4 Screening Tips to Minimize the Risk of Renting to Problematic Tenants in Ontario
If you’re a landlord, it’s important to find tenants that you can trust and who will take care of your property. To minimize the risk of approving tenants who might be disruptive, a thorough and methodical screening process is important.
In this blog post, we’ll explore the characteristics of a quality tenant and offer 4 steps that every landlord should follow when screening applicants.
Why You Need Good Tenants
Finding a great tenant matters more than just filling an empty unit. Sure, an empty place can cost you money, but a troublesome tenant can lead to much bigger losses from damage and rent they don’t pay.
These kinds of tenants often know the legal tricks to stay without paying, and once they’re in, evicting them and restoring the suite can be costly and time-consuming.
The second you hand over the keys to a tenant in Ontario, you let go of many of your rights. The only point of escalation to help you resolve issues is the Landlord & Tenant Board, which currently has an average wait time of 8-10 months. So, best to avoid that whenever possible.
What Makes a Good Tenant?
A good tenant is someone who consistently pays rent on time, takes good care of the rental property, communicates effectively with you, complies with lease terms, and behaves respectfully towards neighbors.
Here Are Our 4 Tips for Successfully Screening Your Future Tenants
1. Write a Clear and Specific Ad
Your rental ad is the first line of defense against problematic tenants. It’s crucial to draft your ad with specific criteria that facilitate an initial screening process, effectively narrowing down the pool of potential renters to those who meet your standards. Some examples:
- Credit check required: This signals to potential tenants that financial reliability is non-negotiable.
- Landlord and professional references required: By asking for references, you’re looking for a pattern of responsible tenancy and professional behavior.
- No pets: This clause can reduce the risk of property damage and issues related to pet ownership.
- No smoking: A no-smoking policy helps maintain the property’s condition and ensures a cleaner living environment.
- No exceptions: This statement reinforces the importance of adhering to the listed criteria, deterring those who might hope for leniency in your screening process.
2. Conduct Thorough Phone Interviews
During the initial phone call, ask open-ended questions and allow the prospective tenant to talk freely. People often reveal more than they intend to if you give them the space. Here are some questions to consider:
- “Tell me why you’d like to move to this area.”
- “Why are you moving out of your current place?”
- “Tell me about your current landlord.”
- “What can I expect to see when I pull a full credit report?”
These questions help you gauge their honesty and reliability. Confirm whether they have pets or smoke, as this can often reveal if they ignored your ad’s stipulations.
3. The Property Showing
When showing the property, continue asking open-ended questions. It’ll help you get to know the applicant and understand whether or not they’re the right fit.
4. Credit Check and References
This step is crucial! For a credit check, you can use services like Equifax to check their credit score. Low scores can indicate an elevated risk of default or late payment.
Also make sure to call all provided references, including previous landlords and employers. Ask detailed questions about their payment history, behaviour, and reliability.
- Watch for Warning Signals: Tenants who have been to the LTB might know ways to use rules to their advantage and make things tough for landlords. Avoid these tenants to prevent stress and financial loss.
Bonus Tips
- Verify Employment Details: Contact the business directly to verify employment details. This ensures that the employment information provided is accurate.
- Verify References’ Credibility: Look up references on Google or Facebook to see if they are genuine. This might show you if any references are made up.
- Ask the Right Questions: Now is the time to ask anything big or that matters to you. By asking lots, you figure out if someone is right for your place.
Tenant Screening Toolbox
Here’s a list of tools that landlords can use to effectively screen and evaluate potential tenants.
Services Available: Advertising/listing, Tenant Screening, Rent Payments, Lease Signing.
Services Available: Advertising/listing, Rental Forms, Credit and Background checks, free “For Rent” signs.
Discover more listings platforms here: Where to list your rental property in 2024 – Toronto and GTA
Services Available: Credit Checks.
Services Available: Long-form Credit Report, Credit Score, Background Check, Criminal Record, Public Document Scan, Landlord Verified Tenant Record.
Description: For landlords preferring a hassle-free approach, LandLord Rental & Property Management handles all aspects of tenant screening and property management.
Services Available: Advertising/listing, Online Rental Application, Property Showing, Pre-screening and Screening, Background Check (Credit check, Income and Employment verification, Public Record Search, Previous landlord references), Leasing, Key Exchange, Tenant Move-in Inspection + Reports, Rent Collection, and Rental Management (tenancy management, repairs, maintenance, etc.) + Online Portal.
Conclusion
By following these steps and being diligent in your screening process, you can protect your investment and ensure a smooth tenancy. Always adhere to human rights guidelines and avoid discrimination in any form during your tenant screening process.
If you’d rather leave this task to professionals, contact us today. With extensive experience screening thousands of tenants each year, we can expertly identify potential red flags and ensure you find the best tenants for your property.
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