Renting Advice (As a Landlord)

[Skyline_Addict]

I live in and own my current 3 bedroom bungalow, with 2 of the bedrooms in the basement. I live by myself.

I'm looking at the possibility of renting out 1 or 2 of the rooms in the basement while still living there. The extra income would be really nice and with the right renters, could actually be fun.

I've done some reading on websites and the like to get information on legalities, tips, etc. I can't seem to find much besides some general information or a link to buy a book. I am completely new when it comes to renting/landlording.

What I'm looking for is some advice on the best ways to find and/or screen renters. I figure that asking friends to ask their friends and so on would be a viable option as you would normally trust your friends to recommend someone who they know is already responsible. Or even having a friend rent?

I'm also more inclined to find renters who are looking for no-longer than a 1 year lease or even a 6 month lease with some option to extend. Is it hard to find such renters? I feel this option would be good as I wouldn't be in too much of a bind if renting out my basement just "isn't for me".

I would also prefer to be very picky on who rents, as I will still be living at the property and while the extra money would be nice, it's not need for paying for a mortgage that I can't afford otherwise or anything like that. In my mind the ideal renters would be in s similar demographic as me. Young people who are just starting their professional careers and have a responsible and amicable demeanor about them. You know, the kind of person who isn't that "weird guy" who stays in his room all the time doing who knows what.

Advice/Thoughts?

Thanks

[lint]

I grabbed this from an article in the herald a little while back. I didn't grab the link though


Successfully investing in residential real estate usually involves having tenants that you can count on. Although The Alberta Landlord Tenant Act -http://www.landlordandtenant.org has been put in place to help protect both landlords and tenants, the key is finding great renters in advance to help prevent the need for dispute resolution and/or damages.

Two of the most common questions that we ask ourselves as landlords are: Will we get paid on time? And will the tenants take care not to damage the property? Here are a few key things you can request in order to help increase your odds on both fronts:

A Copy of Their Driver’s License – I have had more than one rental situation go bad. In these cases, a gentle reminder that I had copies of their ID prevented the situation from escalating.

Entire Security Deposit and First Month’s Rent – This is at the moment of signing the lease. If they cannot afford it because they have not received their previous damage deposit, then take note that paying the rent in the long-term may be tight for them.

Post Dated Cheques – People who do not have chequing accounts typically do not have credit. I have accepted a bank draft for the deposit and first months rent in the past, but only while the cheques are on order. Do not accept cash.

Proof of Employment - I shy away from self employed people. I have had many people with seasonal work run into rent issues during slow periods in their field. I want to know where they work, when they work, the phone number and I also want two recent pay stubs. If everything else is in order, try to determine how long they have been self employed and ensure they have a good track record (a credit check my help in this case).

No Pets - No compromising on this one. The security deposit is not enough to cover flooring replacement due to stains, claw damage or water damage because of a leaky aquarium.

Friend them on Facebook – During the application phase and tenancy, insist they add you as a friend on Facebook. I have been friends with almost all my tenants and in addition to creating a bit of goodwill, this is a great way to find out the type of lifestyle they live.

Everyone has a unique situation, and everyone has a story about why they have come upon hardships and cannot pay on time. As a landlord, I have learned that in the cases where I get all of the above items “checked off”, I get much more secure, trust worthy tenants in the end. Make this part of your standard rental practice and enjoy the fruits of positive cash flow, long-term appreciation and building equity in your investment.

[kenny]

In general the Landlord/Tenant laws in Alberta favor the tenant. If you have a trouble tenant, it'll be a huge headache for you.

Good ways to avoid the trouble ones are to request all tenants to agree to a credit check (don't even have to do one, the bad tenants filter themselves out). You can also ask them to provide a letter from their previous landlord (or at least their contact information so you can call them for reference check).

In terms of finding short term renters I find its actually easier now as many are looking to rent "temporarily" because they plan on buying a house soon.

Finally, don't rent to friends or anyone you may become friends with. Never ends well :)

[Skyline_Addict]

Thanks for tips.

Where are the best (preferrably free) places or sites to advertise in Calgary?

[dirtsniffer]

If I had a landlord insist on adding me on facebook I would never rent from them. everything else lint posted seems pretty much like what I've always delt with. except the pay stubs, employement info and contact has been the norm. oh and paying damage deposit at time of lease sure, but the first months rent doesnt get paid until the first day of tenancy

[Euro838]

Originally posted by Skyline_Addict
Where are the best (preferrably free) places or sites to advertise in Calgary?

Beyond :bigpimp:

[guessboi]

Nice I did all those Tips + on renewal this year I asked her to get tenant insurance...and so she did from me.

[Toma]

Originally posted by lint
Successfully investing in residential real estate usually involves having tenants that you can count on. Although The Alberta Landlord Tenant Act -http://www.landlordandtenant.org has been put in place to help protect both landlords and tenants, the key is finding great renters in advance to help prevent the need for dispute resolution and/or damages.

Two of the most common questions that we ask ourselves as landlords are: Will we get paid on time? And will the tenants take care not to damage the property? Here are a few key things you can request in order to help increase your odds on both fronts:

A Copy of Their Driver’s License – I have had more than one rental situation go bad. In these cases, a gentle reminder that I had copies of their ID prevented the situation from escalating.

Entire Security Deposit and First Month’s Rent – This is at the moment of signing the lease. If they cannot afford it because they have not received their previous damage deposit, then take note that paying the rent in the long-term may be tight for them.

Post Dated Cheques – People who do not have chequing accounts typically do not have credit. I have accepted a bank draft for the deposit and first months rent in the past, but only while the cheques are on order. Do not accept cash.

Proof of Employment - I shy away from self employed people. I have had many people with seasonal work run into rent issues during slow periods in their field. I want to know where they work, when they work, the phone number and I also want two recent pay stubs. If everything else is in order, try to determine how long they have been self employed and ensure they have a good track record (a credit check my help in this case).

No Pets - No compromising on this one. The security deposit is not enough to cover flooring replacement due to stains, claw damage or water damage because of a leaky aquarium.

Friend them on Facebook – During the application phase and tenancy, insist they add you as a friend on Facebook. I have been friends with almost all my tenants and in addition to creating a bit of goodwill, this is a great way to find out the type of lifestyle they live.

Everyone has a unique situation, and everyone has a story about why they have come upon hardships and cannot pay on time. As a landlord, I have learned that in the cases where I get all of the above items “checked off”, I get much more secure, trust worthy tenants in the end. Make this part of your standard rental practice and enjoy the fruits of positive cash flow, long-term appreciation and building equity in your investment.


EXCELLENT!

Especially No pets, no "self employed".

Don't be shy asking for paycheck stubs or statements.

It is such a HASSLE getting rid of tenants "legally" in Alberta. There are "illegal" ways you can do it, but it's stressful.

But there are some creative ways to keep Landlord/Tenant from applying. It's a hassle, but in the long run, I think it might be worth it.

Then again, I have had dream tenants who clean, maintain, and love their home, and pay rent on time for years....

Fun stuff, sometimes a stressful way to get ahead.

[Toma]

Originally posted by Skyline_Addict
Thanks for tips.

Where are the best (preferrably free) places or sites to advertise in Calgary?
Kijiji

[Sugarphreak]

...

[masoncgy]

Kijiji... has always delivered. Calgarians use this site more than anything else for classifieds... so it's the best place to post your ads.

The current couple who rent my house in Temple came from Kijiji and they have been awesome tenants for almost 4 years now... playing on staying for a few more at least too.

[JBreaks]

#1 Have a proper fully executed tenancy agreement along with a copy of the drivers license.

Without doubt.. its the only protection you have.