8 Tips For The Do-It-Yourself Landlord
- Gwendolyn L. Adrian, Adrian Law
- Oct 12, 2015
- 3 min read
Owning a rental property can be a good source of income. In theory, you purchase the property, find a tenant and sit back while the rental payments pay off the mortgage and provide and an income stream. This dream of easy income can quickly become a nightmare with the wrong tenant. Failure to pay rent or prevent property damage can quickly erode income leaving the landlord frustrated and broke. The following tips will assist the landlord in keeping the dream of income from becoming a nightmare:
Conduct a background check on potential tenants. Ask for references and call them to ascertain whether the reference is a friend. Ask for employment contact information including former employers. Conduct a credit check or a review at tenantverification.com. Be alert for any red flags such as frequent moves, frequent changes in employment or bad credit history. When in doubt, or if dealing with new immigrants or students who do not have credit history, ask for a guarantor. Conduct a credit check on the guarantor. An ounce of prevention is worth a pound of cure so be thorough at the early stage.
Be diligent and act promptly at the first sign of problems. For example, if a tenant is late with payment of rent and promises to pay, do not simply accept the proffered excuse without action. Start the eviction proceedings with the Landlord Tenant Board ("LTB") and advise the tenant that when they make the rental payment the eviction process will be terminated. Doing so, places you in the queue at the LTB and prevents further delays if the tenant fails to live up to the promises given.
Use common sense. The tenant who proactively calls you to advise that rent will be late is less likely to be trying to avoid payment. Similarly, a long-term tenant with a good record of payment is unlikely trying to avoid payment. Work with a good tenant to keep them happy and, well, YOUR tenant and not someone else's tenant.
Keep meticulous records and make sure that you are filling in the correct forms for any applications going to the LTB. Failure to complete the correct paperwork sends you back to the end of the queue. Keep track of every visit, phone call, attempted phone call, complaint or communication including dates, times and how the communication occurred. Keep track of follow up communications and attempts to resolve issues and complaints. Making and keeping precise records of communications between you and your tenant will reduce miscommunication and provide the factual basis for resolution before the LTB.
Keep your cool. Never write or communicate while angry. Be prepared to apologize for any communications in which you lose control.
Practice patience when dealing with the LTB. A full eviction can take up to ten weeks and delays will occur if incorrect forms are used or served upon the tenant improperly. While being patient, continue to be diligent about following up immediately to any notices from the tenant or from the LTB.
Do not delay in seeking legal help if and when matters escalate. If you begin to feel overwhelmed, it is prudent to retain assistance or to acquire the necessary information from a professional.
Be prepared to walk away from a loss. Even the most careful landlords may rent to a bad tenant. If that happens, be prepared to write some or all of the lost rent off as a business loss. Remember that even if you obtain a judgement against a deadbeat tenant, you may not be able to collect the lost rent if they lack assets or are not employed. Consider carefully whether pursuit of the lost revenue is likely to succeed.
A little planning and diligence can allow your dream of additional income from becoming a nightmare. Good luck.
The content and the opinions expressed here is informational purposes only and does not constitute legal or professional advice. Nor does reading or commenting on it create a lawyer/client relationship with the author. I encourage you to contact me directly at adrianlawoffice@gmail.com if you have specific legal questions or concerns.
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