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 70 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 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 and tenant interview.
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 provide property management services?
I can offer a la carte propety management services to landlords. I can also refer landlords to reputed full time property management companies. These companies charge anywhere from 8-10% of gross rent.
What terms are included in rental contracts?
The lease contract is made to protect both the landlords and tenants in accordance with the laws of Ontario. They include rules regarding utilities payment, repair, maintenance, condominium by-laws, insurance, smoking, pet policy etc. It also covers topics such as showing of property at end of lease term and rent increase.
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.
Feel free to contact me if you are a landlord or a tenant, looking to avail of my landlord services. As tenants, you will not pay any fees, as the same are paid to my brokerage by the landlords.