Congratulations on becoming a landlord! Whether entering the industry completely green or expanding your portfolio, understanding the basics is crucial. This blog post’ll walk you through key elements to kickstart your journey into successful property management.
Understanding Landlord Responsibilities:
As a landlord, certain responsibilities come with the territory. From maintaining a safe and habitable property to handling repairs promptly, grasping these fundamental duties ensures you provide a positive living experience for your tenants.
Property Management Considerations for Landlords:
- You’re a business owner. Your property is your product, and the tenant is your customer. Treat it this way, and you’ll increase the odds of having a positive and successful experience.
- Just like doctors, real estate agents, and financial advisors have governing bodies they report to and whom they’re intimately familiar with, you’re governed by the Residential Tenancy Act. Understanding the laws governing this industry is crucial to a successful experience. Take it seriously!
Rental Agreements 101
A well-drafted lease agreement sets the tone for a smooth landlord-tenant relationship. We’ll delve into the essential components of a lease, addressing everything from rent payment terms to outlining rules and expectations for both parties.
Setting the Rental Payment Date
Establish in advance when the rent is due and the frequency. Some tenants may request a payment structure outside of the traditional once-monthly. Perhaps they prefer a weekly, semi-monthly, or bi-weekly payment that coincides with their pay dates. While a Landlord doesn’t have to concede to these requests, it isn’t unheard of.
PRO-TIP: Do not make regular exceptions to the rule. If rent is due and the tenant asks for an extension, regular extensions may be perceived by the Landlord and Tenant Board as acceptable behaviour. Which filing for eviction due to late payments will be harder to prove.
The Residential Tenancy Act Supercedes Your Rental Agreement
Just because you write something into an offer does not make it binding. In fact, if it contradicts the Residential Tenancy Act (RTA), that clause is automatically void. For example, at the time of this blog, you can’t write that the tenant has to pay additional money if they have a roommate, that they can’t have pets, or that they will pay additional security deposits or monthly fees that aren’t acceptable in the RTA. Well, you can write these things into the agreement, but you can’t enforce them, and doing so will get you in hot water if the Tenant seeks help -and they will!
Navigating Tenant Screening Processes:
Selecting reliable tenants is a critical step in property management. Collecting all of the appropriate identification, credit history, proof of employment, proof of income, and references and knowing how to analyze this data is important.
Assuming the tenant passes the initial review of documents, it’s time to perform an in-person or virtual face-to-face meeting. Conducting an interview effectively will confirm if the information they provided was accurate, and it should leave you with a generally finite opinion or gut feeling on whether they’re a good fit.
Welcome to the dynamic world of property management! This blog is just the beginning of your journey. Stay tuned for more insights as we guide you through the intricacies of successful property ownership.
