In today’s crazy rental market with the vacancy rates near 0% Landlords could be having dozens of conversations with prospective tenants and after that they are likely having to weed though just as many applications to find the right tenant.   From the outside looking in this seems like an easy job, with a wider range of people to choose from we assume Landlords are going to find better tenants but that is not always the case.  Now more than ever it is important for Landlords to maintain a level of due diligence when selecting a tenant and not just pick the person that is offering the most money.  

Keep in mind this is an investment and whether you, as the landlord are focused on the monthly cash flow to supplement your personal income or you are hoping to reap the rewards of a long term real estate investment you need to remember that a bad tenant can significantly jeopardize your goals.  Not all tenants are bad, but the bad ones can be costly and potentially discourage you from long term real estate investing.

So, as a landlord what can you do?  Here are a few helpful hints to get you off on the right foot.

·       Advertise for the tenant that you want, in the add mention things like ‘this is a quiet neighborhood’ or that there is an onsite manager or you as the landlord live in the property.  Setting the expectation early this is not a party house.

·       Always conduct a telephone interview prior to meeting the prospective tenants, ask questions and more importantly record the answers.   If you decide to meet with them ask the same questions and make sure they give you the same answers.  If the answers change, ask yourself are they lying and why.

·       Always make them complete an application form with as many references as possible.   But before you start calling the references, Google them and make sure you are not just calling one of their friends.  Are you really calling their old Landlord?  Maybe ask the Landlord to confirm the postal code of the property.

·       Remember Google is your friend and a great PI.  Check as many sites as possible; Facebook, Twitter, Instagram, LinkedIn, etc. could all provide you an inside look into the tenant’s lifestyle.  Maybe even look up Court Services and see if they have had any appearances in Small Claims Court with past Landlords.  It is public record and free to access.

·       Once you have decided on a suitable applicant and you are ready to move forward, make sure you ask to see some ID when completing the Rental Agreement and that you are dealing with the person you think you are. 

·       Lastly when turning down someone’s application whether it’s because of something you found or simply decided to go with another applicant, NEVER give a reason.  This will only start an argument that no one will win.  Just politely thank them for taking the time to apply and that you have offered it to another person or that you will contact them if you decide to proceed.

Remember your tenant is just as much of an investment as the property itself. Do your homework, be respectful, keep in regular contact; you and your tenant should enjoy a long positive relationship.

For more information on how to be a successful Landlord visit www.landlordbc.ca   Happy Investing!

Chris Can Help.