Written by: Holly Stringer     Edited by: Mark Amador and Jessica Shin 

Whether purchasing a home or condo to lease or simply renting out your basement, the primary goal of all landlords is to get great tenants. Finding the right individuals to live in your home can sometimes be tricky, but by getting the right information about prospective tenants you can increase your odds of getting A+ tenants. Check out the following 6 ways to help you select the best possible tenants for your property.

 

Get a Credit Report

 

 

Reviewing a prospective tenant’s credit report will help you determine how responsible they have been in the past with regards to paying their debts and honouring their commitments. Popular Canadian companies that offer online credit reports include Equifax and TransUnion. The credit report will provide you with two pieces of information: a Credit score (also called a Beacon or FICO score) and a credit history. Credit scores range from 300 to 900. See the chart below to determine what category a particular credit score falls in. In addition to credit scores, a credit report will also show you a person’s credit history. Here, you will be able to see whether the prospective tenant currently owes any money, has any delinquent accounts, or has a history of late payments. The Government of Ontario has released a publication that will help you to read a credit report - it can be accessed here.

 

Get References….and call them

It is always a good idea to get references from prospective tenants. The best references are professional (a current or previous employer) or landlord references. Make sure that you don’t just get references, but that you also contact them to ensure that prospective tenants are who they say they are. Speaking with prior landlords will help you to ensure that your new tenants have been responsible in the past by paying their rent and taking care of their home.

 

Get an Employment Letter

Having a prospective tenant provide you with an employment letter will not only tell you that they are currently employed, but also how much they make and how long they have worked at this particular job. This information will help you determine whether the tenant can comfortably afford the rent you are charging as well as whether their job is relatively stable. It is also a good idea to search online to confirm the existence of the company and that all the details provided are correct (e.g. address, telephone number, etc.).

 

Have Them Fill out a Rental Application

 

A standard rental application will ask for information like work history, debts and monthly payments, number and type of pets (if any), how many people will be occupying your property, etc. This information can be invaluable when selecting a tenant. To get a copy of a standard rental application, you can contact a real estate professional.

 

Get a Deposit

Once you have selected the tenants, it is a good idea to get a deposit. Know your local laws regarding deposits; for example, in Ontario a landlord can only ask for a deposit that covers first and last months rent. Other deposits are not allowed. In addition, procuring post-dated cheques from your tenant for the entire lease term will make your life easier by preventing you from having to chase them down for rent in the future.

 

Sign a Lease

Once you have followed these steps, always make sure that you sign a lease with your tenants that outlines the terms of the contract and all other important details of what obligations the landlord and the tenant owe each other during the tenancy. You should be able to find a basic standard lease agreement online, but if you are unsure, a real estate professional or lawyer can help.

  

By taking these steps when selecting a tenant for your property, you’ll have a greater chance of getting an excellent tenant; and having a great tenant will make your job as a landlord more profitable and less stressful. In the event that you don’t have the time to take all of the aforementioned steps, consider hiring a real estate salesperson who can aid you in your search for the perfect tenants.

 

 

 

Phone Number: 416-992-7972

Email: info@teamamador.ca

Website: www.teamamador.ca