It’s important to take the vetting process VERY seriously. Now, in 2022, the Landlord Tenant Board is BROKEN, you will have zero recourse or options if things go bad. It is a really bad time to be renting a property, so respect that you’re taking on a massive risk.
For example, I had a written agreement that made it clear the garage space was mine, when my bad tenant showed his stripes it was like “eff you” and he took it over. Nothing I could do. There was no one that would help. Contracts don’t protect you until, maybe, much much later (if at all). Here’s a list of things I’d do differently. So, vetting. This is the process of making sure that a possible tenant is who they say they are, and that you can depend on them to pay the rent. Today, it’s the only real protection you have from a bad tenant. Here are some of the things I wish I had done before letting my current deadbeat tenant in:
- Pay attention to your gut. Watch how they act around you. Don’t be lazy about things like meeting all the tenants in person. Don’t take an easy-going personality or verbal promises completely at face value. Yes, these are important, but they can be easily faked.
- Get a credit report either from an official source (like an online service) or some other means you can authenticate. Be aware that anything from screenshots or PDFS to other methods of digital delivery can be altered (my tenant did). A true credit report is crucial. Even still, look over the credit report’s details. Sure, they may have a high score, but look into it. Make use of tools like the Landlord Tenant Bureau to get details and report on tenants.
- Get post-dated cheques. This makes the process regular and will at least cause some challenges for the tenant if they decide to not pay you. My tenant is on e-transfer and he just.. stopped. A note: based on RTA s. 108, it is not legal to “require” tenants to give post-dated cheques, as a landlord you are free to request them. Be aware of what they agree and disagree with and note that you are never forced to accept any tenants. Whether or not you do get postdated cheques, be sure to get a void cheque, as it will aid in garnishment later if the tenant refuses to pay rent.
- Get Identification. This seems like a no-brainer, but when you need to verify details about the person, signatures and/or later run a credit report with the person’s birthday, getting a copy of ID such as a driver’s license or a passport is essential during the acceptance phase. If something were to go wrong in the relationship, this identification will help you collect money.
- Google them. And do a deep dive. Look at all the social media. Take this part of the process seriously. If you find nothing, that could be an even bigger red flag. If maintenance is involved on the property make sure you know they can live up to the responsibility (if I had done a deep dive I would have learned my current bad tenant was so sick he wouldn’t have been able to handle the maintenance he promised. The promise was a lie).
- Look at Canlii. Go through it for red flags. Search for previous addresses as well as names. Full names are not included for (I think, 2021 and previous) so be aware of that. Expand your search to all of Canlii for the last name if you have to. Look for anything there that references EVERY one of your new tenants.
- Search Openroom. A relatively new service, Openroom serves to fill the gap between judgments handed down and Canlii’s posting (more than 6 months in some cases). Here, you may find something newer. If you have a new judgement, do post it there.
- Search for previous civil/criminal cases. In Ontario, for example, you can search for previous civil and criminal cases by last name.
- Verify every, EVERY detail offered. Make sure you’re looking for inconsistencies. I wish I had been more thorough in that regard. My bad tenant offered many red flags I didn’t pick up initially because he was so easy to work with. People are generally good, but remember BAD TENANTS are often pros at exploiting you and the system. For example, if you have a previous address, do a drive by to see what condition they’re leaving in. Ask for 12 months of rent payment history and bank statements. Cross reference the two to ensure amount and dates are the same. If they say they paid in cash only, reconsider taking on this tenant.
- Don’t take references as gospel. While it will be important to contact references, understand in this BROKEN environment, one of the only forms of leverage a landlord will have to get a bad tenant out is a good reference. Given this, references may be merely extorted just for an eviction. Keep that in mind and call older references if you can. In fact, if you are speaking to a previous landlord, confirm they are, in fact, owners of that address in the Land Registry. I found a piece of great advice on Reddit from user makineta who says this about landlords trying to avoid giving a reference that might be less than stellar: “I would tell your tenants that you are not the best person to give them a reference. I would encourage them to find someone else. This is how professors avoid giving bad references with grace.”
If the reference is supposed to be a company number, add this number to your contacts and check for a Whatsapp account. If the number resolves to a personal Whatsapp account, it could be your prospective tenant’s friend.
It’s important to know that the Ontario Landlord Tenant Board is not working very hard to update Canlii – keep this in mind. Soon that information recency will improve, but not for a long time.
And sit with your decision. Be sure to meet every tenant multiple times if you have to. If you don’t feel certain, don’t be afraid to hire a property management company. Take the time because once you let them in, you’re mostly helpless right now (if they’re serially bad).
Disclaimer: Kevin Costain is an Ontario Solo landlord. The views and opinions expressed in this article are his and do not necessarily reflect the views or positions of Solo Landlords Inc.
