Michelle Hopkins
Other
Dennis Hoy has been a landlord for more than three decades. The retired teacher rents out his summer home on the Gulf Islands, as well as two other residences he owns in the Lower Mainland.
“It’s been my way of being an entrepreneur and making extra income,” says Hoy. “I’ve had very few issues with renting out my island home but I’ve had several with the other two homes.”
Hoy tells tales of the renter who skipped out on a month’s rent; the one who let his dog run wild, leaving the home smelling of poop and urine; and another who left the home in such a filthy mess it took him days of professional cleaning services to get it ready for rental again.
So why does he continue to be a landlord?
For Hoy and a lot of Greater Vancouver homeowners, having a rental property or a rental suite in their home is the difference between owning a home and being renters themselves.
Get it on tape
Over the years, the veteran landlord has learned a thing or two about renting, and he has tips for anyone considering leasing out their premises. Hoy says that he does a tour of the premises with the tenant, and videotapes the whole thing, so that if there’s ever a dispute about damage, he has proof.
“I always get the tenants in the video too and I also videotape my expectations of them, such as maintaining the home in the condition they found it in, as well as the grounds,” he adds.
Run it like a business
Tom Durning, of the Tenant Resource and Advocacy Centre (TRAC), has one piece of advice for landlords: “Treat your rental as an active business.”
He constantly reminds landlords that if they deal with their rental property as any other business, they will have far more success and fewer headaches.
“I can’t tell you how often we need to remind landlords that this isn’t a passive business,” says Durning. “Like any business, if you don’t nurture it, it can get costly.”
“More than one-third of our calls come from tenants who tell us that their landlord isn’t maintaining the home,” he says. “If a landlord does the necessary repairs, they can deduct them from their taxes … so I still shake my head and ask why they wouldn’t?”
“I also tell landlords that they can avoid potential rental damage by simply conducting monthly inspections.”
In addition, he says, too often landlords of one or two properties don’t educate themselves well enough about the provincial laws that govern this type of business transaction. His tip: “A good landlord is an educated one; one who knows the rights of his tenants and his own.”
Rental Housing Council president and COO Amy Spencer agrees. She says that most landlords and tenants live up to their rights and responsibilities under the Residential Tenancy Act. However, Spencer recommends that landlords exercise due diligence in screening tenants, such as checking past rental and work references. And visa versa.
“I encourage renters to ask their potential landlords whether they are members of a professional industry association,” she says. “The BC Apartment Owners and Managers Association; Rental Owners and Managers Society of BC and Professional Association of Managing Agents all require their members to adhere to a code of ethics.”
Do your due diligence
In the end, both the prospective renter and landlord need to exercise due diligence before entering into any contract, otherwise it can be a miserable experience for one or both of them
Tips on how to screen potential tenants:
(Courtesy of Rental Housing Council)
- Ask for proof of identity, such as a valid driver’s licence or passport.
- Thoroughly check all references.
- Contact previous landlords. Ensure the person is a past landlord and ask about the tenant’s past rent-payment patterns and suitability as a tenant.
- Check the applicant’s financial suitability through a credit check.
- Confirm the applicant’s income is adequate to make rent payments.
- Ask how many people will be living in the unit and what the names of those people are.
A landlord must not violate a person’s rights when checking for suitability as a tenant.
Sign a contract
A written contract signed by both landlord and tenant ensures that both parties are agreeing to the same set of expectations. The BC government’s Residential Tenancy Agreement is available free online at www.rto.gov.bc.ca/documents/rtb-1.pdf. This six-page document lists everything from the landlord’s pets policy to rent increases, to repairs obligations and policies on overnight guests, as well as much more. By going through it together before signing, you set a businesslike tone to the relationship.
Avoid scammers
Vancouver has the highest rents in Canada for a two-bedroom unit, at $1255 per month. With so much money at stake, scammers like to target the rental market. Be aware of common frauds. Don’t risk losing your money, or even worse, your identity and banking information to a scammer. The Rental Housing Council gave us these examples of common scams.
Scams on landlords
- A tenant provides the landlord with fake ID and fake references. The tenant then provides a cheque for security deposit and first month’s rent, and moves into the suite. The cheque bounces, but by then it is difficult for the landlord to serve notice to evict. The tenant stays in the suite until the landlord can legally evict them.
- A tenant sends the landlord a cheque (usually international) for a few thousand dollars for the security deposit and first month’s rent. They tell the landlord they made a mistake, ask them to cash the cheque and send them the difference. Since the tenant’s cheque was international, it takes several days to go through the bank. By the time the landlord has sent the tenant the difference, the original overpayment cheque bounces.
Scams on tenants
- Someone posing as a landlord posts an ad on Craigslist or Kijiji for a place to rent. They use pictures from another listing or a real estate site. They tell the tenant they can’t show them the suite. The tenant meets the landlord offsite or sends them a cheque. On move-in day the tenant shows up to find the suite doesn’t exist, or is already occupied by someone else. In a recent example, the con-artist listed a suite for rent that was actually for sale. Posing as a Realtor he was able to con the concierge of the building into giving him a key, which he gave to the prospective tenant to view the suite without him. He then met her in a coffee shop across the street to sign the rental agreement, and she paid him $6,000 cash. She found out when it was time to move in that it was a scam.
Where landlords and tenants can go for help:
The BC government has a number of good resources to help ensure a successful tenancy for both landlords and tenants.
- A comprehensive guide is available at: www.rto.gov.bc.ca/documents/Guides/ACT_English.pdf
- A checklist for tenants and landlords to use when they are considering entering into a tenancy agreement: www.rto.gov.bc.ca/documents/Fact%20Sheets/RTB-133.pdf
- A brief guide that outlines rights and responsibilities of both landlords and tenants: www.rto.gov.bc.ca/documents/Fact%20Sheets/RTB-129.pdf
- The Residential Tenancy Agreement: www.rto.gov.bc.ca/documents/rtb-1.pdf
- If a landlord or tenant has any questions they can contact the Residential Tenancy Branch. In the Lower Mainland, the number is 604-660-1020. Elsewhere, call toll free at 1-800-665-8779.
For a free copy of TRAC’s Tenant Survival Guide, visit www.tenants.bc.ca/main/?tenantSurvivalGuide
© 2013 Real Estate Weekly