I have heard the term professional tenants from many Landlords. They describe these tenants as people who take advantage of Landlords and continue this process with each tenancy they enter. How do Professional Tenants continue to find places to rent? 

Landlords suggest there should be a bad tenant list to identify these types of people preventing them from renting, or their rent should be applied to credit rating bureaus so landlords can see if they pay rent on time. These tools exist already, they just take a little bit of effort. For every tenant's rent to be included in credit reports would require landlords to engage in a process to have the information collected. Many industries like telecommunications where phone bills etc are on credit ratings are very regulated industries allowing this process to be included. This would add costs for landlords, many of whom are already complaining about the costs associated with being a landlord.     

What can Landlords do to help prevent these situations?

The first step is performing due diligence during the tenant selection process. I recently saw an application a landlord received from a tenant where they identified on the application that they made $5000/ month. They then submitted backup documents, a tax return assessment which was clearly not legible if it belonged to the applicant. The tax assessment indicated the person earned $150K the prior year. That's a major red flag and a question should be asked to clarify the difference, because $5000 times 12 is only $60,000 not $150,000. In this case the landlord eventually lost about $20k in lost rent, damages and cost to evict the tenants. That is not the tenants fault, because the landlord failed to perform adequate due diligence.  

During the tenancy the landlord should inspect the unit regularly to ensure the tenant is meeting all the terms of the agreement, as non payment of rent is only one of many reasons a tenant may be evicted from a property. Many landlords determine a successful tenancy when the tenant pays rent on time each month, and is often unaware of the ongoings at the property. I know of a tenancy where the landlord failed to inspect the unit in the three years the tenant lived there. The tenant’s girlfriend moved in one year into the tenancy. The tenancy agreement had a clause which required the tenant to pay the landlord a fee equivalent to half a month’s rent if more tenants moved into the property. A simple inspection would have identified this issue, instead the tenant vacated without ever paying the additional fee. If there are issues relating to damages at that time, a Landlord is not required to wait until the end of the tenancy to seek costs for repairing damages. I have had multiple hearings with the RTB requesting tenants pay for a repair we completed where damage was caused by tenants, and after the hearing the tenant continued to reside at the property.  

At the end of the tenancy it is important to complete the move out inspection, which is a continuation of the move in inspection. If there are any issues this is the time to dispute them. If there are major costs which exceed the damage deposit, then the Landlord should file for the right to keep the deposit and collect other expenses associated with the end of the tenancy. If a monetary order is awarded, a Landlord has the right to file the order in court and have the order applied to their credit history. Many landlords are not willing to take these actions, viewing them as time consuming or stating that the individual has no money so I will never see their funds anyway. Failing to take these actions allows the “Professional Tenants”  to find another landlord they can take advantage of. If a previous landlord had followed through on these actions, you may not have rented to your current tenant.    

Being a Landlord means you are operating a business. I see many landlords try to run it as though it is not a business. They try to bend or circumvent the rules to meet their needs. Ask tenants to do things they are not supposed to, including not have a proper tenancy agreement, or try to change the agreement after a tenant moves in. Being a Landlord is more complicated than it appears from the outside.

Any business has risks associated with it. Retail stores have windows broken, products stolen, Restaurants have items broken, meals not paid for ect. The best way to eliminate or minimize the risks of being a landlord is to hire a professional property manager. It helps to have professionals on your side, to prevent a professional from taking advantage of you.    

If you need assistance managing your rental property, Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com