Ontario Landlords Association Membership Helps You Choose Your Tenants Carefully! Landlords in Peterborough lost over $20,000 because they rented to a bad tenant (and didn’t run a credit check!)
Experienced and successful members of the Ontario Landlords Association like to help new landlords by informing them of how important it is to choose the right tenants for your rental property.
One of the most important factors determining whether your rental property is profitable and your landlord career is heading in the right direction is my making sure you put qualified people into your rental house, basement or condo.
After all, there are lots of good tenants out there and you need to find them. These good tenants are looking to find a safe and well-maintained property with a professional landlord to rent from. Renting to great tenants puts you on the path to a profitable and success landlord career.
What Is a Good Tenant?
There are a number of characteristics of people who are a joy to rent to.
1. Good Tenants Treat Your Property With Care
People who care about the property will keep it maintained. If there are any repair issues they will contact you so you can get it fixed fast before it becomes a bigger (and more expensive) problem.
2. Good Tenants Pay the Rent
Getting your rent paid is the engine that drives your landlord success. Evicting tenants in Ontario for not paying rent can take months (or even longer).
3. Good Tenants Pay the Rent on Time
Good tenants make paying the rent a priority. They know they have a business agreement with you and know they are obligated to pay you on time.
4. Good Tenants Follow the Lease They Signed With You
Decent people have self-respect and will honour what they sign. They will follow the things they agreed to and not ‘use the system’.
5. Good Tenants Respect You
You treat your tenants with respect and good tenants will respect you back. They will appreciate you and the investment you made to provide them with a home to live in.
What is a Bad Tenant?
There are also tenants who will not pay rent and leave you with a huge financial mess. These are people who know how to manipulate the Ontario Landlord and Tenant Board and can end up causing you an incredible amount of stress and huge financial losses. We are talking about sleepless nights and emptied bank accounts.
Tenant Leaves Peterborough Landlords With Over $20,000 in Repairs and Unpaid Bills
What happened a couple who are landlords in Peterborough provides a warning for other Ontario landlords.
These landlords were like many of us. They worked hard for years to come up with a down-payment for an income property to help with their future retirement. After buying a nice house in the northern part of the city they couple invested their time, money and energy to make it safe, pretty and well-maintained. Again, like most of us they wanted to rent out a property they would stay in…a property they were proud of.
When they began to advertise the unit for rent they found someone they thought was a ‘nice person’ and whom they had a good ‘gut feeling’ about. They didn’t bother with a credit check or other tenant screening techniques because they ‘felt’ he was going to work out. Fast forward and the tenant left leaving thousands of dollars in damages, unpaid utility bills and huge clean up costs. The property was nearly destroyed!
Remember the couple bought the property to supplement their income during their retirement. The devastation was so severe the wife had to leave retirement and go back to work to help them afford the bill to get the house presentable again. By relying on their ‘gut feeling’ they rented to a tenant who abused both the property and his landlords.
How Can Ontario Landlords Choose Good Tenants?
You need to choose your tenants by screening them carefully. This should always include a credit check on your potential tenants before ever signing a lease and handing over the key.
A credit check will show you not only their financial history (for example, do they pay their bills on time? Do they owe people money? Have they ever walked away from a debt?), it will also confirm things such as identity, employment and past addresses.
For only a low one time registration fee (that’s right, a one-time registration fee, no annual fee) you can get access to premium documents, network with successful residential landlords with millions of dollars in properties in Ontario, and run premium credit checks for a low OLA member price.
It’s a great deal to help you choose good tenants (and avoid the bad tenants who can end up costing you thousands of dollars!)