The Successful

Landlord’s Guide
The Successful Landlord’s Guide

Table of Contents

> A landlord’s responsibilities & rights 3

> Know the tenancy laws in your area 4
> How to resolve tenant disputes 5
> Costly legal mistakes that can sink a landlord business 7
> Tips on being a successful landlord 10
> How to retain tenants & improve your bottom line 12
> What do tenants want? 14
> What is your criteria for prospective tenants? 15
> Education for landlord & tenants 16
> Reporting tenant pay habits reduces income loss 17
> Successful landlord’s checklist 18

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The Successful Landlord’s Guide

A Landlord’s Responsibilities
A Landlord’s main responsibility is to provide a safe and livable dwelling.
The dwelling should include:

1. Weather and waterproofing systems

2. A working plumbing system
3. Hot and cold running water
4. A working heating system
5. A working electrical system
6. No infestations of insects and rodents
7. Sufficient trash cans
8. Floors, stairways and railings in good repair
9. Natural lighting in every room
10. Working windows or proper mechanical ventilation
11. Safe emergency exits
12. Working security locks at main entrance
13. Working security devices on windows
14. Working smoke detectors

A Landlord’s Rights
Every landlord has the right to expect a tenant to follow
the general and legal terms of the tenancy agreement,
as well as tenancy laws that are established by each
province

The following are the most standard legal terms found

in a tenancy agreement:

• Amount of rent, date due and length of rental term

• Maintenance and cleanliness of dwelling
• Respect the rights of neighbors
• Tenant to pay cost of repairs due to neglect or damage
• Limit number of occupants
• Pet policies
• Smoking policies

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ALWAYS conduct Background

Checks, Credit & References
High risk tenants that use landlords as a revolving line of credit are
accomplished at giving a good impression and can fool even the most
experienced landlords. Always ask for references and take time to
follow up on them.

Credit reports are a critical part of the background check process. TVS
specializes in obtaining the most comprehensive credit report in the
industry.

To determine credit and Tenant worthiness, visit us at

www.Tenantverification.com
www.aTenantscreen.com

Know the Tenancy Laws

in Your Area
Many landlords end up paying thousands of dollars in dispute
resolution and court awards in British Columbia and Alberta because
they make the BIG mistake of not having familiarized themselves
with their provincial tenancy laws. This usually happens when the
tenant takes legal action against a landlord who is unaware of his/her
responsibilities. Landlords should be aware that there are tenants
who target landlords who don’t know the law.

It is incumbent upon every landlord to know the tenancy laws so that

liability and risk is minimized and/or completely prevented. There is no
excuse for not knowing your provincial tenancy laws.

Attached is a link to provincial tenancy laws - find your province

and take the time to educate yourself about them. Your landlord
criteria should incorporate these laws so you do not appear to be
discriminatory in any part of your rental process.

http://www.landlordsresourcedirectory.com/AreaLinks.htm
or Google tenancy laws British Columbia or whatever Province
you are looking for.

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How to Resolve Tenant Disputes

A successful landlord will be prepared for disputes that may arise with new tenants.
Being prepared will help you avoid being caught unaware in a stressful dispute.
Instead of immediately going to arbitration or court, there are many other options
inresolving property disputes. You can even state in your tenancy agreement what
stepsyou will take to remedy a dispute.

Here are some tips for handling disputes between landlords and tenants:

1. Avoid Disputes by Knowing the Law

The best way to resolve disputes is by avoiding them before they even
begin. Many problems arise because one party does not know they
have broken the agreement or they are not aware of their rights under
the law. Taking the time to learn the law will help you avoid disputes
and make you a successful landlord.

2. Document Everything
A paper trail is your best defense. If your tenant has repeatedly broken
the rules of your tenancy agreement or if they have made unreasonable
demands thorough documentation can help prove your case. Keep
a file on each tenant and record all that transpires. Presenting this
documentation to your tenant may even dissuade them from taking you
to court or arbitration.

3. Keep Your Cool

When a situation arises never lose your temper, even if your tenant
does. Be as calm as possible and always do your best to take care of
the situation on your own. If you are having difficulty or if your tenant is
not cooperating you may need to seek assistance in court. However,by
keeping your cool, you are representing yourself in the best possible
light and there is less chance the situation will escalate.

4. Talk It Out
Many problems with tenants can be resolved if the issue is discussed
thoroughly by both parties. Do not let your temper flare even if you are
justifiably angry. There may be a simple answer to a problem and both
of you may be blowing it out of proportion. Working it out between two
parties is almost always cheaper and easier in the long term.

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4. Meet Face to Face

If you have traded angry words over the phone with your tenant a face to-
face meeting may help. Hold the meeting in a neutral territory where both
of you will feel safe, such as a coffee shop.

5. Get a Professional Mediator

If you have tried without success to resolve the dispute a professional
mediator may be able to assist you. Many provinces now provide
mediators who are trained to deal with situations that can arise with
rental properties.

6. Let the Lawyers Decide

Many cases can be resolved through a mutual agreement to settle
which is negotiated through lawyers. If you and your tenant are both
represented by a lawyer they may be helpful in setlling the case out of
court.

7. Submit to Arbitration
Arbitration is similar to mediation, but arbitration is binding. An arbitrator
will hear both sides of the case and issue a binding ruling to which you
must adhere. If you are worried you are in the wrong you probably won’t
want to take this step. Instead, own up to the problem and try to settle
with your tenant.

8. Residential Tenancy Branch or Equivalent

In most cases, disputes arising from rental properties fall under the
jurisdiction of the residential tenancy branch or equivalent. This option
is usually cheaper than a higher level court battle and it may be the
quickest alternative to an acceptable solution.

10. Proceeding with Litigation

If you have exhausted all other avenues you may have to take yourcase
to civil or criminal court. The actions of your tenant will dictate your
decision. Make sure that your lawyer is well versed in residential
tenancies law and capable of prosecuting your case successfully. Taking
the time to work through a problem with a tenant may save you time,
money, and effort.

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Costly Legal Mistakes That Can

Sink a Landlord Business
Being a successful landlord requires lots of practical know-how, business
sense,and familiarity with the market. The following is a list of the top nine
mistakesthat can sink your business:

1. Using Generic or Outdated Tenancy Agreement Forms

Most landlords know it’s important to have a written lease or
tenancyagreement, but using the wrong form can get you into big
trouble. Socalled“standard” forms that are sold everywhere probably
aren’t compliant with the laws in your province. If you use a stationery
store agreement that short-cuts tenants’ rights,you could find yourself
at the losingend of a dispute because of an unenforceable clause.
On the other hand,some standard forms actually impose greater
obligations and restrictionson you than your provincial law does.

2. Asking the Wrong Questions During Applicant Screening

Thorough applicant screening is the most important part of your
business. If you choose poorly you’re in for nothing but headaches
with tenants who don’t pay the rent, trash the place, or worse. But
there are limits to what you can ask. Many landlords don’t realize that
even wellmeaning questions (such as asking a disabled person about
his disability or asking if a couple is married) can be illegal forms of
discrimination. If the applicant doesn’t get the rental, even though
your rejection had nothing to do with the offending question, the
disappointed peron now has ammunition for a human rights complaint.

3. Setting Policies that Discriminate Against Families

Even though it is illegal to discriminate against families for over
20 years, many landlord practices are far from family-friendly and
are downright illegal. Excluding families because you feel children
will cause more wear and tear and you prefer a “mature, quiet”
environment is illegal. And while you’re permitted to limit the number
of residents in a unit (in most situations, two occupants per bedroom),
you may not apply that standard differently when dealing with families.

The cost of this mistake can be another trip to your Lawyer’s office or
the Residential Tenancy Branch.

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4. Making Promises That You Don’t Deliver On

It is fine to be enthusiastic about the benefits of your property and it’s
necessary to do so in competitive markets, but understand that your
enthusiastic promises will become binding if applicants rely on them
when deciding to rent. For example, you may have to deliver the goods
if you assure an applicant of a parking space, satellite service, or a new
paint job. A tenant who feels ripped off may legally break the tenancy
agreement or sue you for the difference in value between what he was
promised and what you delivered. Whether the tenant will win is hardly
the point; you’ll have to respond, which will cost time and money.

5. Charging Excessive Late Fees

Late fees can be a powerful tool to motivate tenants to pay the rent
on time. While a higher fee can be a better motivator, some landlords
cross the line by setting fees that bear little resemblance to the actual
damages they suffer when tenants pay late. Courts are increasingly
invalidating excessive late fees that can’t be justified with hard
evidence. You’re better off setting a modest fee that reflects your true
damages and dealing with chronic latepayers with pay-or-quit notices.
Refer to Notice to Tenant form in the TVS website on how to prevent late
fees in the first instance (forms section). The amount of late fees may
be limited by residential tenancy laws.

6. Violating Tenants’ Rights to Privacy

Most provinces have detailed rules on when, for what reasons, and with
how much notice you may enter a tenant’s home. Yet many landlords
stop by unannounced, asking to check things over, perform an on-
thespot repair, or show the place to prospective tenants. Repeated
violations of a tenant’s privacy (or even one outrageous violation)
can excuse a tenant from any further obligations under the tenancy
agreement and may also result in court or tribunal ordered money
damages against the landlord.

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7. Security or Damage Deposits

In provinces that permit the collection of security deposits, the law also
requires they be returned to the tenant at the end of the tenancy, unless
the landlord has a legitamate claim against them and obtains a legal
order that they can retain some or all of the deposit. Claims can range
from unpaid rent or fees to dirty carpets and actual damage beyond
resonable wear and tear. Landlords must ensure they are familar with
the laws in their province regarding collecting, returning or claiming
against deposits. In some provinces, failing to follow the law will result
in a significant penalty being assessed against the landlord.
8. Ignoring Dangerous Conditions In and Around the Dwelling
Landlords in virtually every province are required to offer and maintain
housing that meets basic health and safety standards, such as those
set by provincial and local building codes, health ordinances, and
landlordtenant laws. Refer to landlord responsibilities on page 2. If you
fail to take care of important repairs, deal with environmental hazards,
or respond when your property has become an easy mark for criminals
tenants may break the tenancy agreement and withhold the rent or
make the repair themselves and deduct the expense from the rent.

9. Tenants Breaking Tenancy Agreements

When tenants give short notice or leave early under a fixed term
tenancy agreement, as noted above, landlords cannot unilaterally apply
any deposits to the amount owed. However, tenants will generally be
held responsible for any rent lost by the landlord, ranging from next
month’s rent, to all rent owing for the remainder of the term. Under
Canadian Civil Law, landlords are required to “mitigate” their loss by
taking all reasonable steps to find new tenants as soon as possible.

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Tips on Being a Successful Landlord

The key to being a successful landlord is taking time to pick the best tenants and
keeping the rental property well maintained. If you do not have the time to keep up a
property on your own or if you own several rental properties you can quickly become
overwhelmed. The tips provided below are the most common ways to ensure your
success as a landlord:

1. Get It in Writing
In order to protect your interests and the interests of your tenants get
everything in writing. This means everything from a rental application
to a code of conduct. If a tenant needs to have something fixed in their
dwelling ask them to provide the request in writing in addition to telling
you on the phone or in person. This will help you with your income tax
deductions and create a history for each tenant.

2. Provide a Clean & Secure Residence

Keep the grounds of the property clean and free of debris. This will help
you with property liability and keep your rental property attractive. You
should provide additional safety and security measures and take the
Crime Free Multi Housing Course which is facilitated by your local police
office if available in your area.

3. Pick Your Managers Carefully

If you do not have the time to personally manage your rental proper-
ties you will need to hire a property manager. But your success as a
landlord will hinge on your choice. Make sure to hire the absolute best
company for the job. Let them tell you how they will protect your asset
and ensure that the rent payment is received monthly. Will they conduct
monthly site inspections of the property?

4. Be Insured
Make sure that you have the maximum amount of rental insurance,
property liability insurance, and any other type of insurance that may
be required in your province. This can help protect you from devastating
losses. Remember this is your responsibility!

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5. Make Repairs Promptly

Your tenants deserve to have decent living conditions. In the case of
furnaces and other necessary systems, appliances and fixtures, repairs
simply cannot be put off. Try to imagine yourself in your tenant’s posi-
tion. Could you live without running water for three days? This could
also be considered a breach of the lease agreement on your part and
the Tenant may be able to withhold rent payments and you will have no
recourse.

6. Respect the Privacy of Your Tenants

Adhere to your province’s laws for entry into a rented dwelling. Most
provinces require at least a 24 hour notice before a tenant is required to
allow their landlord to enter their rented dwelling.

7. Do Not Discriminate
Follow the rules of the Human Rights Act in your province when you
screen prospective tenants. A discrimination lawsuit is extremely costly
and completely avoidable. You should know this human rights informa-
tion to avoid discrimination: http://www.unac.org/rights/actguide/
canada.html

8. Have a Well-Drafted Tenancy Agreement

It is imperative that the form of Tenancy Agreement you use with ten-
ants be well-drafted, comply with the law, and protect your interests.

9. Always Be Fair
In addition to avoiding discrimination, strive to treat all of your tenants
fairly and in a reasonable manner. Try to understand their position and
keep in mind how they may perceive your actions. While you may not
be able to get along with everyone, having a good rapport and being
reasonable with your tenants will reduce vacancy problems.

10. Know your Province’s Tenancies Law

http://www.canlaw.com/tenants/tenantinfo.htm

Only you have the true desire to make your landlord

business succeed so take the time to set up a proper
course of action that will reduce income loss that is
generally associated with high risk tenants. Have a look
at the deterrent and incentive forms that TVS has on its
website. They are very beneficial in preventing rental
income loss.

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How to retain tenants and improve

your bottom line
Research shows that the majority of tenant turnover is controllable and that
management’s performance in delivering service plays the primary role in tenancy
agreement renewal decisions. With a move-out costing you $700-$1,200, controllable
turnover cannot be overlooked. Here are some tips from seasoned property managers
on what works to retain your tenants:

1. Spell out incentives in the agreement so tenants have a goal to work

towards. Create tenant incentives like a point system for timely rent
payments that converts to a renewal rebate or a Certificate of Satisfac-
tory Tenancy from the TVS website.

2. Keep the property in good repair and use the common sense and
reasonable methodology to keep tenants happy.

3. Allow some personalization of the unit. Minor modifications such

as offering a choice of wall colors, give tenants a sense of belonging.
Decide ahead of time the range of colors you are willing to consider.
Whatever you find that works!

4. Communicate during the term of the lease. Tenants often feel distant
or alienated once they’ve moved in. Find ways to get in front of them on
a regular basis outside of rent collection. Compliments or a card saying
“Thanks for paying on time. I appreciate it!”

5. Negotiate deals with local vendors for discounts for your tenants
like pizza delivery or movie rentals. Provide them with a list of nearby
amenities if they are new to the area.

6. Offer an incentive each time a tenant offers a viable suggestion.

7. Develop loyalty by ensuring tenant satisfaction.

8. Resident Managers/Property Managers can set up functions to

include fun events. If you have a single unit offer a restaurant certificate
on a birthday or special occasion for your tenant and a guest. Use your
imagination and think of what would work for your business.

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9. Resident managers/Property managers can consider dedicating a

sunny spot for a garden, where tenants can meet and enjoy their envi-
ronment. A shady area where grass doesn’t grow well is a perfect place
for a Zen garden retreat. Add decorative stone and a water feature. At-
tractive spaces can be very low maintenance and a highly effective way
of keeping your tenants happy.

10. Involve tenants in community functions. Publicize a walk/run for

charity and sponsor your team. Give out t-shirts and throw a victory bar-
beque afterwards. Publicize the money your tenants collected for the
local humane society, toy drive or fire department by sending a press
release to the papers. A Maple Ridge BC Apartment Owner does this
and has had amazing feedback from the tenants.

11. Publish a community newsletter/blog. If you have single-family rent-

als provide links to Tenant community websites or to other beneficial
websites.

12. Find out well in advance if the tenant is considering moving out at
the end of the lease term. Give yourself time to consider the tenant’s
options and develop a counter offer. If you cannot convert the tenant
conduct an exit interview so you can find out what would have made
a difference for them. That way, you avoid having the same complaint
from the next tenant. Few if any landlords/managers do this. How do
you know what’s wrong if you don’t ask?

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What Do Tenants Want?

Nothing impacts the renewal likelihood more than how
service requests are handled. The work order process
begins and ends with the office, not the maintenance
staff. How work orders are handled by the office and
their communications with residents regarding such has
a strong relationship with retention.

The top twelve items in ranking order are:

• promptly responding to calls

• promptly responding to emails
• office follow up on completed requests
• office staff is responsive
• office staff is dependable
• office staff is courteous
• office staff is professional
• apartment condition
• apartment appearance
• community safety
• quality of maintenance work
• speed of handling the request

Residents might not notice a “job well done,” but they

certainly remember negative experiences. Thus, the
goal must be to minimize dissatisfaction and to rise to
the occasion and deliver a “remarkable recovery” when
a bad situation arises. We know this to be true from our
own experiences don’t we?

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What are your criterion for prospective tenants?

Credit Worthiness:
To be a successful landlord you will need to determine if a prospective tenants’ credit
history and payment pattern are acceptable and ensure that they meet your criteria.

To establish credit worthiness:

• Obtain a credit report to determine payment patterns and credit worthiness
• Request a T4 or employer pay stub to establish income level
• Request a bank account statement that shows deposits being made every pay day
• Request a letter from employer giving letter of employment and salary status

Tenant Worthiness:
This is different than credit worthiness. Some tenants do not have a good credit
history for various reasons, but they have a good job, stable income and always pay
their rent on time. Tenant worthiness should be a REQUIRED criterian that every
single prospective tenant must meet for occupancy of your rental unit.

To establish tenant worthiness contact the current and (more important) previous landlord(s) and ask
these questions:

• Did the prospective tenant meet all of the terms in the tenancy agreement?
• How many times was rent payment late?
• Was the security deposit returned in full?
• Were there any problems with the tenant?
• What is/was the reason for the tenant leaving?
• Would you rent to this Individual again?

If the tenant has been evicted from a previous tenancy as per landlord inquiries then that probably does not
meet your criteria for tenant worthiness.

Other Criteria to Consider:

• Do you allow pets?
• Smoking policies?
• Occupancy maximum?
• Noise policy?
• Parking policy?

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Education for Landlord & Tenant

In many cases a landlord and tenant can become adversaries when there is a lack of
education regarding rights and responsibilities. This often results in a tenant leaving
the landlord stuck with unpaid rental fees and/or damaged rental property.

A loss of income, stress, hassle and other unpleasant experiences

are the result of many such instances which are unnecessary and
totally avoidable. Of course there are other reasons for discontent
with either one party or the other such as lack of respect, coopera-
tion, cleanliness etc. To minimize or alleviate the possibility for
these unnecessary problems it is incumbent upon the landlord to
educate himself and the tenant.

When both the landlord and the tenant know the rules, play by the
rules and respect the rules the tenant and landlord experience is a
much more pleasant and profitable one.

www.tenantsinfo.com is a website that has been designed for the benefit of both landlord & tenants. It is not
enough for landlord or tenant to just know their own rights and responsibilities; he/she should also know the
rights and responsibilities of the other party. This scenario will likely eliminate many problems in your rental
business.

Encourage your tenant to review this website, stressing that you abide by the laws
and requirements of being a landlord and your tenants are responsible to do the
same, ensuring an effective and amicable relationship during the tenancy.

Education is the path that leads to

being a successful Landlord.

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Reporting tenant pay habits reduces income loss

TVS Tenant Verification Service Inc. one of the premier tenant screening services
in the industry, has developed a program that allows landlords to report tenant pay
habits on a monthly basis. This is important for a number of reasons:

• Major Credit Bureaus do not accept tenant pay habit reports.

• There is no other major repository that reports tenant pay habits.
• Landlords can network via TVS to identify high & low risk tenants by
reporting pay habits.
• Advising a tenant that pay habits are reported to a credit reporting
agency on the 3rd day of each month will reduce the amount of late
payments and the risk of non payment.
• TVS is a credit reporting agency.
• Reporting good pay habits benefits good tenants and reporting late
payments or non payment impacts high risk tenants.
• Many tenants have poor credit histories but they are good tenants
and make rent payments on time,. These tenants can now build a
good tenant history which is important to a landlord when deter-
mining tenant worthiness or conducting tenant background checks.
• When a landlord reports that the tenant has paid on time at the
end of a tenancy period he/she has the option of completing and
presenting a Certificate of Satisfactory Tenancy to the tenant which
can be found in the Forms Section after Sign Up. The tenant can
show this to the future landlord and the satisfactory tenancy can be
verified by TVS.
• Previously there has not been a consequence for high risk tenants
who use landlords as a revolving line of credit; now there is when
landlords report non-payment of rent or a debt resulting from dam-
aged rental property. This is a fraud prevention tool and it serves
to minimize the risk of income loss. In addition to reporting Tenant
pay habits and where the Tenant does leave a Landlord stuck with
unpaid rental fees, you can report the debt to a collection agency
that will pursue the debt for you.
•
In addition to reporting tenant pay habits where the tenant leaves
a landlord stuck with unpaid rental fees, you can report the debt
to a collection agency that will pursue the debt.

find us here www.tenantverification.com

contact us [email protected]
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Successful Landlord’s Checklist

Applicant’s Name Co-Applicant
Completed TVS rental application received on DD MM YR

If Applicant meets landlord criteria based on information contained in the rental application, then conduct
tenant screening as outlined below.
Credit Report Obtained: Yes No
Criminal Record Check Obtained: Yes No
Address Verification Obtained: Yes No
Employment Verified: Yes No How long employed here?
Pay Stub Requested: Yes No bi-weekly income is $
Current Landlord Contacted: DD MM YR Telephone#

Notes from conversation with current landlord:

• Noise problems:
• Paid rent on time: Yes No How many times late:
• Was security deposit refunded? Yes No
• Would Landlord rent to this individual again? Yes No
• Ask for the Landlord’s address to compare to what the applicant put on application and to ensure that it is
a Landlord that you are speaking with and not a friend. A friend likely will give a wrong address, or hesitate
giving you one.

Lease Reviewed with Tenant(s): DD MM YR

Rent & Security Deposit Paid: DD MM YR
Move-In Inspection Form Completed: DD MM YR
Maintenance issues required prior to move in:

Tenant has read and signed Notice to Tenant: DD MM YR

Tenant has been advised of Certificate of Satisfactory Tenancy DD MM YR
Tenant was referred to www.tenantsinfo.com for responsibilities and rights information Yes
Notes:

This checklist is available in the forms section at www.tenantverification.com.

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