Need advice on rental lease

[AminMurji]

I need some advice on signing a rental lease with a tenant. Should I be going for a 1 year or 6 month lease? Or is it better to go month-to-month? I have heard that tenants have been able to break the lease and it is almost impossible to go after them.

 

[bizaro86]

I prefer one year leases, but have gone with 6 month leases for people I thought would be good tenants. **I'm assuming you're in Alberta, this only applies in Alberta, and I think you mentioned you were here in another post**



I collect a security deposit equal to one months rent, which gives you some leverage on enforcing the term of the lease. For example, if a tenant does a "midnight move" and you keep the deposit, you should be able to get a new tenant before the one month is up, resulting in no vacancy loss. (Of course, if anything is damaged the deposit could go to that as well, but it helps with their motivation to stay as well, since they want their deposit back)



The biggest advantage to the landlord from a longer lease is that you don't have the hassle, expense, and risk of vacancy associated with trying to find new tenants as often. It doesn't restrict your rent anyway, since increases are allowed in Alberta only once per year.



Regards,



Michael

 

[Mike Milovick]

Go with a twelve month lease. Regarding hearing "that tenants have been able to break the lease and it is almost impossible to go after them" is complete nonsense. Even in Ontario.



If you have a concern about tenants breaking leases, you need to evaluate your underwriting procedures. Do they not have a job? Do they have a co-signer if they do not qualify? How long have they lived at their previous residence? What has their past landlords said (i.e. not current, but previous to current).



If you are concerned about tenant candidate quality, don't rent it. A good tenant will be trackable - and won't break the lease in the first place.



I deal with students - typically the most transient type of renter. We have a good underwriting system and pretty much zero default on financial obligations. Where there has been default, we have collected - every single time.



Mike

 

[beggs12]

Hi Mike,



Just read your post re: delinquent tenants who break leases. You mentioned at the bottom of your post (quote): "Where there has been default, we have collected every single time".... I'd be interested in hearing more about your experience with collecting and how you've gone about it. I'm currently dealing with a situation where a tenant abandoned my suite in the last two days, and still had until August 31 on her lease. On top of this, she also left the suite quite damaged. It sounds like you've encountered similar situations....how have you gone about handling it and collecting?



Thanks,

Shane

 

[Thomas Beyer]

[quote user=beggs12] about handling it and collecting?


hard to collect .. consider taking credit card then it is easier to enforce !!

 

[invst4profit]

[quote user=beggs 12]Hi Mike,



Just read your post re: delinquent tenants who break leases. You mentioned at the bottom of your post (quote): "Where there has been default, we have collected every single time".... I'd be interested in hearing more about your experience with collecting and how you've gone about it. I'm currently dealing with a situation where a tenant abandoned my suite in the last two days, and still had until August 31 on her lease. On top of this, she also left the suite quite damaged. It sounds like you've encountered similar situations....how have you gone about handling it and collecting?



Thanks,

Shane


Do you have there LMR to apply to March?

Once a tenant has abandoned a unit you can no longer take them to the LTB. Your best route to collect is to go to small claims court assuming your tenant is not on OW or ODSP (government benefits). These types of tenants are not garnishable through small claims.

Hopefully you collected there SI#, banking info and employment details when you screened them as you will need this information.

 

[housingrental]

To add to Greg's post be sure to:

Thoroughly document everything

Mitigate damages - Get ad's up asap - Try to get it re-rented... be prepared to show this if unsuccessful ...

 

[ColdFire]

Another thing that you can do to ensure that you always get your rent is to use the service that we provide at www.buymyrent.ca. This is exactly the business that we are in. We ensure that landlords get 100% of their rent every time, as long as you have a Tribunal order in your favour. This service is geared toward the small landlords who are more vulnerable to these kind of things.



As for the rental lease term, I would recommend a 12 month lease. I believe that it's standard in Ontario.