Being a homeowner entails considerable responsibility, especially if you plan to rent out a property you own. As with most scenarios involving legal implications, both landlords and tenants need to have a basic understanding of the rights and responsibilities relevant to residential tenancies in Ontario.
This week, guest author Marilyn Monteiro, a Licensed Paralegal at Monteiro Paralegal Services, shares some insights into the key considerations Ontario landlords should keep in mind when renting out their property.
1. You must use a standard form of lease: In Ontario, you must use a Standard Form of Lease Agreement (known as a residential tenancy agreement). It should include the basic terms and conditions of your rental agreement. Having this in place helps both parties understand their rights and responsibilities towards each other.
2. Choose your tenants carefully: We encourage landlords to be diligent when screening prospective tenants by verifying all the information they provide you. Some documents a landlord may request from prospective tenants include:
- Employment Letter(s) from current employers.
- Pay Stubs/Proof of Income (bank statements).
- Credit Check Reports.
- Identification (driver’s license, passport, etc.) and keep copies of these.
- References – At least 3.
- Information about current living situation.
- References of current landlord.
3. Store tenant documents in a safe and secure location: A lot of the information shared through the documents listed above is confidential and landlords should ensure that they use and retain that information securely.
4. Verify, Verify, Verify: Verifying a prospective tenants’ documents and their social media presence (such as on Facebook, Instagram, and LinkedIn) is important in order for the landlord to avoid any future problems and expenses.
5. Ask Questions: Landlords are encouraged to ask prospective tenants some of the questions listed below that are relevant to the tenancy.
- How many people will be occupying the unit?
- Do you have pets?
- Are you a smoker or a non-smoker?
- Why are you moving?
- How is your credit?
Disclaimer: The information contained herein is only for purposes of general information. It is recommended that you should not rely on or take any action based solely upon the information contained in this presentation without the benefit of professional counsel.
If you have any further questions about this subject, please do not hesitate to contact Marilyn Monteiro at 416-737-3969 or at marilyn@monteirolegal.com for more information.
Additional Resources
You can also validate a tenant’s background at websites, such as OpenRoom.ca, CanLII.org, and SingleKey.com
Have a great weekend!