Renting Out Your Home is Tempting
If You Do Landlord Right
10 Most Common Mistakes by DIY Landlords
Not Run Background & Credit Check of Prospective Tenants
A rental background and credit check is like an x-ray that allows you to see beneath the surface of a potential tenant.
Past behavior tends to predict future behavior. If tenants have a history of not paying their bills or continuously paying their bills late, it is possible that this behavior will continue in the future – meaning that rent payments will be late or missed.
These checks will permit you to confirm that the tenants are in a position to pay rent and that there are no “red flags” with respect to their credit history. Before you proceed, make sure a written permission is obtained from the tenants to run the checks.
Ask for Improper Information from Tenants
When collecting a prospective tenant or a tenant’s personal information, landlord should collect only what information is necessary to rent and manage the property.
Landlord should ensure that these collection practices are in accordance with the obligations set out in PIPA (Personal Information Protection Act ) and the RTA (Residential Tenancy Act).
In addition, according to BC Human Right Code, landlord cannot refuse to rent to a tenant based on their race, colour, ancestry, place of origin, religion, marital status, family status, physical or mental disability, gender, sexual orientation, age or lawful source of income.
Rely on a Handshake without Proper Lease Agreement
Landlord should rent a place with a written agreement, and the agreement should be on the standard lease form (RTB-1).
According to RTA (Residential Tenancy Act), even if the landlord doesn’t prepare one, the standard terms of a tenancy agreement still apply automatically. So, why not having a written agreement to protect yourself?
Both landlords and tenants must sign and date the agreement. Landlords need to provide a printed copy to their tenants within 21 days of entering into the agreement.
Renting Property without Proper License
To rent residential property in the area of City of Vancouver, landlords needs a rental property business licence, no matter they hire a property manager or not. This includes the typical One-family dwelling, apartment house, and also laneway house and secondary suite and rooming house.
Understanding the local rules and regulations, as well as licensing requirements, are essential for landlord. It is always unwise to rent out a property without the required licenses, permits and approvals.
Renting Property without Proper Home-Owner Insurance
Whether you rent or own your property, the property should be protected with Home-Owner insurance, even though your tenants has already their tenant insurance.
Tenant insurance mainly covers personal property and liability owned by the tenants. Landlords needs a separate Home-Owner insurance coverage for damages to your property from unexpected events like a fire or water damage. Landlords also need liability insurance in case someone are injured on your rental property.
No Move-In/Move-Out Inspection
According to the RTA (Residental Tenancy Act), landlords must give tenant the required opportunities to inspect the property and provide a copy of the completed Condition Inspection Report within 7 days of the inspection.
At the end of a tenancy, a landlord and tenant also inspect the property together.
Comparing the move-in and move-out Condition Inspection Reports allows the landlord and tenant to see if the property was damaged and who is responsible for paying for repairs.
Completing these steps is important in order to claim any of the deposits for the damages.
Not Ensure Tenant Pay Rent on Time
As a landlord, it’s absolutely vital to collect your rent payments on time. RTA (Residential Tenancy Act) is very clear that Rent must be paid in full and on time, and in the case of a 10 Day Notice in full before the end of the fifth day.
A landlord can give a 10 Day Notice to End Tenancy if rent or utilities are not paid by midnight on the due date. This notice may be served to a tenant the day after rent is due, or 30 days after giving a written demand for a utility payment
The notice is cancelled and the tenancy can continue if the tenant pays all the rent and utilities owing within five days of receiving the notice.
Under-estimate the time and efforts required
Landlords often ask if it’s possible for them to manage the property on their own. Of course it’s possible, as long as you have sufficient knowledge, experience, resources and time, and more importantly, don’t underestimate all of them.
For example, according to Residential Tenancy Act (RTA Sec.32.1), rental properties must comply with health, safety, and housing standards required by law. Landlords are generally responsible for the following essential repair and maintenance issues: Heating, Plumbing, Electricity, Locks etc. You have to be ready to respond to tenants and their needs at a reasonable time, day and night.
Not Inspect Your Property Regularly
One of the best way to protect your rental property is to inspect it during the lease term, and do it regularly and consistently.
Otherwise, you may be surprised to find any damage that has been ignored, signs of criminal activity, which can lead to fines, prolonged vacancies, and even forfeiture; or Dangerous conditions like environmental hazards, blocked exits, dangerous animals, or unknown occupants.
It is also important to note that most Home-Owner insurance policies have a condition clause, which states the rental property is required to be inspected regularly,
Hire unlicensed Property Manager
You can manage your rental property on your own, or by hiring a property manager. If you decide to hire a property manager, make sure he/she is a licensed one.
If the Real Estate “Professional” you are working with is unlicensed. Not only is it possible they have little to no experience , but there is no regulatory body monitoring them or protecting you! The likelihood that they will try and swindle you is very high, as they are known for taking advantage of those who are either inexperienced (real estate-wise) or financially vulnerable.
Right Property Manager Changes Everything
We can’t guarantee that the above tips will help you manage your house effectively. However, we believe that ignoring them will cost you.
Remember to find a professional and licensed Property Manager who always works for your needs, not for his/her own commission. Call us 778.862.8321
See what Our Clients Say About Us
(DUE TO LIMITED SPACE, ONLY SOME OF THE TESTIMONIALS RECEIVED ARE SHOWN HERE)
We hoped to find good tenants for our rental property. Lotus and Patrick helped a lot in the whole progress including thorough with their screening process from suitable prospects, interviewing possible new renters, and reference checks.
They took pictures for a move-in inspection report to record possible damages. They are using cutting edge technology like 3D walkthru tour and effective digital marketing to find a good tenant.
Lotus and Patrick who have always been reliable, honest, trustworthy, and helpful in all situations have always given us peace of mind and no worries at all. I will not hesitate to recommend them to anyone who is looking for a property manager.
We are very impressed with your professionalism and candid advices to us during the past weeks, which helped to ensure that the rental unit is in its best state for renting. There are several areas of the unit that require work to be done, e.g. removal of furniture, and they were taken care of smoothly.
You went through a very meticulous search for prospective tenants, and conducted a thorough due diligence in validating the financial well being of the tenants.
We will definitely vote for Lotus and Patrick’s service as 5++ stars. We will continue to rely upon your excellent services to manage the rental unit going forward.
It was our pleasure to work with Lotus even before our daughter moved back to Vancouver 18 months ago, Lotus has been extremely helpful in assisting our daughter to settle down with her first home.
Our family recently bought a beautiful condo for what we have considered being a very good deal in Metrotown, Lotus was endlessly helpful throughout the process, from the initial search to closing. At the same time, he also helped to rent out our other condo within one week despite the competitive market.
We felt Lotus was efficient, organized and professional. We would not hesitate to recommend his service to anyone who is looking for properties in Vancouver and for sure Lotus will be our designated realtor for our family.
I’d like to say thank you to Lotus and Patrick for their property management services of my apartment unit in downtown Vancouver.
In the past, my impression about finding a good property manager is difficult, because I heard that the profit from it is not attractive, and the quality of services may be in doubt.
Luckily, Lotus and Patrick help me to change this view. After take procession of the new apartment, Lotus and Patrick help me to followup the lists of deficiencies with the developer, they spent lot of effort to market the unit for me (including using some high tech to 3D scan my apartment and let potential tenant view my apartment online, etc).
Finally, the apartment is rented successfully in 2 weeks time, to a employee who works in NASDAQ listed high tech company. I feel that they are professional and will not over-committed. I am happy and confident to refer my friends to Lotus and Patrick, and wish them all the best.
Sharon & Garros
During every day in Vancouver, I was in a hurry to deal with a lot of things, problems were appear and I did not know how to solve them. At that time, I accidentally met him. When I met him the first time, I felt that he was very friendly and gentle.
During our conversation, he analyzed the situation of our property with professional knowledge and solve my problems. What was the most memorable about him? It was his professional service mode seem a “24-hour” work attitude for client. I was very much appreciated to him.
Before leaving Hong Kong, I decided to hand over my property to him. Of course, he professionally and immediately followed up and quickly helped me rent out my unit with a good pricing . I am very grateful to him, and thank God for arranged us (my spouse and I) to met – Lotus Yuen @ Remax.