So my tenants are moving out...

[acurAspec]

Both units will be vacant on February 1st 2012 and I am going through the process of renting them out again.



I showed the 1bedroom unit and noticed there is a door missing on teh bedroom door as it was apparently damaged and the tenant took it off saying he will replace it but hasnt done so already... also the door frames are stained wood and cannot be replicated but he managed to put a pretty bad dent the size of an egg and scratches all over them... We had our kitchen table in the unit which has been chipped on the surface and is not pretty anymore as well.



How do I go about collecting these damages now... I have his last month's rent but I will use that money to cover his last month. I should be asking for the extra amount now so that I can recondition the apartment before the next tenant moves in, correct? How do you put a value on a stained wood door frame or other miscalleneous items like cleaning ovens/fridges and repairs in walls? Is there a norm on the amounts for these items?



Also in the process to rent out to the next tenant... do you generally "waste" time to show the unit before giving them the rental application form to fill out? If they like the place and fill out the application, I will then do a credit check and decide if this is the tenant i want to hire... Is this a normal process or should I be getting them to fill out the rental application form before they even see the place...



Since I will have two units vacant at the same time-- can I lease one unit for 13 months to offset this problem or should I do a shorter 11 month term?



Thanks all for your help with these concerns!



Sasha

 

[invst4profit]

Aside from the door, which your tenant should pay for, the rest is considered as normal ware a tear for which a landlord is not compensated. Replace and bill your tenant now for the door and if he does not pay take him to the LTB while he is still a tenant.

As far as the length of lease is concerned the term is not of much importance. Some landlords do not sign a lease term and begin with a month to month. Once a lease ends it automatically becomes month to month.

Tenants may leave with two month notice usually, even during a lease, and landlords can not evict without cause so leases are of limited use aside from spelling out conditions. Landlords may hold a tenant to the financial responsibilities of a lease term when a replacement tenant can not be found during the term of the lease but this is not necessarily a good thing to force a tenant to stay where they do not want to be.

The LTB will only support lease language that is specifically referred to within the RTA.



What do you see as the purpose of the specific term of your lease.

 

[acurAspec]

Thanks for your reply Greg.



I simply want to sign a lease for different terms as to not have the same issue in a year-- to have both units vacant and have to deal with two units being moved in/out on the day.



I'm surprised to hear that the tenant is not responsible for the door frame damage and that the damaged door frames are considered normal wear and tear... it clearly looks unattractive for the next prospective tenants--



I guess i will need to get used to people damaging the units especially when they are moving out... i have already decided that i am to be present at the move out time to supervise-- and help if necessary.



Sasha

 

[invst4profit]

If the door frame damage is extraordinary in nature you could ask they pay to repair it. The question is how would it be repaired, could it be replaced?



As far as the term of the lease is concerned it would only be an issue if your tenants again decide to move at the end of the lease. This is not necessarily going to repeat itself each time so the likelihood is your leases will get out of sink naturally or could consequently coincide in the future. No way of really predicting.

 

[gwasser]

Regarding filling in tenant applications before showing the units. This depends entirely upon you and the market conditions. If you get lots of inquiries but nobody is willing to fill out the application what are you going to do? Not renting it out? Of course not. So be flexible and let people fill out the application after they have seen the place.



Only in a very tight market may you find people willing to give out their personal information prior to a showing - at least that is my experience.



BUT... before letting anyone move in, I do insist on a properly filled application and then I check every reference on it. If there are no reference, I am getting concerned - but new immigrants do sometimes have no references and may still be OK.



Having said that, I do NOT HAVE to rent out the place right away at all costs. So it depends on your risk tolerance as to whom you let in and whom not. A lot is based on how comfortable you feel with the tenant. So even if someone has excellent references, I sometimes don't lease it out because my gut tells me there is something wrong,



The overall process of finding the right tenant involves not only reference checks but also 'gut feeling'. Afterall, you will give those people custody of a very expensive piece of property and the damage they may inflict can be in the thousands. Is that worth a one month vacancy?



So have them fill out the application; check the references - if possible. Follow your gut and finally decide whether you want the tenant or not. Simple yet... complicated

 

[invst4profit]

Credit check, credit check, credit check. Very important.

Godfried makes a valid point about gut feelings but that should only go one way. In the case of a well qualified tenant in which you have a negative feeling you should reject however never under any circumstances should your gut feelings override your decision to reject a tenant that has poor qualifications.



If there credit score is below my minimum standard I simply ignore all other information and reject.

Remember the score tells you what the probability is of your applicant defaulting not simply that they have defaulted in the past. No credit score means you are deciding blind. When dealing with applicants you are considering allowing a total stranger to live in your property without the freedom to be able to get rid of them at your choosing.



Credit score is only a part of the screening process but it should carry the greatest weight in your final decision. A good job, good references even a good previous landlord recommendation should be taken with a grain of salt if there score says they have and will continue to default on payments.



You only get one chance to pick a tenant and that decision is either a asset or a liability. Only allow your feelings to influence the one you don't chose not the one you do chose. Negative feelings are of value, positive feelings are for gamblers and amateurs.