The process of renting & screening tenants

[88CRX]

I've never done this before and I have been doing a lot of reading online but I'm not really sure the process of showing/screening/etc of the potential tenants.....

My plan is as follows:

- list property
- set up showings to whomever responds
- at showing hold a mini interview and have them complete a application form (similar to the rent fast form but I've added a couple items).
- after I've shown I will verify employment, landlord references, possibly do a credit check (thoughts?) and then select the renter
- once I've selected the renter we complete the lease agreement (does everyone sign it right then a couple weeks prior to move in date?).
- and at what point would they owe first month rent and damage deposit (at time of signing lease or at time of move in date?)

And if anyone has any tips for screening renter post away haha.... thats by far my biggest concern at this point. Would it be unrealistic to ask for photocopies of drivers liscence and a pay stub or letter of employement?

[msommers]

I've only been the tenant so I'll share what I've gone through.

Lease agreement: damage deposit provided and signed everything after I looked at the place and decided to go ahead with it.

References/employment/CC: References and proof of employment is fine but any place indicating they were wanting to do a credit search I didn't bother. My score is near perfect and personally I don't think it's the landlord's business. Plus I didn't want an additional search on my credit history, I try to keep them to an absolute minimum.

Paying rent: My place was kind of unusal as they wanted post dated cheques instead of cash which was a surprise and kind of a pain in the ass. Rent should be paid like any other time, 1st of the month.

So if I came by today, everything checked out for you and I put down a DD, I would be expected to pay Oct 1.

I found it was an owner's market right now, I had a hell of a time finding a place that was listed that wasn't rented out already. Matter of fact, the only place I was able to look at I took. It's a good time to be able to rent out a place if you can, even these absolute shit holes were being rented out when I personally think they weren't even liveable. Some people are desperate I guess.

As for screening people, I can't really say specifically. Find someone that seems mature, takes the viewing seriously etc. Don't forget, they're also going to be judging you too (or at least I was asking plenty of questions about them and the place). Determining if your LL is going to fuck you over or take care of you is a big part of the renting experience.

[spikerS]

I will speak as a renter as well since I just became one again.

As a landlord, please return calls. If I leave a voicemail for you, return it. that was our biggest pet peeve.

We looked at one place, and we liked it, and told the guy we were willing to rent it. Then he made us fill out an application, and told us there were more people coming to look at it, and he would go through all the applications and verify references and such, and call us back on Monday to let us know if we got it or not, and this was a Thursday.

We had no problem with it, but we also didn't stop looking either. As a renter, we were looking for the security. We did not have a sure thing with a month to go before school started. We took a look at another place, and the landlords were very nice, it was a whole house, for $50 a month less. We took the second place, and gave the DD on the spot, and actually signed the lease 2 weeks later.

We then got a call back from the first LL saying we got his place, and I had to tell him that we found another place. He was obviously disappointed, but it was his loss for taking too long. We needed to have the security of a place to live and be moved in before the people I sold my house to took possession.

I say do your due diligence, but do it fast. If you get a good vibe off of potential tenants, collect the DD from them, and check out their application. BUT QUICKLY! If they check out, they sign the lease agreement, if they don't, return the DD, and move on.

[Feruk]

Originally posted by 88CRX
Would it be unrealistic to ask for photocopies of drivers liscence and a pay stub or letter of employement?

Yes it would. What do you POSSIBLY need that for? On your rental application, there is a place for employer's details including phone #. Call it and ask if they're employed there. As for their driver's license, what are you gonna do with that??

[msommers]

I definitely missed that bit. Agree 100% w/ Feruk, what possible reason would you need that (if someone asked me for that, I'd walk).

[88CRX]

Thanks for the replies guy, keep them coming.


Originally posted by Feruk


Yes it would. What do you POSSIBLY need that for? On your rental application, there is a place for employer's details including phone #. Call it and ask if they're employed there. As for their driver's license, what are you gonna do with that??

Confirmation of the persons identity and an additional confirmation that their job is legitimate.

edit: they both seemed to be pretty commonly mentioned online as part of the application process.... maybe not :dunno:

[GTS4tw]

Originally posted by 88CRX
Thanks for the replies guy, keep them coming.



Confirmation of the persons identity and an additional confirmation that their job is legitimate.

Just ask to see some ID when you fill out the forms. You dont need to keep a copy of it, and I have no idea why you would want to. As for pay stub, lol, never had anyone ask for that before to rent a house.

[88CRX]

Also is in normal to pay first month + damage at signing of lease or first + last + damage?

[masoncgy]

Originally posted by msommers
Paying rent: My place was kind of unusal as they wanted post dated cheques instead of cash which was a surprise and kind of a pain in the ass. Rent should be paid like any other time, 1st of the month.

That's not unusual at all, actually. I prefer post-dated cheques in advance because I don't have to bother the tenant or go and collect rent on the 1st of each month, I just drop a cheque in the bank instead, way easier. It also provides a paper trail. Any returned cheques can be traced, etc.

I have used this with my current tenants for years. I also used to do this as a renter. Way easier.

[msommers]

Email money transfer. Get with the times!

[project240]

Pay DD at signing of lease and 1st month rent on the 1st of the month or move in date.

Make sure you have a proper walk through inspection because if you don't you can't legally withhold any of the renter's DD.

[littledan]

When i lockdown a new renter, i require a DD at the time of signing the lease. Then I require first mo's rent on the day they take possesion of the keys.

[88CRX]

Good info, thanks again guys.

Are any landlords doing credit checks?

[masoncgy]

Originally posted by msommers
Email money transfer. Get with the times!

Two things:

1.) I believe you can only do $1,000 maximum on an Interac transfer. My tenants pay much more than that for rent.

2.) It leaves the tenant responsible for sending it on time and there are too many opportunities for it to come late, then the follow up starts, etc. I prefer the cheques because it means I am paid on time every time. The tenant needs to do nothing but ensure that sufficient funds are in the account, far easier.

[msommers]

If that's your preference then I'm not in a position to say otherwise.


Aside: Yesterday (sunday) I was sent a $2,000 email transfer, deposited all within a few minutes of him letting me know it was sent while I was pulled over on the highway. His bank is CIBC. Checked Scotia who I do banking with and it's a $1,000 daily max. Wonder if that's a CIBC thing or he has his limits increased. I know there are daily and weekly limits as well.

[DENZILDON]

With tenants its a hit or a miss even if its recommended by someone you know.

My best advice is to have an agreement in the lease that they pay the utilities but it should be under your name and you just give it to them every time you get it. (epost will be the best way to do this)

I've seen so many landlords get the bad side of it when they get a bad tenant. Example discon during, winter, did not sign up for utilities ends up on the home owners name being billed, etc.

Not paying the invoice is a good sign that you got a bad tenant specially if they are about to do a midnight move out on you.

[Amysicle]

Originally posted by masoncgy
Two things:

1.) I believe you can only do $1,000 maximum on an Interac transfer. My tenants pay much more than that for rent.

2.) It leaves the tenant responsible for sending it on time and there are too many opportunities for it to come late, then the follow up starts, etc. I prefer the cheques because it means I am paid on time every time. The tenant needs to do nothing but ensure that sufficient funds are in the account, far easier. As a renter, I also prefer to give my landlord post-dated cheques for every month of the lease so that I don't have to worry about remembering to send an e-mail transfer or if I'm on vacation, I don't trust online banking over the hotel wireless.

I bank with BMO and the Interact e-transfer is also limited to $1000.

[schurchill39]

I agree with spikers on doing things QUICKLY. My girlfriend and I were looking at 5 or 6 places at one time and some of them weren't going to let us know for a week or two.

We knew within hours of seeing it that we were getting the place we are in now. Signed the lease the next day and gave the equivalent of 1 months rent as a DD. First months rent was paid on the first day we moved in.

I provided ID, place of employment, references and provided them with my previous landlords contact info (interestingly enough they knew him).

I looked at a few places and they wanted pay stubs with proof that my monthly income was 4x monthly rent (or each of us 2x because we were a couple). As soon as they asked for that I thanked them for showing me and walked away. I understand that it was asked out of security for the landlord that I would be able to pay but what I make is no ones business. I had great references and 3 years of living with my previous landlord never missing a single payment. Asking to do a credit check would also make me walk away.

Everything being said though, it is your property and you do what ever you feel comfortable with. However, asking for things like pay stubs and credit checks could really limit the amount of people willing to rent from you.

[spikerS]

Originally posted by schurchill39


I looked at a few places and they wanted pay stubs with proof that my monthly income was 4x monthly rent (or each of us 2x because we were a couple).

I had the same experience. One of the few call backs we got, was from a management company that wanted the same, and a $500 deposit before they even would agree to show the place to us. I walked away and told them to pound sand.

[idriveabox]

Originally posted by 88CRX
Good info, thanks again guys.

Are any landlords doing credit checks?

I found it a pain to get set-up to pull credit checks. Companies like: http://www.creditco.ca/ want mortgage verification, etc. and wasn't worth it for my one rental property. Ask the tenant if they have a recent Equifax report (or skip it if you feel)

Good points here, I would add:
-Ask for ID at the time of application. If the prospect looks good, have them complete and application right then and there. You are asking for ID to verify identity and avoid fraud. No copy needed.

-I ask for pay stubs to accompany the app. How else do you verify what they earn? the employer? If someone called my employer he wouldn't have a clue

-Is it a condo? Don't forget to notify the management co/board of the tenancy and they likely have forms to complete. With that comes - specific move in times/elevator use, ie. locked off and padded etc.

-Pre and post inspection move in forms. These are required and allow you to deduct for damages. Check servicealberta for specific wording that must appear on the forms. The tenant gets copies of the completed forms.

-Damage deposit is held in trust account, keep it separate and retain bank records.

-Also, with the current rental situation favoring landlords, we got a TON of calls when the listing hit Rentfaster. People offered $100 more per month over the phone. I recommend setting up a day (Saturday/Sun) to show to a group of people. We wasted a ton of time with one-off no shows scheduling people in the evenings

[boosted_Z]

With a condo you may want to have an additional deposit for building/garage fobs, as they can be quite pricey. Keep a count of how many you give/get back.

[SuperG3]

I've had one bad tenant and there was about $4500 in damages plus a couple months of utility bills. A credit check probably could have done alot since now I get a bunch of her mail marked "very important" and "final notice".

I found out the hard way, but if you let your utility company know that you are renting the house, they will let you know if the tenant cancels their service. Otherwise when tenants cancel the service, utilities automatically go back to the registered owner without you knowing. Also change your mailing address to where you actually live, as a back up to know you are being billed.

If you have an applicant giving any hint that they are not able to pay on time, move on to the next person. Example: "I've been late once or twice", "can I pay you the damage deposit over the next few months?" or any other thing like that. From experience these type of tenants don't have an extra blanket of cash in case of hard times.

Those that are never late in payment, I found are more responsible and take better care of your house.

I've also had fake references for past landlords. They end up being their friends and making them sound like perfect tenants. If the landlord is the owner of the house, I double check with land titles online for $5 and make sure they're the registered owners. I've caught two applicants that had fake references doing this method. Both times I asked them about it and they admitted they lied about it.

Don't be afraid to wait for the right tenant. 3 of my current tenants have renewed yearly, are always on time for rent, and actually take care of the house. I always tell my tenants to let me know if something is wrong with the house so it can be fixed before it gets worse and causes more damage. It creates a good relationship that things get fixed promptly and that you care about them and the house.

I also have an addendum they sign for no smoking, no alterations to the home without written consent, no more than 3-4 wall hanging per room (had a guy pin 20 hats on the wall), no wall mounted funiture or tv's, repairs to be made by a professional (ie no DIY for damages they caused), tenant must report deficiences on the premises to prevent further damage (ie water leaks, electrical shorts)

[max_boost]

This is what I do.

Ask for a work reference/letter, something to prove proof of employment.

Ask to see their drivers license, just to verify they are who they say they are.

Talk to them. I like to have a firm talking with them just to find out where they are coming from, what their story is etc.

Also you don't need to pull their credit, they can pull their own and just show you their score etc. Usually the score is quite telling IMO.

I take post dated cheques. I make them sign a lease outlining what happens if rent is late or if they decide to move out early, what penalties.

Everything is governed by the Alberta Tenancy Act.

Most importantly, trust your gut, if you have a bad feeling, don't rent to them!

Good luck.

I currently have this tenant, amazing lady but god damn it she bounces checks once every 4-5 months but she would apologize profusely and give me an extra $100 each time. At times her excuses are so out there I think she's cray but she's actually telling the truth. Oh well, she's been there for over 2 years now and takes exceptional care of the property. I guess that makes her OK in my books. :nut:

[88CRX]

Thanks guys.


Originally posted by SuperG3


I also have an addendum they sign for no smoking, no alterations to the home without written consent, no more than 3-4 wall hanging per room (had a guy pin 20 hats on the wall), no wall mounted funiture or tv's, repairs to be made by a professional (ie no DIY for damages they caused), tenant must report deficiences on the premises to prevent further damage (ie water leaks, electrical shorts)

Do you have a digital copy of the addendum?

I have the rentfast lease form and another lease form I got from a friend that is a lot better but super complicated. I'd like to just add a couple items as an addendum to the rentfast lease if possible.

[bleu]

My bf and I are both busy and we have a rental property as an investment. We just hired a company to take care of it for us. They found the renters and are handling everything. Totally hassle free.

They take 10% of the monthly rent for their services and imo its totally worth it.

[thetransporter]

Originally posted by 88CRX
Good info, thanks again guys.

Are any landlords doing credit checks?


thats going a little far... even for some apartments they do not even do that.........

[AE92_TreunoSC]

No one would go for a credit check, it would scare people off. (it did to me when I was a renter)

I'd allow for a credit check if half of the first months rent was knocked off though.

[heavyfuel]

Originally posted by littledan
When i lockdown a new renter, i require a DD at the time of signing the lease. Then I require first mo's rent on the day they take possesion of the keys.

The word "lockdown" and akin attitudes should make a renter RUN if you ask me. I would, if I got a vibe that I was "locked down". The landlord/tenant relationship should be 50/50, so any landlord coming off all high and mighty can shove it. Remember fellow renters we're paying for their lifestyles because the powers that be say we're not good enough to own, so make sure the respect thing is mutual.

[DENZILDON]

Originally posted by SuperG3

I found out the hard way, but if you let your utility company know that you are renting the house, they will let you know if the tenant cancels their service. Otherwise when tenants cancel the service, utilities automatically go back to the registered owner without you knowing. Also change your mailing address to where you actually live, as a back up to know you are being billed.


This is called a landlord agreement. Once a tenant closed their account the landlord is billed automatically. FYI, this will not save the house from being disconnected if they did not pay their bill, only if they cancel their account. Also if you sell the rental property make sure to cancel in written form the landlord agreement. If not, even if you don't own the house anymore it will be put under your name when no one applies for utilities.

[ercchry]

how much are you guys putting in your agreement for a fee for dishonored cheques/late rent?

[88CRX]

Pretty sure mine is $50 fee if a check bounces (which is more than fair IMO) plus a $5/day late fee.

That’s just what was written into the lease agreement I used, I reviewed with the tenant and they agreed that was all fine.

[sillysod]

I've rented out and my brother has probably 20 rental properties around Calgary.

One thing I learned very quickly is that you must go look at their vehicle if they have one. 99% of the time the way they take care of their vehicle is the way they are going to take care of your house.

Old vehicle means nothing, but the condition of the interior means everything. If it is full of crap and filthy inside your house will be the same. If you think about it, as a general rule most of your friends, family etc will be the same.

Clean vehicle, clean house. Dirty vehicle, dirty house.

99% of the time this will work. I've never had tennant problems, but I always kept in touch and if there was any concerns etc I would address it immediately.

[dannie]

^ I was just about to post the same thing.

Here's my process.

I list it and set up appointments for viewing over the course of one day. I schedule them back to back on the half hour and bring my rental applications.

When they arrive, I meet them out front of the house or building and walk right up to their car to meet them. (They end up thinking im just overly nice, but in all reality, it's to check the condition of the vehicle).

Walk them into the house and tell them that I will be in the kitchen when they are done. The quickness and the way they check out the house is quite telling as well. Someone who takes 5 min or less, really doesnt care about the condition of the house and just wants somewhere to live. People who take a bit longer, generally are paying attention to the house and it's condition.

When they get to the kitchen, I do a quick run down of who I am, what I expect, what they can expect from me and how I want the place maintained. I ask if they have questions and if it's a place they wanna rent.

If they do, they fill out the app, show me ID and I ask them to send me a confirmation of employment within the next 24 hours.

After they leave, if they are a potential candidate - Off to the internet I go. I google the hell outta them. If their twitter page and fb is all about getting "fucking trashed" every weekend, they're smoking up on their pics or generally someone that would not fit well with me... I move on.

Once I've decided on someone, I call them within 24 hours of the viewing after checking references and previous landlords. When I do a previous landlord check, i pull a title search to verify that the person Im talking to is the owner. I've had too many people say that someone is the landlord, but it's just a friend.

Providing that all works out, we meet up, sign the lease, I ask for 12 post dated cheques plus the damage deposit. The day they take the keys, we do a complete walk thru of the place, note deficiencies and thats that

[heavyfuel]

Originally posted by dannie


After they leave, if they are a potential candidate - Off to the internet I go. I google the hell outta them.


That works both ways. Renters should screen their potential landlords too. I did.

[stealth]

Anyone have a good rental agreement they can forward me?

[turbotrip]

Originally posted by ercchry
how much are you guys putting in your agreement for a fee for dishonored cheques/late rent?
$50/$50

[The BMW Guy]

Question regarding pets. What are your policies for small/big dogs?
I've always had dogs in my life and none of them seemed to do any damage to our homes...except maybe making smudging the sliding glass doors all the time.

So now that I am about to be a landlord, I'm curious what other people's experiences are with pets? (dogs in particular). I've had several tenants offer me additional deposits for pets but I read you can not have a security deposit greater than 1 months rent, including any pet deposits.

[msommers]

Couple questions for the experienced landlords out there as I'll be renting mine out shortly but it's been a couple years since I went through all this as a renter.

Have a couple people interested in moving in April 1 and they want to come by this weekend to have a look. Have them fill out an application and call them in a day or two if things worked out - the process Sillysod and Dannie mentioned seems like a solid one to follow.

Once I've selected someone, do you sign the lease, collect DD and 12 post-dated cheques April 1 when they're moving in, or any previous day to this, or does it matter? Also I do remember that my damage deposit needed to be cash (which was weird) but is this really required? Do you as a landlord prefer this?

Regarding documents, RentFaster seems like it has everything covered pretty well. The only exception being the lease agreement itself. When comparing to my old lease agreement through Calgary Home Builder's Association, the RF doesn't seem to be as thorough. However I was a tenant using the CHBA form and I can't seem to find it online. Moreover I did some googling and a decent looking agreement can be made on lawdepot.ca

I've read through the read and my previous agreement to get a handle on things for late/NSF cheques etc but one thing that did come up was if a breach of the lease is made or you have to evict someone. Say if someone leaves 6 months into their 1 year lease, what happens? Likewise if you have to evict them? I'm working my way through Tenancy Act but if someone knows offhand that'd be great.

[ercchry]

if they leave early they are on the hook till you can find a replacement tenant

damage deposit and lease signed asap, first month's rent on the first day of the first month

i personally like emt more than post dated cheques

cash, cheque, whatever for damage deposit... if it bounces then you have a few options to deal with it and if it happens before they move in then great, you probably just saved yourself some major headaches if that cant even manage to pay that up :rofl: