{"id":8404,"date":"2019-07-11T16:46:47","date_gmt":"2019-07-11T16:46:47","guid":{"rendered":"https:\/\/www.canadianrealestatemagazine.ca\/vetting-vacating-and-everything-in-between\/"},"modified":"2023-10-24T04:07:43","modified_gmt":"2023-10-24T04:07:43","slug":"vetting-vacating-and-everything-in-between","status":"publish","type":"post","link":"https:\/\/www.canadianrealestatemagazine.ca\/expert-advice\/vetting-vacating-and-everything-in-between\/","title":{"rendered":"Vetting, vacating and everything in between"},"content":{"rendered":"

by Valeri Khromov<\/em><\/p>\n

Even if you\u00a0have well-paid, well-behaved tenants settled into all of your properties, the time will come when someone moves\u00a0out\u00a0and you will have to go through the entire process of finding and managing a new tenant again. This is always a stressful time, not only because a month\u2019s rent might be lost,\u00a0but\u00a0also\u00a0because you\u2019re starting over from scratch with new people who may or may not pan out.\u00a0<\/p>\n

I\u2019ve found that by putting a system in place for every stage of the property management process,\u00a0you can cut down on the uncertainty that comes along with new tenants and pave the way for a positive, mutually beneficial relationship.\u00a0\u00a0\u00a0<\/p>\n

Stage 1: Establishing your role\u00a0\u00a0<\/strong><\/p>\n

A lot of\u00a0investors\u00a0don’t pay attention to one core principle of the\u00a0landlord\/tenant relationship:\u00a0There\u00a0has\u00a0to\u00a0be a leader and a follower. These roles are defined at\u00a0the very beginning of the relationship. To manage tenants effectively, the leader has to be the\u00a0landlord.\u00a0A landlord\u00a0sets\u00a0up\u00a0rules, establishes\u00a0the framework for everything that follows\u00a0and fills the dominant position. If\u00a0you\u00a0let tenants dictate the relationship, they\u00a0may\u00a0feel\u00a0like they can\u00a0challenge\u00a0or contradict\u00a0you.\u00a0Once that becomes the case, it’s nearly\u00a0impossible to flip the script.\u00a0<\/p>\n

Another technique that could help\u00a0you\u00a0avoid pressure from tenants is by positioning\u00a0yourself as property manager\u00a0or minor partner\u00a0rather\u00a0than an owner. In doing so, you\u00a0create\u00a0a classic third-party authority who\u00a0enacts\u00a0objective\u00a0final decisions.\u00a0This removes a lot of pressure. You won\u2019t have to make decisions on the spot, won\u2019t be seen as the \u2018bad cop\u2019 and will still be privy to any concerns your tenants might have.\u00a0<\/p>\n

Stage 2: Screening\u00a0potential tenants\u00a0<\/strong><\/p>\n

If your property attracts a high\u00a0volume of prospective tenants,\u00a0or\u00a0if there\u2019s a specific type of tenant you\u2019re looking for,\u00a0it may make sense\u00a0to pre-screen\u00a0over\u00a0the\u00a0phone.\u00a0To avoid any challenges from human rights legislation,\u00a0design some indirect questions that\u00a0will\u00a0help you to know\u00a0your prospects better: What\u2019s your work schedule? Who\u2019s going to live in the unit? Do this\u00a0before booking\u00a0an\u00a0appointment.\u00a0If you\u00a0don\u2019t see\u00a0a\u00a0prospect as\u00a0your future tenant, ask them to\u00a0call back to book a viewing.\u00a0When they do, it\u00a0might just\u00a0happen that your property has already been rented.\u00a0<\/p>\n

It\u2019s always important to do proper due diligence on tenants, no matter how anxious you are to fill a vacancy. A credit check is mandatory,\u00a0as are calls to a tenant\u2019s employer and previous landlords. Google\u00a0the person\u2019s name and\u00a0review\u00a0their\u00a0social media\u00a0activity, too. If your gut is still telling you no,\u00a0it\u2019s better to move on.\u00a0<\/p>\n

You will\u00a0receive applications from people who you don\u2019t want as\u00a0tenants.\u00a0The best way to\u00a0say\u00a0no without\u00a0actually saying\u00a0it\u00a0is to\u00a0say\u00a0that\u00a0the\u00a0owners\u00a0are\u00a0still reviewing applications.\u00a0But if you\u2019ve found your dream\u00a0tenant, act fast to\u00a0sign\u00a0a lease agreement and get a cash\u00a0commitment. Good tenants won’t wait too long,\u00a0and the great ones aren\u2019t going to come along every day.\u00a0<\/p>\n

Stage 3: Maintaining the tenant-landlord relationship\u00a0<\/strong><\/p>\n

The first thing you need to do is\u00a0lay out the rules. Your lease and the\u00a0move-in package\u00a0you devise for your tenants\u00a0will establish the relationship between you and your tenant. Go through both documents with your tenant to ensure there are no misunderstandings and so you can emphasize what\u2019s really important to you as a landlord.\u00a0\u00a0<\/p>\n

A lot of tenants believe it\u2019s\u00a0the\u00a0landlord\u2019s\u00a0responsibility to pick up rent, but many investors\u00a0don\u2019t realize that according the Residential Tenancy Act it\u2019s\u00a0actually\u00a0the\u00a0tenant\u2019s responsibility\u00a0to ensure that rent gets paid.\u00a0To avoid\u00a0chasing\u00a0your tenants down,\u00a0set\u00a0up\u00a0multiple payment options\u00a0\u2013\u00a0cheques, direct deposits to your banking account, email transfers, etc.\u00a0\u2013\u00a0and push\u00a0them to deliver payment on time.\u00a0<\/p>\n

You need to remain professional in every aspect of\u00a0landlording. That means keeping records on any\u00a0bookkeeping\/accounting matters and logs of your tenant interactions. It also means\u00a0keeping\u00a0your emotions in check and handling\u00a0everything in\u00a0a\u00a0business-like\u00a0manner.\u00a0Tenants can be very emotional, but it\u2019s your duty to remain cool-headed.\u00a0Don\u2019t be provoked into regrettable decisions.\u00a0Use the third-party authority trick to avoid direct confrontations\u00a0with them and position yourself as a messenger rather than\u00a0a\u00a0decision-maker.\u00a0<\/p>\n

When it comes to enforcing\u00a0your rules,\u00a0be consistent.\u00a0\u00a0Apply\u00a0the\u00a0same set of rules to everybody and don\u2019t be so strict that you\u00a0infringe on anyone\u2019s rights.\u00a0<\/p>\n

Stage 4:\u00a0Handling a move-out\u00a0<\/strong><\/p>\n

Always be ready to let your tenant go, even if they\u00a0are\u00a0legally bound\u00a0by\u00a0a\u00a0lease agreement.\u00a0If a tenant tries to push you to do something you\u2019re uncomfortable with by\u00a0threatening to\u00a0move out, don\u2019t back down.\u00a0In such cases,\u00a0I always pull out a form for mutual termination of the lease and suggest we\u00a0put in an exact date\u00a0and sign.\u00a0If your tenant\u00a0really\u00a0wants to leave,\u00a0make sure they\u00a0submit the request\u00a0in\u00a0writing and follow through.\u00a0Tenants frequently say\u00a0that they are moving out but, for various reasons, never do.\u00a0\u00a0<\/p>\n

Make sure your tenants who move\u00a0out do their job to clean up and hand over the unit. Even if you\u00a0don\u2019t\u00a0plan to do\u00a0a move-out inspection and take\u00a0the\u00a0keys personally,\u00a0it\u2019s\u00a0always a good idea to\u00a0tell them\u00a0that you\u2019ll be there to take the keys.\u00a0It will encourage\u00a0tenants to clean\u00a0up\u00a0after themselves. You\u00a0can\u00a0always say that something happened\u00a0last minute and ask them\u00a0to\u00a0leave\u00a0the\u00a0keys on\u00a0the counter and lock the\u00a0door from\u00a0the inside.\u00a0<\/p>\n

By following a few of these simple yet\u00a0powerful tips,\u00a0you\u00a0can\u00a0decrease your chances\u00a0of\u00a0ending up in\u00a0uncomfortable situations, making yourself a happier\u00a0landlord\u00a0in the process.\u00a0<\/p>\n

\u00a0<\/p>\n

\"\"<\/strong><\/p>\n

Valeri\u202fKhromov<\/strong>\u202fis a multiple-award-winning\u202freal estate investor and coach with\u00a0more than\u00a010 years of experience managing a portfolio of single and\u202fmulti-family\u202fproperties. He can be contacted at\u202fvaleri@waps.ca.<\/p>\n","protected":false},"excerpt":{"rendered":"

by Valeri Khromov Even if you\u00a0have well-paid, well-behaved tenants settled into all of your properties, the time will come when someone moves\u00a0out\u00a0and you will have to go through the entire process of finding and managing a new tenant again. This is always a stressful time, not only because a month\u2019s rent might be lost,\u00a0but\u00a0also\u00a0because you\u2019re […]<\/p>\n","protected":false},"author":1,"featured_media":21555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8404"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8404"}],"version-history":[{"count":4,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8404\/revisions"}],"predecessor-version":[{"id":26316,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8404\/revisions\/26316"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/21555"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}