Tenants!

OP

St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes

10y

@Mark Forest I wish it was that easy. In Ontario, they never pay you because no application fees are allowed. So credit checks and other costs are all on the landlord with no recompense. You can make money as a landlord in Ontario but it is harder to do so than in some other places.

Mark Forest

Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes

10y

@Stephen E. Wow. That is scary. Soon the federal government will be telling us how much rent we can charge. Here in USA we actually had an admitted socialist in serious contention for the presidency. Soon making a profit will be illegal.

Thomas S.

Member since 2016 · 13k+ posts · 12k+ votes

10y

Our government already does tell us how much rent we can charge, rent control, 2017 we are allowed a 1.5% increase. No landlord in Ontario ever wants a long term tenant, three years max.

The other problem we have is that we can not terminate a tenant, they have a permanent lease for as long as they choose to stay providing they pay their rent and do not cause any extreme problems. Extreme being the key, evictions are nearly impossible. The only plus to our regulations is that it is very easy to insure they pay in full and on time. Otherwise they pay a $170 penalty for every late after midnight on the 1st.

Mark Forest

Real Estate Investor · Fenton, MI · Member since 2008 · 946 posts · 153 votes

10y

The land of the free is no longer that.

Wesley W.

Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes

10y

@Stephen E. Couldn't you ask for a deposit to hold the unit (one month's rent) and then run your credit checks? I make my applicants sign a doc that says if they bawk they owe me pro rated rent for the unit. I also keep showing and marketing the unit until I have a deposit in guaranteed funds.

You'd be surprised (or not) that what prospective tenants will tell you is not always congruent with what they will actually do. To me, their words sound like Charlie Brown's teacher until they give me cash, then it sounds like English. Save yourself some time and aggravation and continue business as usual until they have skin in the game.

Jon Kepler

Real Estate Investor · Owen Sound, Ontario · Member since 2013 · 53 posts · 25 votes

10y

I feel your frustration @Stephen E. We had the sheriff boot someone out this week. Never a dull moment!

Account Closed

San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes

10y

I think karma blessed you when the person who needed their parent to co-sign backed out :-)

3 Reply

OP

St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes

10y

@Wesley W. I am afraid that in Ontario the only deposit you are allowed to take from a tenant is a Last Month's Rent deposit. Typically this has to be collected at lease signing. Tenant expectations and Ontario law are such that if you don't have a signed lease collecting this up front prior to running credit checks is not feasible. Good tenants would walk if you asked for money up front that was out of the ordinary, and claiming Last Month's Rent deposit without a lease would I am sure be seen as a violation if it came under scrutiny.

Having said that credit checks cost $15.86 CAD through the agency that I use so these costs are not onerous in the larger scheme of things. I don't mind paying if they save me from a bad tenant. This case involved two tenants and a guarantor, so three checks, and I approved them. So when they pulled out that was a waste, and a bit frustrating.

@Jon Kepler I have had to evict for illegal acts, and that was no fun. My lawyer subpoenaed a police officer from the drugs squad to testify and we had quite the Law and Order episode. But the tenant moved out without even seeing the board order. He recognised the game was up. The good news is I screen very carefully, maintain good relations with my tenants and have had good luck. No payments of rent later than 2-3 days, and hardly any of those. But that day will come I am sure. Like credit checks, eviction is a cost of doing business.

Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

10y

Changing out a stove just for a bad burner? Have a bucket full of extra burner elements! Next time you are at a metal recycler, grab some! Even buying a new one for $20 would be preferable. Glad you discovered the fire hazard and squalor though.

I haven't gone to a lease signing without first having secured some holding funds. The immediate next step upon approval is to secure holding monies.

I don't run credit until the very end of the screening process, if at all. When they are turning in their app, I always ask what's the worst thing we are going to find when we do a background check and credit check. They'll usually tell you or at least flinch enough to give you an idea. No flinch, no body language will tell you a lot as well.

Tips from the states. Welcome to the wonderful world of landlording @Stephen E.!

2 Reply

Brian Garlington

Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes

10y

@Stephen E. You have a perfect opportunity to start fresh with screening tenants A LOT better. That should help tremendously my friend.

Also, YOU may not be able to collect application fee's but an independent 3rd party like SmartMove.com As part of the "screening" process I tell prospective tenants there is a $35.00 non refundable background check that is done on them from a 3rd party that they submit their information to directly and i email the link to them. If they give pushback on this, then it helps screen them out. If the tenant has "skin in the game" they are less likely to be as "flaky".

Also for the prospective tenant you said was going to have his parents co-sign.....that is a blessing that he backed out.

Hope that helps

OP

St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes

10y

@Steve Vaughan I did not mention that the appliance repair man quoted $120 for what he said could be either the burner or terminal block. I know it is possible to do this yourself but I contract out a lot of these kinds of things. I have a demanding job and it requires my time as well. A relative had just bought a new stove and offered us the old one for free, a lucky coincidence. It was in very good condition and the one in the tenant's unit was aging. It seemed like a good time to change.

I have only taken tenant money at lease signing. Ontario is very sticky about illegal fees and deposits. I try and play things as straight as possible when it comes to the Residential Tenancies Act. I always run credit on each tenant every time because eviction is very difficult and costly here. It can easily take 3-4 months and that would be for a simple case. Some of the most charming ones turn out to have shocking credit, you really have to verify these things. I agree, sometimes there are red flags in body language, but sometimes there are not. Some of the worst are quite accomplished in presenting themselves. I appreciate the welcome but have been doing this for five years now. The original post was written in frustration at a quick succession of crazy tenant acts.

@Brian Garlington I refer you to discussion above regarding the Residential Tenancies Act. There are clauses in the Act that prohibit all fees or deposits other than those expressly approved by the Act. The net effect is that arrangements such as SmartMove would be illegal in Ontario because they would charge tenants what would be held to be an illegal fee even though it is charged by a third party. Nice try.

Regarding quality of screening, see my response to @Jon Kepler above, I have not once had to issue a notice for late payment of rent. Good screening, and good luck. But I know the day is surely coming when we will have to evict someone for nonpayment. It is a cost of doing business that any landlord will encounter sooner or later.

David Dachtera

Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes

10y

@Stephen E.,

So, I take it that that your province's Residential Tenancies Act does not allow lessor's due diligence as "allowed fees"?

OP

St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes

10y

@David Dachtera That's right. You are basically only allowed to charge rent, and rent is regulated under rent control. As I understand it the intention in drafting the Act was to prevent any kind of ancillary charges that might augment rent and get around rent control or in any way add margin for landlords. Hence blanket prohibitions. Essentially you are allowed to charge rent, collect a Last Month's Rent deposit (which you have to get up front as the tenants can refuse to pay it once they are in) and a refundable key deposit which must be the actual replacement cost of the keys. You can make money as a landlord in Ontario, but it is harder than in some other places.

Michael Boyer

Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes

10y

On the ants (if you retain that tenant), the little black or white ant traps sold over the counter can often go under appliances, or use blue tape and you can even tape them underneath or behind your oven, frig, etc. Then they stay put out of sight/mind away from kids or pets.

There are some fairly safe dusts that are basically boric acid (Borax) and a sugar/flour mix. This is effective as long as it stays dry. I have drilled a small hole in the bottom of a cabinet and poured some in then caulked it closed. The ants generally take it back to the colony and this causes a colony to collapse (also works for some breeds of roaches). You can even make your own, roughly 1 part Borax, 10 parts sugar. Mix the dust and put behind cabinets or appliances. Or wet it to a paste, and dip in cotton balls that can be placed in out of the way places..Of course, getting the food sources cleaned up and sealed away is the first step and reminding the tenant of the attractants may be the key. Best of luck.