Your gut instinct will go a long way in keeping you out of hot water, but
don't skimp on the due diligence.
Due Diligence for Landlords
diligence" is simply an investigation of a business or person prior to
signing a contract. Likely, if you own the property that you are
renting out, you've already done a fair share of due diligence. You
have had to check into the zoning, the cost of utilities, taxes and so on.
And now that you own the property and want to rent it out, there is more
care and attention to give. You now need to do your due diligence on
the prospective Tenant that wants to rent your property.
necessary in every situation, conducting a credit check on a prospective
Tenant is a great way to weed out the good Tenants from the bad ones.
Once you find a reasonably priced service and do the paperwork, credit
checks are easy and very valuable. There are several businesses
providing this service and an online search for "rent credit check BC"
recently resulted in these results:
Rent Check -
www.rentcheckcorp.com | TVS -
Thanks to the
Internet, there are a lot of ways to find out about a prospective Tenant
such as through social media and online searches. Reference checks,
and in particular rental reference checks are crucial. Plus,
we have some tips that can help you determine if a Tenant is telling the
truth. Read more about Background and
Reference Checks here.
Run It Like A
rental property like an active business. If you do, you will have
far more success and fewer headaches.
Know The Law
Landlords of one or two properties don't educate themselves well enough
about the provincial laws that govern this type of business transaction.
Get familiar with the BC Residential Tenancy Act, and refer to it often,
even in conversation and in emails with prospective and current Tenants.
SMART LANDLORD TIP
a damage/security deposit unless you
are absolutely in favour of renting your property to that particular
Tenant. When money exchanges hands, whether or not any paperwork has
been signed, you are in a contract with that Tenant.
MORE ON DUE DILIGENCE