Finding tenants that pay rent on time, maintain the property, do not have a shady identity, and yes, do not drive you up the wall are indeed scanty, thus, hard to find. Owning a rental property brings in many perks, but it’s not that easy to relish those benefits.
The responsibility of finding a good tenant is overwhelming as you have the protection of your property on your mind as well.
No landlord would allow a tenant who turns the property into a disaster, right? Would you? “No way”, we hear you say!
Yes, there are challenges when it comes to the journey of finding a good occupant. However, it is not impossible. You can follow the tips we have hashed out below to attract and retain good tenants, and that too without the mercy and assistance of a real estate agent. Dig in, pronto!
Surefire tips for finding good tenants in Toronto
Whether you are a good landlord or a not-so-good one, you are bound to run into a terrible tenant who does not abide by the rent payment cycle, ignores your calls, breaks the rules, doesn’t pay the bill on time, makes a hash of your property, and whatnot.
As soon as you evict them, you feel a temporary sense of relief. Yes, temporary relief because, no sooner than you have done this, heavy clouds of finding a new dweller would be hovering over your head.
Now, walk through this ultimate guide to finding good tenants, and soothe your brain that you have been racking for so long.
Know & research your target
The moment you decide to hire a tenant, you develop certain expectations of what your tenant would be like. So, start by knowing what you want, and then research the potential tenants available in the area. Know the city amenities available nearby, the rent you should charge as per the laws that regulate housing and renting, and so on. Putting in time and effort in this step may get you a tenant who will give you the feel of a good neighbour.
Check their credit
As soon as you start to receive rental applications, and you think you’ve got your hands on the right tenants, it is time to start the full tenant screening, and that for should include a look at their credit. Jumping the gun at this point may result in a tragedy later on. , remember that if the chosen tenants are new to the country, they might not yet have a credit score that shows their financial situation precisely. And in this case, you can ask them to yield proof of stable income.
Verify their income
Once you get the proof of their income, it is time to verify it. This step can be accomplished by asking for a T4, receipt from their bank to ensure their regular deposits, a pay stub, or a record of employment. Generally, it is recommended that the tenants should have 30 percent of their monthly salary set aside to pay the rent. To ensure you’re choosing the right tenant, this is one of the critical steps you can consider as a landlord. Or you may find yourself in a relentless trap of a tenant who doesn’t care a bit about rent payment matters.
Check their rental history
An ideal tenant will deliver the references to new landlords from either previous employers or landlords. You might have come across that landlords technically cannot give their tenants an unfavorable or bad reference. However, this is far from the truth. Landlords can hold to the facts, such as if the lessee was a slow rent payer, or damaged property, if they notified the landlord before vacating a property, and so on. When asking these things from previous landlords, ask for proof. If a landlord says they were good tenants, ask them the reason behind the recommendation.
As a landlord, you can investigate their background and check if they have any criminal history or not during the tenant screening procedure. However, you need to get permission first and can be a lengthly process..
What’s their lifestyle?
What if they are immature or young, smell weeds or cigarettes, rent for somebody else, has a sob story, or lie about why the police called them, and whatnot. The lifestyle of your tenant will determine how they would keep and maintain your property. So, make sure you see their lifestyle and ask them questions like when they’re moving in, are comfortable with signing an agreement for rent for a year, and so on. If you notice any red flags, then do a runner, and come to the next application.
Ensure that they comfortably pay the deposit
Generally, when a new tenant comes to occupy a property, they would need to put down a deposit, which is last month’s rent. If they cannot make the payment when you ask them, consider it as an indications if they can persist in reimbursing their monthly rent. And keep in mind that this is not a security deposit but rather a rent deposit. In Toronto, damage and security deposits on rental property are not permitted.
So, how can you make finding tenants easier?
Finding tenants anywhere is mind-numbing, let alone in Toronto. Fret not. We specialize in residential property management. Our strategies are designed such that not only do they help you save money at every step of the process, but they also support you incredibly in getting a good tenant. Free yourself from the shackles of stress, and let us do it for you!
FAQs about finding the right tenant
Q: How do I find the perfect tenant?
A: To find the perfect tenant, you can consider the following tips:
- Always evaluate and check references
- Professionaly screen potential tenants
- Do a credit check, dont accept them from tenants
Q: What do owners look for in tenants?
A: Owners look for the following documents when finding a tenant:
- Photo identification
- Reference letters (from previous landlords & employers)
- Rental history
- Credit score
- Evictions & late rent payments
Q: Should a rental property be clean when you move in?
A: Although it is the responsibility of a tenant to leave the property clean, the landlord must check the cleanliness of the residence before a new tenant moves in. How one person leaves a property is not always how another wants it. This is because a new tenant is only accountable for cleaning the property when leaving the place to move into a new one.