To build your wealth and real estate investment portfolio, when you’re renting out properties, finding great tenants is a must.

We can all imagine what a bad tenant is, if you haven’t had direct experience with one before. Common tenant complaints in Toronto include things like not making on-time payments, directly or indirectly causing property damage, not being polite or respectful to neighbors, and far, far worse.

It can also be costly to get a bad tenant out and sometimes near-impossible. Sure, the Ontario Landlord and Tenant Board is there but you can wait months to be before them and have someone evicted or to get a tenancy issue resolved. Therefore, finding the best tenant for an investment property and doing due diligence beforehand is key.

For landlords with investment properties in South Etobicoke, here is what you can do.

Don’t Rent Quickly To The First 

Protect your investment. You may want to fill a rental unit quickly for the sake of profit but tenant quality matters. A bad tenant can make for a costly, time-consuming problem down the road. Take the time to do your due diligence.

Wondering if being a landlord is right for you? Read the pros and cons of becoming an investor in Toronto right here.

Check Past Landlord References

Positive references from past landlords is one of the biggest signs that you’ve got a good tenant. They’ll be able to tell you if there’s a track record of on-time payments or not and if the tenant was a problem in any way.

Verify That They Have Steady Income

The biggest worry most landlords have is whether a tenant will be able to meet their monthly payment obligations. That relates to income. Someone with steady income at a job that’s fairly stable is the ideal candidate.

Check For A Positive Credit Report

A person’s credit report will be able to tell you a lot about whether they’re able to come through on meeting rent. A bad credit score isn’t an automatic no. A history of missed payments is a definite red flag though.

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If They Lie To You, That’s An Automatic No

You have to be able to trust a tenant. To pay rent on time. To take care of your property. To be respectful towards others in the neighborhood. If you’ve caught them lying about something, they’re not trustworthy and you shouldn’t allow them to be your tenant. They may lie about employment, past history of evictions, past criminal records, or similar subjects. It’s always important to be upfront and honest, and if they aren’t affording you that respect, don’t take the risk.

Keep The Property Well-Maintained

If it’s been a while and you’re struggling to find a good tenant or have lost out on good tenants who’ve chosen to go rent with someone else, it may be a sign to improve your investment property a bit. Upgrade old fixtures. Improve the cosmetics a bit. You don’t have to do anything overly costly or big but make sure your property is in line with the fair market standard for the location and dazzle it up a bit.

Work With A Real Estate Team To Vet Tenants

An easy way to take all this work off your shoulders is to hire a real estate team to help. By doing this, you have someone experienced vetting potential tenants. They’re aware of the red flags to watch for and can ensure you receive the best possible tenant. 

If you want to know more about the ins and outs of becoming a Landlord, we are here to help guide you! Book a Meeting today. Or call us directly at (416) 319-6893 or reach us at info@adrianandrea.com.