How Do You Properly Choose Your Tenants?
Renting an apartment to tenants can be a real headache for income property owners! In fact, the Corporation des propriétaires immobiliers du Québec (CORPIQ) recently estimated that 59% of landlords have had problems with at least one tenant due to late payments of three weeks or more.
After all, who wants to deal with constant debt collection, noise complaints, tenant disputes or even pay thousands of dollars in repairs? Read this article to learn how to successfully find the right tenants for your property and avoid a lot of problems.
1. Check the Future Tenant’s File
Fortunately, as a landlord, there are a few things you can do to check the track record of a prospective tenant. To avoid problems, it is best to obtain some personal information, such as:
- A credit check
- References from their previous landlord
- Their file from the Régie du logement du Québec
These steps will enable you to confirm the
financial history of the prospective tenant, including any questionable judgment. CORPIQ’s ProprioEnquête service
can speed up these verifications.
2. Ask for Supporting Documents
In addition to the documents mentioned
above, ask the future tenant for certain supporting documents to confirm their
identity and financial capabilities.
These documents include:
- One or two pieces of photo identification (driver’s license, health insurance card, passport, etc.)
- Proof of employment or income (e.g., pay stub)
- An authorization to conduct a credit check
In any event, make sure that the documents
provided are valid and dated to avoid any unpleasant surprises. You have
doubts? Ask the future tenant to get an endorsement from a relative, which will
minimize the risk of defaulting or contact their employer directly.
Although these preventive measures take
more time, they will save you a lot of trouble.
3. Determine Specific Selection Criteria
The law is very strict when it comes to renting, it prohibits any form of discrimination based on sex, race, religion, disability, or family status, as stipulated in the Charter of Human Rights and Freedoms.
The only three valid reasons for turning down a tenant are:
- Insolvency or poor credit history
- Inability to pay rent due to insufficient income
- Evidence of misconduct
Although you cannot refuse an unemployed
tenant, you can establish criteria that will consider the tenant’s ability to
pay the rent.
Finally, consider including prohibitions for future tenants, such as:
- Smoking and cannabis use
- Keeping pets
Have all these checks been successfully completed? You are ready to sign the lease with confidence! And remember, choosing your tenants is a very important process that will have a direct impact on your property’s operation. The time and energy you invest in the selection process will pay off if your tenants decide to stay in your unit long-term.