First time investors are particularly emotional about finding a tenant who will take care of their valuable property. I have worked with clients who are first time landlords, renting out their Toronto rental property for the first time. Although modern tenants with high standards like to find a rental that makes them feel at home, to them, the property is just a temporary place to live.
Why you need to hire a real estate professional to find the right tenant for your rental listing?
A Rental Application package can be complex. A licensed real estate agent understands the screening process of finding the most qualified tenant for you, as well inserting the related clauses in the Lease Agreement outside the jurisdiction ofOntario Residential Tenancies Act to best protect you as a Landlord. However, different types of tenants may require different supporting documents to help you best assess your decision. In additional to filling out the standard Lease Agreement and Rental Application, Landlords should request additional supporting documents to determine the tenant's worthiness.
Types of Renters and what recommended supporting documents to ask for:
Canadian Residents - Credit reports, pay stub, employment letter on original company letter head stating salary, recent references from landlords or employers, criminal record check, drivers license or passport verification
Self Employed Canadian Residents - Bank guarantee letter or a local guarantor, credit reports, references from previous landlords, criminal record check, drivers license or passport verification
Recently arrived Canadians - According to Statistics Canada, over 260,000 immigrants come to Canada each year. 30% of the new comers choose to live in the GTA. These individuals will either need to purchase a home, or rent a property to live in. Landlords can request from these prospective applicants a bank guarantee letter, employment letter stating salary, employer reference, guarantor, criminal check, drivers license or passport verification.
Non-Canadian Residents [student or work visa] - Passport document copy, bank guarantee letter, letter of employment stating term of employment and salary, work visa, criminal check
Students - University or College letter that states how long the student has been registered at the school with a student number, Student Visa, a local guarantor, proof of source of funds for rent payment, drivers license or passport verification, any references from previous landlords
Landlords should be aware that under the Canadian Human Rights Legislation, it is a violation to refuse a credit-worthy tenant 's rental application base on race, religion, age, gender, marital and family status, disability, and pardoned conviction.
If you are looking to work with a reliable real estate team to help you lease your property at the best market rate and find a credit worthy tenant, get in touch with us. We'd love to help!
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