Whether you are a Landlord with one property or a Landlord with many properties under management you should take a few simple steps to ensure that you mitigate your possible future losses.
First, when you advertise your property for rent, you should screen all prospective tenants for stability and suitability. To do this, simply have the prospective tenant complete a Tenant Application Form. Then check out their references and contact us, CINCB, to get a credit report. In order to get a credit report from CINCB you will need to get the prospective tenant’s permission to obtain the credit report. To do this, simply include a clause in the Tenant Application Form that gives you this permission. For your ease of reference we provide a sample Tenant Application Form in MS Word format below that you may use or edit as you or your attorney deem necessary. Please note that this form is presented ‘as is’ and CINCB does not accept any liability for your use of this form.
Click on the link to download the MS Word document, then click on Save to Save to your computer : Tenant Application
Once you have identified the prospective tenant that you desire to rent your property to, then the next step is to have the prospective tenant sign a formal rental agreement that sets out in detail your responsibilities and the tenant’s responsibilities including any other necessary issues that should be included. Because Rental Agreements and the clauses can vary greatly, we suggest that you consult with an attorney to help you prepare a formal lease agreement to ensure you have covered all the important issues and that they are in compliance with the local laws.
However, as it relates to collections, we suggest that you include a clause similar to the one below in whatever lease agreement you use to ensure you can recover any collection costs that you may incur should that route become necessary for you to collect your money. The sample clause is as follows:
“Should my account(s) become in default my account may be assigned to a credit bureau/collection bureau for collection and/or court proceedings and I may further be charged with collection fees, legal fees, and/or court costs to be recovered on an indemnity basis.”
In the event the tenant leaves unpaid balances with you or they default on the rental agreement and you successfully evict the tenant, contact CINCB immediately to list the debt with us for collection.
If the tenant gives you a cheque payment that returns to you and they do not clear it up within 30 days or make an agreeable payment plan with you, contact CINCB immediately to list the return cheque with us for collection.