Landlords, Run Your Rental Like A Business

#1: Run your rentals like a business.

Even landlords with only one rental should view this investment as a business. Take it seriously, have a process in place for accounting and don’t get too emotionally attached. Be tough on screening and remember you’re doing this to make money.

#2: Market the property online.

List your property online – Rentfaster works for me.

#3: Set the right rent price.

Run a rent comparison report and list your property $100.00 under market value for similar properties. This will ensure your tenants will not keep rental shopping – good long-term tenants are your best friend.

#4: Always screen tenants.

I covered this in my 7 Tips and is very important. Always screen your prospective tenants that will help you choose a qualified tenant and will protect you from facing costly property damage.

#5: Create a city-specific lease.

Make sure your rental agreement is applicable for Calgary and Alberta legislation – copying one from BC or Ontario, can nullify important contract terms and conditions.

#6: Always fill out a condition report.

When a new tenant moves-in, schedule a walkthrough and fill out a condition report and have them sign it. When they move out, fill out the move-out condition report and compare. Anything above normal wear and tear, repair costs may be deductible from their damage deposit – that includes cleaning costs.

#7: Always get things in writing (aka document everything).

The more documentation you have as a landlord, the better. Provide relevant copies to your tenant and your copy in your property file and/or computer.

#8: Don’t collect rent in person.

Arrange for payment by etransfers only due on the 1^st of each month and have direct deposit eliminating security questions and delays. Cheques can take a week to process and extra weeks dealing with NSFs and possible terminations.

More Tips to come.

How does a landlord deal with stuff left by tenants

Most tenants leave something behind they forgot or didn’t bother packing. Stuff can by anything from clothes to food in the fridge to furniture and even vehicles and bicycles to outright disasters with a real mess to deal with – we’ve seen everything (Please refer to my “7 Tips for Landlords” for general information on leasing to new tenants – if you follow that, you’ll have 100% success with your tenants).

There are 4 basic scenarios landlords deal with when tenants leave.

1. Their lease ran out and they gave you notice and were good responsible tenants who cleaned up and get there deposit back in full – rare.
2. Same as above but did not clean up and maybe even caused damage to your property during their term – your costs are deducted from their deposit.
3. They defaulted in their rent, you kicked them out, they left peacefully – #1 or 2 may apply on junk left behind and/or damage.
4. They did the midnight run – usually #2 will apply and you’re left with a costly cleanup and repairs.

Dealing with:

#1 You may only need to do some normal touchups here and there and some wear and tear repairs/replacements – ie: carpet, new paint.

#2 This is where your last month deposit kicks in and hopefully covers the cleanup and/or repairs. You’ll need to go through with your original move-in list with your tenant and note any changes such as damage (not normal wear and tear). There should be a clause that any personal property remaining after official move-out day they forfeit and you dispose – get their signature on this clause. They are responsible for all costs deductible from their deposit – provide receipts for costs and your time and hours – anything over the deposit you cannot recover without civil court.

#3 See #2.

#4 The worst – see #2. They have abandoned and you may be faced with extensive cleanup costing several $1000s in junk removal costs not including your labour. Repairs are on top and often is in the $10,000s.

If you followed my “7 Tips…” you should have #1 tenants and your investment will pay off with long-term responsible tenants and minimal move-out costs.

Dealing with the stuff – just call us at Anytime Bins – we’ll send a crew and bins (see our Junk Removal page) and we’ll get your property cleaned up in 4 to 8 hours in most cases.

Thank you and good luck.

7 Tips For Landlords And Choosing Your Tenants To Avoid Disaster

We get a lot of calls from landlords who need to clean up their property because of tenants who left a mess, hoarded or physical damage and I thought it might be worth doing 7 Tips for Landlords from my own personal successful tenant management program. This will avoid common mistakes landlords make choosing tenants and eliminate the expensive cleaning up and repairing from nightmare tenants that could have been avoided.  

1. Advertising
   1. Price it 10% below market rent – avoids tenants doing value shopping and moving out all the time.
2. Applications – use a professional tenant application form and MUST get:
   1. Official letter from employer on company letterhead, signed and dated stating good standing and number of years employed – less than 2 years ask for previous employer.
   2. Bank letter stating good standing.
   3. Permission to do a credit check – then do it.
   4. Name of present landlord with address, phone number – then call to find out what your prospect was like.
3. Red Flags that warrant rejecting the application:
   1. Unwilling to provide requested information.
   2. Telling you they will move in NOW with cash.
4. Sorting through applications:
   1. Choose the 3 best applicants
   2. Arrange to visit them at their current home to see their housekeeping standards. If they refuse, reject their application.
   3. When you arrive ask to see their driver licence to verify this is their actual current home – for couples, both should provide driver licence with same address – if they refuse, reject them and leave.
   4. They may charm you, but this is business – get past that and be rational – use your Spidey senses – do you want them as tenants.
5. Signing the lease.
   1. Make sure you use a professional lease.
6. Collecting rent – make sure your prospect understands the following and which should be in the lease:
   1. Etransfer by the 1^st – not a minute later.
   2. Day 2 file an eviction notice – this is an important legal step.
   3. Know the landlord tenant act inside out.
7. Inspections:
   1. Inspect weekly during the 1^st month even just a drive-by – are they behaving or signs of property abuse starting.
   2. After one month do monthly furnace filter checks (and inspections) – Are they living like decent human beings or are they slowly turning your home into a landfill site inside and out.
   3. After 6 months you will know they are good tenants or not.

Your property is an investment that can be destroyed less than a year and cost you $10,000 or more to cleanup and repair.

Remember, being a landlord is a business – keep your tenant relations professional and don’t get “emotionalled” when you have to turf them out.

Use my 7 Tips and you will be a happy landlord.

Thank you and good luck.