a specific property.

The site also includes information on existing garden-suite models and development options.

The 5% Rule™

Learn Wayne Hillier's cash-flow framework for Canadian rental properties.

Search:

The 5% Rule by Wayne Hillier

on Amazon.

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, market analysis, financing, joint ventures, property management and building a profitable Canadian real estate portfolio.

www.reimasters.ca

Watch the Morning Show

Join Wayne and Gabby every weekday morning at 7:00 AM Mountain Time on YouTube.

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions:

[email protected]

Upcoming Event

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

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