Landlording in Canada. Michael Drouillard

PLACING THE “FOR RENT” AD

      Chapter 1

      PREPARING FOR A NEW TENANCY

      In this chapter, you will learn to:

      • Assess your space before attempting to rent it out; have friends or family provide a second opinion.

      • Make sure your property is ready before you advertise it for rent: clean, everything in working order, and all safety issues addressed.

      • Renovate your rental property periodically to receive the maximum possible rent, but be careful not to go overboard because not all renovations are worth the money.

      • Always bring in professionals to do any work on the property.

      • Screen your tradespeople: Anyone you hire should be licensed, bonded, and have liability insurance.

      Is Your Rental Ready for Viewing?

      Before you start showing the home to prospective tenants, honestly assess the space you’re going to rent out. As you walk through the home, ask yourself, “Would I live here?” If not, then don’t expect a good tenant to live there either. Determine what exactly turns you off, and do something about it!

      We all have blind spots about our own properties. Have friends or family members walk through the home with you for a second opinion. Don’t argue with them if you disagree that something needs to be done — they’re probably right.

      What are Some Common Basics Tenants Expect out of a Rental?

      Trash free

      There shouldn’t be a single item of garbage on the property. If the previous tenant left behind a mouldy beer fridge in the garage and a couch in the living room, pay the price to have all junk removed. Otherwise, you’ll annoy or even offend your new tenant. By letting the junk remain, the message you send to the new tenant is, “I’m going to squeeze every last dollar out of your tenancy.”

      Clean

      Your rental should be in clean, move-in condition. In other words, a spic-and-span, eat-off-the-floor kind of clean. Nobody wants to move into someone else’s dirt. Go through every room in the house and clean all surfaces.

      Sweep all floors, then get on your hands and knees and start scrubbing. Vacuuming the carpets is usually not enough. Have carpets professionally steam cleaned or rent a machine to shampoo the carpet yourself. Tenants will expect this to be done as a matter of routine. Have it done before the rental is shown.

      Pay particular attention to the kitchen and bathroom(s). All bathroom fixtures (toilet, bathtub, sink) should be sparkling. The kitchen cabinets must be immaculate inside and out. Check for moisture and mould underneath the fridge. The bathroom and kitchen areas must look clean (and smell clean too). No one wants to be reminded of past tenants.

      Don’t hesitate to bring in hired help if needed.

      Ethical landlording tip: Mould problems? Cleaning and painting may not be enough. Always investigate the cause of the mould and cure the problem at its source. Expect to spend a lot of time and energy dealing with a very unhappy tenant if you perform a Band-Aid fix and then rent a home with mould problems.

      Everything working

      All windows, doors and closet doors should open and close with ease. All locks must function without a problem. You are legally responsible to provide your tenant with safe and working locks.

      All wall switches and wall plugs should work. If they don’t, have an electrician repair them. At the same time, have the electrician certify that the home has been checked for electrical hazards.

      Every light bulb should be in working order. Your new tenant shouldn’t need to run to the store for new bulbs on the first day of tenancy.

      All appliances must be fully operational. If you need to buy another stove, don’t buy an old used one for $50. Buy a new stove. If the 20-year-old dryer takes three hours to dry clothing, buy a new one.

      Old appliances are inefficient, poorly insulated, and they annoy tenants. Old appliances mean you’ll be getting plenty of calls for repairs. Repair technicians are pricey. Buy new and you’ll enjoy peace of mind for years.

      New appliances don’t cost as much as they used to. In fact, basic appliance models are less expensive now than they were 20 years ago. Look around for the deals. It shouldn’t be too difficult to find good-sized, new fridges for under $500, stoves for under $350, and full-sized built-in dishwashers for $200.

      All major structural components in working order

      If your rental is part of a condominium or strata corporation, then the corporation management will take care of all exterior structural components for you. However, if a hot water tank and furnace exist within your suite, then those items are your responsibility.

      If your rental is not part of a condominium or strata corporation, you must ensure that all major structural components are in good repair. Did you have a professional home inspection performed when you bought the home? You can use the home inspector’s report as your guide for the life expectancy and condition of the home’s major structural components.

      All safety issues addressed

      The rental property must be safe for occupancy. Go through your rental property with a safety checklist form (available in bookstores or for free on the Internet).

      Fireplaces are a safety concern, especially wood burning fireplaces. Unless you prohibit the tenant from using the fireplace (through a term in your rental agreement), you’ll need to ensure that the fireplace is clean and inspected by a professional. You should also insist that your tenant provide you with proof of adequate tenant liability insurance.

      The dryer vent needs regular professional cleaning too. In the event of a dryer fire, you’ll be able to show your insurance company proof of dryer maintenance.

      Some landlords experience the misfortune of renting to “professional litigants” who’ll sue after falling in the bathtub. Protect yourself by purchasing your own liability insurance before you rent out the property (see the discussion on the importance of insurance later in Part 1).

      Renovations That Pay for Themselves

      To ensure that you receive the maximum possible rent, renovate your rental property periodically. When renovating for rental purposes, look for durable, lower cost material. Replacing the floor coverings and repainting is usually all you’ll need to do.

      Although the ins and outs of rental home renovations are beyond the scope of this book, the following are a few tips to get you started.

      Painting

      The interior of your rental should be repainted about every five years. Often all that a home needs to spark interest is a good paint job. Neutral colours are a must. Avoid flat paint, which scuffs and shows marks easily. Don’t risk purchasing cheap mistint paint; it’s cheap for a reason.

      Don’t try to choose colours at the store. Choose the colours at your rental home. How? Do as professional interior designers do. Purchase a set of colour chips from your paint dealer (less than $50). Take the chips into the rental property. Select colours by taking into consideration the flooring colours, the lighting in the home, etc.

      Try to avoid