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Real Property Management Service Toronto

What to do if a potential customer has no credit?

Toronto Homes For Rent: Let’s say somebody is new to Canada, a new tenant, and they don’t quite have any credit, what would we suggest you do in that situation? 

This question comes up a lot.

It deals mainly with students I would say is the most common place where someone is coming here and they don’t have any intention of getting a job.

They don’t have any credit and it’s all about how you can protect yourself as a landlord. Sometimes you can get credit checks from other countries. Pulling them from the US is super simple. (At least for us in Canada)

When somebody comes from the Europe, the same systems and tools don’t transfer over and the information is not as free flowing. And so you can work with tenants to do things like prepayments of rent, but it has to be done in a way that the tenants making the offer to you.

What I mean by that is you really can’t ask for it, but if they offer, you can say yes. I know that sounds strange because it is strange. It’s just the way the law set up. If they offer that to you, you have to make sure you word it properly in your lease agreement.

You can’t collect more than one month’s rent for a for last month’s rent deposit. It would just sort of be prepaid rent so they would prepay the first three, six, nine months worth of rent.

As opposed to where I’ve seen some people try and say you’re prepaying the last three months of rent. That’ll never be allowed under the law because you’re limited to that one month’s rent.

Thank you for reading. Here is another Property Management Q&A that you may enjoy: What is the best lease term for your property?

Also, feel free to contact Real Property Management if you are looking for Toronto Homes for rent: Contact us!

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