Need advice on 1st Tenant

[RandyDalton]

Hi All,

I am brand new to REI and just signed a lease with my first tenant yesterday. I had a couple of questions I would love to receive some advice on?

1) I am in Ontario and requested first and last payable as of yesterday to hold the unit for them. They are moving in Dec 1. They then gave me post dated cheques for Jan 1 through Nov 1, 2009. I thought it was illegal to ask for any damage deposit in Ontario other than last months rent paid early so I gave them back the cheque for November 1 2009. Did I make a mistake? Am I allowed to hold a deposit equivalent to the last months rent and still expect to receive a cheque for the last month?

2) The tenant has asked for a gate to be installed in the backyard. They have 5 kids and it is a safety issue for them to make sure the kids don`t get out to the front and potentially run out onto the road. They have asked for a number of things of which I have agreed to most however I am starting to get a little shell shocked with all the requests and money being spent. We are providing some new blinds, new dishwasher (old one died), and building an office for them in the basement. Should I also install this gate for them or maybe should I start saying no and maybe getting them to pay the costs if it is a issue for them? Your experiences and knowledge is much appreciated.

Regards...Randy Dalton
First Time Real Estate Investor

 

[TodorYordanov]

Hi Randy, congratulations on your new tenants.

On your first question - I collect last month and current month at the signing of the lease. That way you have 2 months worth of rent before they move in. I also collect post dated cheques for the remaining 10 months. In Ontario you can`t force them to give you post dated cheques, you can ask for that, but you can`t enforce it.
If your tenants are being too demanding, you have to draw the line. Whatever you agreed that you were going to improve or build for them before they moved in you have to deliver. But any additional requests are negotiable. You have to be fair and firm, this is a business, treat it as such.

Good luck,

Todor

 

[mocam57]

hi randy. yes, techincally it is illegal to ask for or demand a security/damage deposit. first and last months rent are acceptable practices though and make sure they`re in cash or cert. check/money order/bank draft before handing over the keys. you can ask/request post-dated checks, but cannot demand them either. i usually tell the tenant it`s in their best interest and will save them time and provides a good paper trail for payment for them too.

as for the all the things the tenants are demanding. you`ve got to put your foot down. in the future, write a clause in the lease that says the unit is `as is except for necessary repairs and have them sign off on it.

good luck!

www.tricityrentals.ca

 

[housingrental]

To comment on Mocam57`s post I`d suggest you don`t accept cash as payment for deposit/first or anything else - good tenants generally don`t pay cash and it can lead to disputes as to whats been paid. Require cert. cheque for deposit/first and ask for pd cheques with rent app. I recommend clause on lease along lines of no cash allowed/rent has to be paid by cheque and provided to landlords office for 1st of month/certified cheque/bank draft will be required if any nsf payments.

 

[Thomas Beyer]

QUOTE (RandyDalton @ Nov 9 2008, 07:16 AM) ...

2) The tenant has asked for a gate to be installed in the backyard. They have 5 kids and it is a safety issue for them to make sure the kids don`t get out to the front and potentially run out onto the road. They have asked for a number of things of which I have agreed to most however I am starting to get a little shell shocked with all the requests and money being spent. We are providing some new blinds, new dishwasher (old one died), and building an office for them in the basement. Should I also install this gate for them or maybe should I start saying no and maybe getting them to pay the costs if it is a issue for them? Your experiences and knowledge is much appreciated.
...
You have to do nothing .. unlike a safety issue (such as the rear gate lock) .. but an office ?

Why not agree to a schedule, IF you think that this is prudent business and in line with the rent level:

I`ll do X now, I`ll do Y when you have lived here for 3 months and paid 3 months .. and I`ll do Z when you have lived here and paid 6 months .. be reasonable !

You could also amend the lease to state that they have to do everything up to X $s (say a leaky faucet) if you do X now. Or, you can amend the lease (i.e. to to raise rents to MORE than the prescribed 1.7% in Ontario) if you do Y. NEGOTIATE !!

Keep an eye on the place as 5 kids can do a lot of damage !

 

[SamEfford]

Wow! Do you do their dry cleaning too?

I would fix the gate, dishwasher, etc. But as for building on office in Ontario where the rent increases are fixed, sorry. That is where I would draw the line. As well, unless your lease states that you are providing window coverings, they should be responsible for this.

I like Thomas`s idea (as usual) however if you cant raise the rent to justify the renovations, then you are not investing your money wisely.

 

[ShannonMurree]

QUOTE (RandyDalton @ Nov 9 2008, 09:16 AM) Hi All,
I am brand new to REI and just signed a lease with my first tenant yesterday. I had a couple of questions I would love to receive some advice on?

1) I am in Ontario and requested first and last payable as of yesterday to hold the unit for them. They are moving in Dec 1. They then gave me post dated cheques for Jan 1 through Nov 1, 2009. I thought it was illegal to ask for any damage deposit in Ontario other than last months rent paid early so I gave them back the cheque for November 1 2009. Did I make a mistake? Am I allowed to hold a deposit equivalent to the last months rent and still expect to receive a cheque for the last month?

2) The tenant has asked for a gate to be installed in the backyard. They have 5 kids and it is a safety issue for them to make sure the kids don`t get out to the front and potentially run out onto the road. They have asked for a number of things of which I have agreed to most however I am starting to get a little shell shocked with all the requests and money being spent. We are providing some new blinds, new dishwasher (old one died), and building an office for them in the basement. Should I also install this gate for them or maybe should I start saying no and maybe getting them to pay the costs if it is a issue for them? Your experiences and knowledge is much appreciated.

Regards...Randy Dalton
First Time Real Estate Investor

WOW...if I were a renter...can I rent from you?
No, seriously congratulations on your first purchase and renting. You`re going to learn in your next tenancy situation what NOT to do.
Honestly, you`re setting a precedence and these tenants will take advantage of you every chance they have in my opinion and experience. Tenants will not respect the property that`s not theirs. Now if you install blinds, it`s at your cost to replace when THEY break them. I hope your lease stipulates that this is a one-time shot and if they break, it`s at their own expense. The blinds that you`re providing are a luxury.

Please, please, please stipulate the following clauses in your leases:

Landlord shall provide alterations and improvements as detailed on Schedule " " (make your list and stick to that)
attached hereto, at the Landlord`s own expense, in a good and workmanlike manner prior to the commencement of the lease. Tenant agrees to maintain said appliances in a state of ordinary cleanliness at the Tenant`s cost and expense.

And yes...most importantly here`s a word you need to use more of:

NO