Landlord Tenant FAQ
June 6th, 2010
Landlord/ Tenant Frequently Asked Questions
Renting is a part of my job like any other real estate professional. Renting is even more popular in the condo market, where almost 50 percent or more properties are owned by investors. There are many ways that landlords can find tenants, internet sites like Craigslist, Kijiji etc. have become very popular. Local newspaper ads is another way to find tenants. However easy it may sound, finding qualified tenants is a daunting task. Finding good tenants require a lot of time, effort, knowledge and experience. Real estate professionals can help reduce your risk and weed out bad lemons. With an ever growing list of new and existing clientele, I frequently answer some common questions raised everyday by my landlord investors and tenants. In order to make it simpler, and not to answer them each and every time, I thought of putting them on my condo blog. Some of the basic Q&A are as follows. For detailed landlord/ tenant rules, you may visit Landlord Tenant Board site.
What are your renting fees?
The renting fee charged by the listing brokerage on one year lease is standard one month rent plus tax. The tenant pays to the listing brokerage first and last month's rent in advance. After deducting the one month rent and taxes, the balance is paid to the landlord. Listing brokerage will also request tenants on behalf of landlords to provide post dated cheques for the balance term of lease. The listing brokerage lists your property on Realtor.ca (if you choose to) and other websites. This is an all inclusive; no frills fee, that includes marketing the property, arranging showings, pre-qualifying tenants, making an offer to lease, paying tenant brokerage's commission and arranging landlord/ tenant interview, if need be.
How do you pre-qualify tenants?
There are a lot of due diligence steps undertaken to shortlist tenants. These steps include: tenant filling out a rental application form, checking on tenant's credit history, verifying his/ her job, referrals etc. For newcomers or new immigrants, with no job or credit history, the tenants are requested to provide proof of funds available that can convince landlords of regular rental payments. Newcomers are also requested to bring along a good reference letter from their previous bank from the last country of residence. Further, tenants may be asked to provide a guarantor in Canada who has a good credit and job.
What is your role once the lease is signed and do you help with landlord/ tenant issues during the term of the lease?
Once the lease has been signed and the landlord and tenant have met each other, my job ends. I do not deal with landlord/ tenant issues and do not provide property management services at this time. The landlords and tenants deal directly and in case of dispute, should consult with the Landlord Tenant Board.
I can refer landlords to reputed property management companies that will manage their properties, collect rent and deal with legal issues for a fee. These companies can charge anywhere from 6-10% of gross rent.
What terms are included in rental contracts?
The lease contract is made to protect both the landlords and the tenants in accordance with the laws of Ontario. They include issue like who pays for utilities, who takes care of repairs and maintenance, tenants' compliance with bylaws of condominium buildings, insurance of unit and tenants' contents, smoking and pet policy, showing of property to prospective tenants/ buyers nearing end of lease term, rent increase as per rent increase guidelines of Ontario Province etc.
How can landlords evict a tenant?
Landlords can evict a tenant for non payment of rent at any time. Landlords can also evict tenants at the end of their lease term if the landlord wants sell the place, or want the place for their own or his/her immediate family or someone who will provide care services to the landlord or a member of the landlord's immediate family, if the person who will be receiving the care services lives in the same building or complex. Read more.
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Feel free to contact me if you are a landlord or a tenant, looking to avail of my services. As tenants, you will not pay any fees, as the same are paid to my brokerage by the landlords. |
