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  Canada Immigration Forum > About Canada > Real Estate & Mortgages > Landlording Precautions / Tips
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Landlording Precautions / Tips




Hi CDs,

We might be renting a part of our house to prospective tenants.

This will be our first experience.

Would appreciate all the pointers we should keep in mind to be careful landlords and to avoid the common pitfalls.

Basement is not legal and we were thinking of renting to students and new immigrants after verifying their antecedents , IDs , residence status and credit / income check if any .

How should we screen the tenants ?

Should we restrict to desi community only or be indifferent to that?

Should we sign a written lease or be on an oral one ?

How do we clarify that we do not want any kind of substance abuse ?

Should we prefer families or singles ?

Should we give it furnished to singles / unfurnished to families ?

Please share your thoughts as I have found that in addition to what google provides, we get a new perspective on CD.

Thanks in advance.

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Fido.

 
Fido

Senior Desi
Member since: Aug 06
Posts: 5261
Location: Canada

Post ID: 234914 18-05-17 14:20:22
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Blue_Peafowl
Senior Desi
Member since: Dec 08




Posts: 1312
Location: Brampton, Ont, Canada


Fido - if you see there R no complications as well as there are lots of complications :) :) :). So all in all its complicated.

Best solutions: Put Indian students , try to go with girls- problem solved.

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

 
Last edited by: Blue_Peafowl on 20-05-17 22:44:01
Post ID: 234936 20-05-17 22:41:01
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san-hugo
Senior Desi
Member since: Aug 10




Posts: 2001
Location:



Hi Fido

Always sign a written lease even if the basement is not legal.
Ask for the employment letters and pay statements and gauge yourself the stability of jobs and skills of the person before signing the lease. Do not entertain people on EI.
You will get interest from students in case there is nearby educational institute or good transit. Prefer for desi girls students ( boys , desis included may not keep the place clean and will not take collective responsibility of surroundings) , this is my personal experience. I do not care how people react to this.

keep it unfurnished unless there is demand from the tenants.



 
Post ID: 234939 21-05-17 10:42:58
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Fido
Senior Desi
Member since: Aug 06




Posts: 5261
Location: Canada


Thanks a lot BPF & San Hugo.

There are educational institutions nearby and the seller informed me that there's always an interest by students.

Since the house is in a Chinese dominated community and the previous owners were Chinese, there are Chinese girls currently putting up but would be vacating soon.

Due to difference in cultures Chinese and Indians may not gel comfortably when the kitchen is sharing, hence it makes sense to keep only one community people. I will go ahead with your advise and go ahead with Desi girl students or working ladies unless the interest is not enough , in which case I will switch to Chinese gradually since I do not have any issues with them either.

What are the advantages of a signed lease in case of a not-legal basement ? Isn't is more risky than an unsigned one as push comes to shove , one can claim short term accommodation arrangement in the absence of a signed lease ? Or are there some things I am unaware of.


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Fido.

 
Post ID: 234941 21-05-17 13:11:25
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icame
Desi
Member since: May 17




Posts: 86
Location: Devil's Own Country


1. Inform your insurance company about the tenants. You don't want to take a chance. If the house gets damaged or goes up in flames, because of the tenants or boarders, you won't get a penny from them, if you hide the tenants from them.

2. Insist that the tenants take their own tenant insurance policy too. Just as you take one when you rent in an apartment building. Basement apartment is NO different.

3. Iron clad lease agreement. Usually a standard one. But you can add clauses to it as long as its legal. Basically see the lease agreements of big apartment bldgs and make a similar one.

4. And certified cheque for the first and last month. Post dated cheques for the rest of the months. Any bounced check will be charged to them along with any fees. Plus the ability to en cash the cheque at places like Money mart. Nowadays most big apartment bldgs take rent by DIRECT DEPOSIT. You can do the same if you want, with a VOID check and permission from the tenants.

5. 2 pieces of Photo ID and SIN number a must. Check the authenticity of both.

6. Credit check with both Equifax and TransUnion.

7. Latest pay stub. Bank balance letter from the bank with bank manager signature or branch and stamp. Its easy to fake these things, so verify them.

8. Utilities can be included with them paying 1/3 or something like that. Or you can have a separate meter for the basement ( usually only for Hydro ), which they pay.

9. Parking. Make clear if its included or not. And for how many cars.

10. No sub-lease allowed, without your permission. No additional boarders or tenants allowed than the ones on the lease.

11. WORK references. Previous landlord references. These can be faked so be careful.

12. You are allowed to visit the premises occasionally with a prior 24 hr written notice.

13. Anything illegal, means instant eviction like drugs, crime, weed.

14. You can put no smoking, no pets clause. Not sure if its legally enforceable or not. But put it anyways.

15. Take a walk around with them and video tape, photos of the BEFORE and AFTER condition of the apartment. So you have evidence and proof if they lie about any damages and repairs later on. Some of them have a habit of going to the LTB board and filing false cases against the landlord.

16. Keep a strictly landlord and tenant relationship. Be polite, but professional. Don't get too friendly with them or chummy with them. That's when they start taking advantage of you.

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I am a Mens and not a Womens.

 
Post ID: 234944 21-05-17 13:48:17
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Fido
Senior Desi
Member since: Aug 06




Posts: 5261
Location: Canada


Thank You so much icame for the exhaustive list.

The last point being very meaningful.

While I was reading some tips on the internet as well I came across these 2 which were sort of unusual but made sense.

1. Use a google phone number redirected to your voicemail and advise the tenants that you are available for non emergency purposes from 10 to 4 at that number.

2. Tell the tenants that you are a property manager instead of the owner so that when they want something , you are not comfortable with , you can take guard under the property manager cap and tell them that the owner does not approve of it or it is not the owner's policy .

More suggestions / experiences welcome.

In case of working people we can check

a. Pay stubs
b. Bank statement
c. SIN & credit check


But what financial docs should we check with regards to students or new immigrants ?

Bank statements
IDs
What else ?

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Fido.

 
Post ID: 234945 21-05-17 14:02:41
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Blue_Peafowl
Senior Desi
Member since: Dec 08




Posts: 1312
Location: Brampton, Ont, Canada


Fido : send me your personal email.. i will send u lease form , specific for student... very useful
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

 
Post ID: 234947 21-05-17 14:19:28
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Full House
Senior Desi
Member since: Oct 12




Posts: 2215
Location:



Keeping the Common areas as clean as possible.. Such as the Kitchen, the Entrances with in and the Laundry Room and any place that you also use and determine the days and the times also that they should chip in is a must.

The First and the Last is also common in a lease. So, collect the two separate cheques for that and cash them also.

The Common Areas and the Common Kitchen is like a single family unit. I am a little leary about it. Hence a Room Rental enters my mind. You also have control over the stuff within that location or the premise. No MOVING in and out and damaging the walls etc., You might also get in IMMEDIARE occupation, on the spot.

Always include the cost of a lock and a few spare keys that you can always switch with the users, the minute they move out. (Keep your CYLINDERS and the KEYS etc., in a safe location to accomplish all of this)

If they are Students that who are occupying now, ask them where it is that you can post to get students, just as they are leaving. They also know a few that want to enter to keep a 100% occupancy at all times.

Good luck.

FH.

LMC CC MX


 
Last edited by: Full House on 21-05-17 14:35:44
Post ID: 234949 21-05-17 14:33:18
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san-hugo
Senior Desi
Member since: Aug 10




Posts: 2001
Location:


Quote:
Originally posted by Fido



What are the advantages of a signed lease in case of a not-legal basement ? Isn't is more risky than an unsigned one as push comes to shove , one can claim short term accommodation arrangement in the absence of a signed lease ? Or are there some things I am unaware of.



The lease agreement primarily act as a deterrent and an advance notification to the tenant against any unlawful act. Plus it establishes the relationship between the tenant and landlord. There is no risk. After the signing, you do not have to submit or register it anywhere. Also signing the lease process gives you opportunity to check the credentials of the tenant and collect their identity etc. For students, I tend to ask a copy of a letter or correspondence from their education institute they might have received in past providing info about their registration etc so that we have their record , which is another deterrent.

When push comes to shove there are number of other applications you need to sign and submit to LTB - landlord and tenant board (please read through the following link) ,

http://www.sjto.gov.on.ca/ltb/help-for-landlords/

Generally, students who are on student visa and are wanting to be PR in future , stay away from any such trouble and abide by the clauses to keep their record clean.



 
Last edited by: san-hugo on 22-05-17 13:20:41
Post ID: 234959 22-05-17 13:19:10
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icame
Desi
Member since: May 17




Posts: 86
Location: Devil's Own Country


Quote:
Originally posted by Fido

What are the advantages of a signed lease in case of a not-legal basement ? Isn't is more risky than an unsigned one as push comes to shove , one can claim short term accommodation arrangement in the absence of a signed lease ? Or are there some things I am unaware of.



Legal or Non-Legal has nothing to do with the tenant or lease. That's more to do with City By-Laws, House Insurance purpose, Property tax, Fire Code . A totally separate issue.

If you don't have a lease and they don't move out, what are you going to do ? They can claim that they have paid you rent in cash for 1 year and there is nothing you can do to prove otherwise.

They can also say that you forced them to pay rent in cash and YOU didn't want a lease as you didn't want to show that as rental income to the tax man - CRA.

Evicting a bad tenant in GTA is hard enough WITH a lease, so without a lease will be a nightmare.

Be familiar with the Land Tenant Board - LTB and all the processes, documents and forms, beforehand. So any issue comes up, you already know what to do. Be proactive and stay one step ahead of the tenants, so they know you mean business and won't tolerate any Shenanigans.

Come across as a Professional landlord and don't tell them that you are a rookie renting your basement for the first time, they will take advantage of them. Don't divulge too much information about you and the property. Keep it strictly professional and business like.


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I am a Mens and not a Womens.

 
Post ID: 234962 22-05-17 23:42:49
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Contributors:
Blue_Peafowl(3)  Fido(5)  Full House(2)  icame(3)  pendse(1)  san-hugo(2)  
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