When do I provide the keys to the rental unit?
The tenant selection process involves many steps. The final step is to hand over the keys to the tenant. When is the right time to hand over the keys?
The tenant selection process starts when the property is first advertised for rent, followed by showings to prospective tenants and screening of applicants for the property. All of these steps give you a glimpse into the person you are potentially renting to. During these interactions is when you read between the lines of what the person is saying and what they do? When a prospective tenant is late for a showing, this is showing disrespect for your time. If you ask for more details to be submitted with the application form and they are slow and or reluctant to assist you this is a sign they are not being truthful to who they are.
After completing your due diligence and you agree to select the applicants for the property you should draft the lease agreement and have them sign the paperwork. In BC as soon as they sign the tenancy agreement and provide the damage deposit you have entered into a contract with them for the property. It does not mean you must provide the keys at this time. It means the tenants have rights to the property, and if you changed your mind they may have recourse against you for breaking the agreement. We like to complete the lease signing and collection of the damage deposit before the move-in date. We find this holds the tenants responsible for the contract.
We sign the tenancy agreement and collect the damage deposit, then schedule a move-in inspection near the move-in date. At the move-in inspection we complete the condition inspection report with the tenants indicating the condition of the property. The condition inspection report has a section for how many keys you are providing to the tenant and should be indicated on the form. We then collect the first month’s rent. After we have the first month’s rent and they have signed the condition inspection form, then we hand over the keys.
I am surprised by stories of people who have handed over keys to people when the tenants have failed to pay a full damage deposit, the rent or completed the condition inspection report. Keys should never be provided without all three of those things being completed. The RTB standard agreement has a section where you indicate when the damage/pet deposit is due by. We always indicate the first day of the tenancy for the due date. If the deposit isn’t paid on this date tenants are not provided with the keys.
An applicant who fails to pay the damage deposit or miss the condition inspection report is likely to be a person you don’t want to be renting to.
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
