What to do if your Tenant doesn’t pay their Rent

Non-payment of rent is likely the single biggest fear of every Landlord.  With no rent coming in, Landlords quickly feel the financial strain of carrying the costs of the property on their own.

As if the financial strain isn’t enough, Landlords must also contend with significant delays in the legal process to resolve the non-payment issue.  Since the onset of the pandemic, the backlog of cases at the Landlord and Tenant Board has ballooned to 53,000 cases, according to a March, 2024 report. Non-payment of rent issues are now taking upwards of 8-12 months to resolve.

It seems like a dire situation, but that doesn’t mean that you are powerless.  Resolving a non-payment of rent issue is all about being proactive and taking action quickly when a problem arises.

How to determine the correct course of action

In our experience, rent payment issues generally fit within five levels of severity.  Each level has an appropriate course of action:

Level 1:

The Tenant proactively contacts you to say that their rent will be late and gives you a definite date on which it will be paid.  They then pay on or before that date as promised.

Usually nothing to worry about, but might indicate that their finances are fragile and are living paycheque to paycheque. Best to cut them some slack if they’ve been a good Tenant, which can help to build goodwill. However, if it starts to happen more often, you’ll need to take a stricter approach to the keeping them on the payment schedule.

What to do:

Communicate with the Tenant and let them know that you can give them some extra time this month, but going forward they need to be on-time, as per their lease agreement.  Send a friendly payment reminder a couple of days before their next rent payment is due.

Level 2:

The Tenant’s payment behaviour starts to become erratic or unpredictable.  They start to develop a habit of paying late. 

At first, this will seem like a minor issue.  You trust the Tenant and know that they have good intentions and will pay as soon as they’re able.  Eventually though, this will become the norm and you’ll start to feel that the Tenant is taking advantage of your goodwill.  This payment pattern can easily slip into a more serious issue.

What to do:

Maintain an open line of communication with the Tenant and follow up on payment frequently.  Silence on your part is worse thing that you can do, as it takes the pressure off the Tenant.  If they don’t hear from you, they’ll assume that you’re ok with the situation.  If the behaviour persists, start the RTA process outlined below, by serving the Form N4.  That might be enough to let them know you’re serious and they’ll get their payments back on schedule.

Level 3:

The Tenant starts paying in instalments randomly throughout the month without your consent.

This is a more serious issue that warrants a more aggressive response.

What to do:

Start the RTA process outlined below as soon as their full rent payment is not received.  In many cases, the N4 will be voided by the end of the month assuming they pay in full.  That’s ok.  Start the process again if their rent is late the following month.  Yes, it’s a lot of paperwork and can seem like the Tenant is gaming the system, but your effort will pay off.  If the payment behaviour persists and you have the history of N4s, you can seek eviction for constant late payment of rent.  That route is not always successful, but will likely help to get the Tenant back on their payment schedule.

Level 4:

The Tenant starts to accumulate arrears.

This is where the slope becomes slippery.  Arrears can accumulate quickly (especially with today’s high rental rates!), to the point where the Tenant is not able to catch up.  It’s important that you take action as soon as any arrears are carried over to the next month. 

What to do:

Start and follow the RTA process outlined below immediately.  No matter what the Tenant’s story is, or how good your relationship has been, start the process without hesitation.  If the Tenant pays the arrears and voids the N4, great!  But if things start to spiral downwards, you’ll be in a great position to get the legal process going with the L1 Application before the arrears accumulate too much.

Level 5:

The Tenant stops paying rent and becomes difficult to get in touch with.

In our experience, this usually does not happen out of the blue, as there are usually indicators as described in points 1 to 4 above.  The Tenant may be upset about some other issue (eg. unresolved maintenance issues) or may have experienced a traumatic even (eg. a job loss).  In most cases, there is a change in behaviour leading up to this scenario that the Landlord should have been aware of.  The non-payment of rent is basically the bottom of a downward spiral that has been happening for some time.

What to do:

Hopefully, you’ve already started the process by serving the N4.  If not, don’t wait and hope that the situation improves.  It likely won’t.  If the Tenant is not communicating, then submit the L1 Application to start the legal process.

How to take control of the situation

Take action immediately

The biggest mistake we see Landlords make is letting the unacceptable payment behaviour continue too long before taking action.  This might be because they have a good relationship with the Tenant and want to help them out, or they just procrastinate because they don’t know how to handle the issue correctly, or they falsely believe that the situation will improve.

The problem is: with today’s high rental rates, the arrears accumulate so quickly.  Realistically, if a Tenant hits 2 month’s of arrears it’s highly unlikely that they’ll be able to catch up. 

If you haven’t started the legal process by that point, then you’re heading for a world of hurt, as it could take 4-6 months to just get a hearing with the LTB, then another 2-3 months until the actual eviction date.  That could potentially mean almost a year without rent.  It happens just that easily.

The best course of action is to start the legal process immediately by following the RTA process outlined below.  Even if the Tenant does pay their rent in full and restarts the process, at least you’ve demonstrated that you are serious and will take action.

The RTA Process

There are specific steps you should follow, as outlined by the Ontario Residential Tenancies Act (RTA).  Apart from the backlog at the LTB, the system does work if everything is done correctly. 

1. Serve a Notice of Non-Payment of Rent

– Form N4 (click here to access the N4 and Instructions published by Tribunals Ontario)

– This form can be served to the Tenant the day after rent is due.

– It provides the Tenant with 14 days to either pay the overdue rent or move out (19 days if sending the notice by mail).

– Clearly and correctly state the amount of rent owed and the period it covers.  The amount owed must be rent only, not other arrears, such as Utilities.

– Send the notice by an allowable means of delivery.  Email delivery is permitted only if the Tenant has consented in writing, which should be specified in the Ontario Standard Lease Agreement. You can read our overview and learn the most important clauses of the Lease Agreement Here.

2. Wait for the Notice Period to Expire

– If the Tenant pays the rent within the notice period, the notice becomes void.

– If the Tenant does not pay the rent or move out within the notice period, the Landlord can proceed to the next step.

3. File an Application to Evict a Tenant for Non-payment of Rent and to Collect Rent the Tenant Owes

– Form L1 (click here to access the L1 and Instructions published by Tribunals Ontario)

– This form is used to request a hearing with the LTB to seek an eviction order and to collect the rent owed.

– The application can be submitted online or in person, and there is a fee associated with filing ($186.00 at the time of writing).

4. Attend the LTB Hearing

– Both the Landlord and tenant will be notified of the hearing date.

– The Landlord must present evidence of the unpaid rent and any communications with the tenant.

– The Tenant is given the opportunity to explain their situation.

– The Landlord and Tenant may negotiate a repayment plan, which can be a win-win.  The Landlord is able to collect the arrears owing and the Tenant avoids eviction.  One condition of the agreement is that the Tenant is automatically evicted if they are late with a payment.

5. Receive the Decision

– If the LTB rules in favor of the Landlord, an eviction order will be issued (if a repayment agreement was not feasible).

– The Tenant will have an opportunity to pay the rent owed and void the eviction order, usually within 11 days (referred to as the “standard 11-day void period”).

– If the Tenant does not pay within this period, the eviction order becomes enforceable.

6. Enforce the Eviction Order

– If the Tenant still does not pay the rent owed after the LTB decision, the Landlord can request the Sheriff to enforce the eviction order.

– Only the Sheriff can legally remove the Tenant from the rental unit.

7. Collecting Unpaid Rent

– If the Tenant owes rent even after vacating the property, the Landlord can take further steps to collect the debt, such as hiring a collection agency or seeking garnishment of wages.

– In our experience, this can be very challenging.  For one thing, if the Tenant had the money, they likely would have paid their rent to avoid eviction, so collecting it afterwards will be difficult.  Secondly, it can be difficult to track them down once they’ve moved out.  Thirdly, they can claim bankruptcy to avoid repayment altogether.

A note about getting Legal Advice

We always recommend that a Landlord should hire a reputable Paralegal to represent them throughout this process.  Yes, there is a cost to legal representation, but the benefits far outweigh the costs:

  1. Once you serve the N4 and file the L1 Application, you are essentially entering the legal system and need someone on your team with experience in navigating the system.
  2. There are many nuances to navigating this process effectively.  An experienced Paralegal will know the correct action to take in order to ensure the best outcome.
  3. Even a minor mistake in the paperwork or how it was served can be cause for dismissal of the case.
  4. The Landlord is burdened with additional responsibilities throughout the process and a Paralegal will ensure that you are doing everything that you need to do.
  5. The Tenant will be provided duty council (ie. court-appointed legal representation) by the court at no cost.  This will put you at a considerable disadvantage if you are representing yourself.
  6. The Tenant and/or their legal representative may use certain tactics to delay Hearings and execution of an Order or Eviction.  An experienced Paralegal knows all of the tricks and can help you avoid costly delays.

Conclusion

Having a Tenant not pay their rent can be a stressful situation, but that doesn’t mean that you are powerless.  In any scenario, you need to take quick and correct action to minimize your risk and losses. 

By following the process outlined above, you’ll be able to resolve many issues yourself.  You’ll also be in a position to swiftly take legal action if the problem persists or worsens. 

Like anything, it’s impossible to control the behaviour and actions of others, but by preparing yourself for action, you protect yourself against negative outcomes.

Marketing your Rental Property in 10 Easy Steps

Finding a high-quality Tenant begins with effective marketing of your rental listing.

What do we mean by effective marketing?

It’s the process of attracting your ideal Tenant.  Anyone can post a Listing on Facebook and Kijiji, but there’s a process involved in creating a high-quality Listing that will attract the right Tenant, not just any Tenant. 

Our 10-step guide to Marketing your Rental Listing

1. Prepare the Property

You want your rental unit to be appealing to potential Tenants and stand out from other rental listings on the market. Always remember that the quality of the property determines the quality of the Tenant.

In the interior, ensure the property is thoroughly cleaned and any necessary maintenance or repairs are completed.  On the exterior, cut the grass and remove any unnecessary clutter (e.g. recycle or garbage bins).  Strive to improve the curb appeal, to make a good first impression in your photos and during Showings.

If you have an existing Tenant living in the property, there is only so much that you can do.  If they have given proper notice to vacate, they are obligated to cooperate with the listing/showing process.  However, that doesn’t mean that they will necessarily keep the rental unit in the condition that you expect for Showings, nor are they obligated to (they have a right to quiet enjoyment).

The best course of action with existing Tenants would be to ask them politely to help you out, by keeping their unit clean and decluttered.  During showings, inform the candidate that the unit will professionally cleaned and list the repairs and upgrades that will be completed before they move in.  The rental unit may not show well with a Tenant living there, but potential applicants may look past that if they know that it will be in good condition when they take possession.

2. Professional Photography

Hire a professional photographer to take high-quality photos. Good lighting and angles can make a significant difference in how attractive the property appears in listings. 

Professional photos will help you to stand out in the crowd compared to competing rental listings in the area.  A good set of professional photos will cost approximately $150.00, but you’ll have them on hand for future listings.

3. Set a Competitive Rental Rate

Research similar properties in the area to understand the going rental rates. Online platforms like Facebook Marketplace, Realtor.ca and Kijiji.ca can provide insights into local market conditions.

Be realistic in your expectations.  Rental rates are market-driven, not cost-driven.  This means that rental rates are determined by the characteristics of the local market, not your monthly carrying cost of the property.

At a basic level, the rental rate must be comparable to similar units available for rent in your market. 

You must also consider affordability.  What can Tenants realistically afford to pay for rent in your area?  Consider their lifestyle and other expenses they are juggling, such as: Utilities, fuel, groceries, car payments, etc?

Determining a correct rental rate is not an exact science.  It’s more like an educated guess.  The key is to be aware of the feedback you’re receiving and adjust accordingly.  For example, if the rental rate is too high, there will be very little interest in the property.  You should try reducing the price to stimulate traffic on your listing.

4. Create a Compelling Listing

Write a detailed description highlighting the property’s features, amenities, and any unique aspects. Include information on nearby schools, public transport, shopping centers, and other local amenities.

Also include details about what information the candidate needs to provide as part of the application process.  For example, we require ‘recent proof of income, a recent Credit Report and Photo ID’.

Avoid application requirements that are unreasonable or could be seen as discriminatory or illegal.  Do some research ahead of time, to ensure that you comply with Ontario Laws.

5. Advertise Online

Once you’ve created a compelling listing and obtained a great set of photos, it’s time to put it all together and create your rental Ads.

Today, it’s easier than ever to reach your ideal Tenant candidates.  Most of the advertising options are free of charge and reach a large audience depending on where you’re located.  There are also a couple of paid-advertising options, that can achieve a larger targeted reach. 

What are some of the best advertising platforms?

  • Facebook Marketplace
  • Local Facebook rental pages
  • Kijiji.ca
  • Rentals.ca and similar platforms

There are also a few platforms that provide a wider reach, but come with a cost:

  • Realtor.ca (MLS) – usually will need a Realtor to list the property for you.  Commissions are as high as One Month’s Rent.
  • Rhenti.com – this platform syndicates your ads across many rental platforms at a reasonable cost.

6. Spread the word within your network

Inform friends, family, and colleagues that you have a rental property available. Personal referrals can be very effective.  You likely know someone that knows someone that’s looking for a place.

7. Signage on the Property

If the property is located on a high-traffic street, then a high-quality sign is a great way to raise awareness about your listing.  Reach out to a local sign shop to have a simple yet professional sign made for you.  The cost is minimal and will look much more professional that a hand-written one.

8. Monitor Response Rates

Once your Ads are posted, you should start to receive enquiries immediately.  The amount of traffic that you receive is a good indicator of how well you are positioned in the market.  If you only receive a trickle of interest, then your rental rate might be a little high or you might need to expand your reach with paid advertising.  Monitor the traffic for one to two weeks, then adjust accordingly.

9. Respond quickly and in a professional manner

Finding a great Tenant is a competitive game.  Every other Landlord wants them, so you need to move fast to get them before they do. 

Your response should be polite and professional, more like business communication as opposed to chatting with a friend.  In the early stages, avoid phone calls and stick with written communication with the candidate, at least until you meet them for a Showing.

One important note: You must avoid getting sucked into the drama in someone’s life.  You’ll have people send you long explanations about their situation, which can be a red flag.  Some of their stories can be heartbreaking and you will naturally want to help.  But you must remember that the drama is usually a pattern in that person’s life and will eventually affect you and your rental business.  Best course of action is to not respond and move on.

10. Start your Tenant Screening process

The moment that you connect with a potential candidate is the moment that your Tenant Screening process starts.

You can learn more about our process for effectively screening and selecting a potential Tenant HERE.

Conclusion

Attracting the right Tenant for your property begins with creating a high-quality Listing that will set you apart from the competition.  It does take extra effort and some expense, but the quality of your Listing will have a direct impact on the quality of your applicants.

Successful Landlords get Help

As every Landlord knows, being a Housing Provider is both rewarding and challenging.  At times, it can feel like a rollercoaster of emotion, as things can go from calm to crisis at any moment.  It can be difficult to manage the fluctuating demands of the property, especially with all the other demands in your life.

On a daily basis, we see Landlords that are overwhelmed, discouraged, frustrated and tired.  This state of mind can create a downward spiral of procrastination, indecision and indifference, which can damage their relationship with their Tenant and negatively impact the financial performance of the property.

It doesn’t have to be this way!  

The most successful Landlords realize that they can’t do it all themselves.  They get help with the most critical elements of the rental business by building a team of experienced professionals that can handle any challenge.

Where do Landlords need help the most?

1. Finding high-quality Tenants

Finding a good Tenant is your highest priority as a Housing Provider, but most Landlords don’t have the time, patience or tools necessary to do it properly.  This can lead to short-cuts and bad decisions when it comes to choosing a Tenant.

Getting help with finding a Tenant will pay off in many ways.  For example, a Property Manager will do the legwork of vetting candidates and present you with the best potential Tenant.  This will save you time, effort and the stress associated with finding the right fit for you and your property.  A good Property Manager will also stand behind their Tenant selection by offering a guarantee to reduce your risk.

Learn more about our Tenant Screening process HERE.

2. Maintenance and Repairs

Being a Housing Provider means that you’re on-call 24/7 for your Tenants. 

As a Landlord, it’s important that you be responsive and proactive when it comes to maintenance and repairs.  This can be a challenge for some Landlords, as they might not have the experience or expertise to know what to do, or they may not live anywhere near the property.

Ideally, you should have a network of contractors and trades at your disposal, including:

  • A Plumber
  • An Electrician
  • HVAC Contractor
  • Hot Water Tank Technician
  • A Roofer
  • A Handyman for minor repairs
  • Lawn and Garden Contractor

Of course, you can’t predict every issue, but having these contractors at your fingertips will cover 95% of the issues that arise.  Another option is to hire a Property Manager, as they already have a network of contractors in place and can respond quickly when the need arises.

3. Doing things “correctly” as a Landlord

What do I mean by ‘correctly’?

Owning a rental property and being a Landlord is a business.  You’re offering a product to the market (your rental unit), to solve a need (Housing) in exchange for money (Rent) to a Customer (Tenant).  Like any business, there are certain rules, protocols and standards, either real or implied, that must be done correctly for a business to be successful.

This is even more critical in the rental business, as Housing plays such an important role in your Tenant’s life (and all of Humanity for that matter).  I would go as far as to say that Housing forms the foundation of our Society.

What should be done correctly?

In our interactions with Tenants:

Operationally:

  • What Notices to serve and how to serve them
  • Notice of Entry
  • Tenant’s right to quiet enjoyment
  • Rent Increases
  • Inspections and Fire Safety
  • Requirements under the Residential Tenancies Act

Where can you get help?

4. Legal Representation

Sometimes things just don’t go right.  That’s the reality and risk of being a Housing Provider.

When things do go wrong, it’s important that you take swift and correct action, so that the problem doesn’t escalate.  For example, if a Tenant stops paying their rent, or has damaged their unit, or has a dispute with a neighbouring Tenant, swift action is needed to correct the problem and hopefully get things back on track.

Depending on the situation, it can be difficult to know what the correct action is.  Most Landlords end up guessing and blundering their way through it, which often makes things worse.

The correct course of action in any situation is to not guess, but to get help or advice from someone with experience.  A Property Manager can help, but a good Paralegal is also an essential part of your team.  Yes, hiring a Paralegal does come at a cost, but it will save you loads of time, money and stress.  An experienced Paralegal is invaluable, as they know how to navigate the legal system, to get issues resolved quickly and efficiently.

One other thing to consider: If the issue does go to a hearing at the Landlord and Tenant Board, the Tenant will be provided Duty-Council free of charge.  That means that you’ll be pleading your case against an experienced Paralegal.  This can put you at a disadvantage as they know the laws and how to navigate the system for the benefit of the Tenant.

Conclusion

Getting help with key elements of the rental business is critical for success as a Landlord.  Trying to do everything yourself might save you money in the short-term, but can end up costing you lost time and money and increased stress.  Get professional help and keep your rental business on the right track!

Should you give an annual Rent Increase?

The simple answer is Yes!

Many Landlords are indecisive when it comes to giving their Tenant an annual rent increase.

On one hand, their costs are going up every year, but on the other hand, they don’t want to rock the boat and risk losing a good Tenant.

I’ve been there.  We were in the same situation with the Tenants at our first rental property.  They were a fantastic young couple and took good care of the property.  They paid their rent on time and were a pleasure to deal with, so we didn’t increase the rent for many years.

The problem is, eventually the rental rate is way behind the market rate.  In our case, we were $500/month behind.  Money’s not everything, but eventually you start looking at what you’re getting vs. what you could be getting.  When it gets to that point, you kinda start wanting the Tenant to leave, even though they’re a great Tenant.

The Tenants finally gave notice to vacate after about 7 years of renting from us.  I feel a little guilty in saying it, but we were glad that they were moving on, as we’d be able to get the property back up to market rent.  They were fantastic Tenants, but it definitely would have been a better experience for us if we had increased the rent throughout the tenancy.

The lesson for me was: It’s important that a Landlord consider the needs of the Tenant and foster a positive Landlord-Tenant relationship (which we got right), but the Landlord also needs to balance that with protecting their own best interest, so that the relationship is mutually beneficial. 

Reasons why Landlords choose not to give a Rent Increase

Fear of upsetting or losing a good Tenant

Many Landlords are happy with their nice, stable Tenants, so are hesitant to increase the rent because they don’t want to “rock the boat”.  They fear losing the Tenant and the associated costs of finding a new Tenant, plus the risk of a vacancy or getting a bad Tenant next time.

The allowable increase percentage seems nominal

Landlords will also rationalize that the amount of the allowable rent increase (for most units in Ontario the maximum is 2.5% in 2024).  However, you need to consider the long-term. 

They don’t need the money

A great position to be in for sure, but still, the property is an asset and should be performing at peak capacity.  The Landlord should consider Return on Capital and what it looks like if they ever decided to sell the property.  A low rental rate could have a negative impact on the selling price.

Why you should give an increase

Your Expenses will increase every year

As the property owner, your costs will go up every year, guaranteed.  Your Property Taxes, Insurance, Maintenance costs, and maybe even your borrowing costs will go up.  That means that you’re essentially making less money as time goes by.

Keep up with market Rental Rates

Market rental rates generally trend upwards, so you can soon find that your rental rate is hundreds of dollars behind the market rate.  Your Tenants will also see this and will be less likely to move out because their costs will be higher for the next rental unit.  They know they have a good deal and will sit tight. 

The Compounding Effect

As you can see in the table below, even small rent increases compound over time.  This can have a significant impact on the financial performance of the property over the years.  The allowable rent increase may not keep pace with the market, but at least you won’t be too far behind.

Tenants expect a Rent Increase

In general, most Tenant expect that the rent will go up each year and accept it.  If the Landlord and Tenant are on good terms, then the likelihood of a rent increase causing a Tenant to leave is highly unlikely.

You’ll eventually resent the Tenant

As I mentioned in my own story, the Landlord-Tenant relationship must be mutually beneficial.  Fostering a great relationship with your Tenant by not increasing the rent is an admirable quality, but you might eventually resent the Tenant because their rental rate is so low and they have no plans on leaving any time soon.  You’ll start feeling like you’re being taken advantage of, even though it was your choice not to increase the rent over the years.

Low risk of losing a good Tenant

The risk of losing a Tenant is low, as they will likely not be able to find anything cheaper.  Tenant’s keep a close eye on the market and know if they’re at, above or below the market rental rate. 

If they’re generally happy with their rental unit and have good relationship with their Landlord, they are unlikely to look elsewhere.  Finding and moving to a new place is costly and time-consuming for the Tenant (plus the risk of getting a bad Landlord).  As long as the rent increase is reasonable, it makes more sense for them to stay where they are.

Does a Rent Increase need to be on an annual basis?

No, it doesn’t.

In Ontario, a minimum of 12 months must pass between each rent increase and Tenants must be given 90-days notice using the N1 Form.  But that doesn’t mean that you must give a rent increase every 12 months.  You can give an increase every 15 or 18 months, if that makes more sense for you.

What about properties that are exempt from Rent Control?

This is where it can get tricky.

In Ontario, most rental units that were built after November, 2018 are not subject to Rent Control. That means that a Landlord is free to increase the rent as much as they want.

In this scenario, we always suggest that the Landlord keep the increase to a reasonable amount, say 5%.  This amount seems reasonable to the Tenant, yet still gives a significant bump in revenue to the Landlord.

The challenge we’re seeing today is that because the property owner paid such a high price for the property in recent years, most find it difficult to maintain a positive cashflow.  So when the time comes for the annual rent increase, many will base the increase on the carrying costs of the property.  We’ve seen rent increases in the range of $300 – $500 per month.  Not because the Landlord is spiteful, but because their costs are so high and the property is a financial drain on their personal finances.  Unfortunately, for the Tenant the Tenant doesn’t have much choice in this scenario, except to find a cheaper place to live.

Is there a time when you shouldn’t give an increase?

Yes, there are circumstances where it makes more sense to forego the rent increase:

Buyer’s Market

Real Estate works in cycles, so there may be times when supply of rental housing in the area exceeds demand.  This can drive rental rates down, which means that Tenants have more options and might even be able to save a few dollars by moving to a less expensive rental unit.

Price threshold

If your current rental rate is at or near the market rate, then you might want to reconsider giving a rent increase.  As your rate starts to creep above the market rate, Tenants will naturally start looking for something less expensive.

Catastrophic Events

Events like the recent pandemic or the closing of a local Employer can have a significant effect on the rental market. 

In these situations, you should shift your focus to Tenant Retention, as turning a Tenant during these periods would be costly and you’re less likely to obtain a higher rental rate.

In general, we strongly encourage our Clients to increase the rent within the allowable limits annually.  The risk of losing a good Tenant is low and Landlords need to do all they can to ensure that they’re not falling behind every year.  It’s just good business and beneficial to both the Landlord and the Tenant in the long run.

The Responsive Landlord Wins

In todays rental environment, Tenants have higher expectations of their Landlord than they did in the past. I don’t mean that they are more demanding, but they do have higher expectations in terms of living standards, fairness and most importantly: Responsiveness.

The rental business has changed and Housing Providers must recognize that there is now a Customer Service element to the rental business.  The Tenants of today are paying significantly higher rents, have higher living standards, have more selection of rental units available and are a more educated group of consumers than ever before. The Tenant should now be viewed as a Customer, with the Product being the rental unit and the ‘after-sales service’ that’s provided by the Landlord. Responsiveness is a fundamental element of good Customer Service and Landlords need to embrace this.

Our culture has also changed. All of us expect things to happen instantly. Whether it’s texting a friend or ordering food delivery, we expect quick response and swift action. We pretty much have zero tolerance for waiting for anything and Tenant expectations are no different.

But being responsive goes beyond good Customer Service or keeping the Tenant happy; it’s a fundamental aspect of property management that also impacts property maintenance, legal compliance, and the financial performance of the rental unit.

Why being responsive is so critical for a Landlord

Tenant Satisfaction

Responsiveness contributes significantly to Tenant satisfaction. When Landlords promptly address concerns, Tenants feel valued and respected, leading to a more positive rental experience. Satisfied Tenants are more likely to stay in place, reducing turnover costs and stabilizing income for the Landlord.

Keeping Maintenance and Repairs under control

Quick responses to maintenance requests prevent minor issues from escalating into major problems. Timely repairs help maintain the property’s condition and value, reducing the risk of costly repairs down the line.

Legal Compliance

Landlords have legal obligations to maintain safe and habitable living conditions for their Tenants. Prompt responses to issues related to health, safety, conflict and maintenance help Landlords fulfill these obligations and avoid legal liabilities.

Tenant Retention

Responsive landlords tend to have higher Tenant retention rates. Tenants are more likely to continue with their Lease if they feel their concerns are addressed promptly and their living environment is well-maintained. Less Tenant turnover reduces costs and stabilizes the revenue of the rental unit.

Reputation Management

Word-of-mouth can significantly impact a Landlord’s reputation, especially with the advent of Landlord-Tenant Forums on Social Media.  An upset or dissatisfied Tenant can make can cause quite a stir online, which can impact a Landlord’s ability to find good-quality Tenants in the future.

Financial Considerations

Delayed responses to maintenance issues or tenant complaints can result in financial losses. For example, prolonged vacancies due to Tenant dissatisfaction or property damage from neglected maintenance can affect rental income and property value.

How to be a responsive Landlord

Prompt Communication

Respond to tenant inquiries, requests, and concerns in a timely manner. Whether it’s via phone, email, or an online Property Management software platform, being accessible and responsive shows that you prioritize Tenant satisfaction.

Maintenance and Repairs

Quickly address maintenance issues and repair requests. Establish a system for Tenants to report problems and ensure that these issues are resolved promptly to maintain the habitability and safety of the rental property.

Accessibility

Make yourself or your property management team accessible to Tenants when needed. Provide clear contact information and establish communication channels for Tenants to reach out with questions or emergencies.

Proactive Management

Anticipate potential issues and take proactive steps to address them before they become major problems. Conduct regular inspections of the property to identify maintenance needs and address any issues promptly.

Follow-Up

After addressing tenant concerns or completing repairs, follow up with Tenants to ensure that the issue has been resolved satisfactorily. This demonstrates your commitment to tenant satisfaction and reinforces trust and goodwill.

Clear Policies and Procedures

Establish clear policies and procedures for Tenants to follow when reporting maintenance issues or seeking assistance. Ensure that Tenants understand how to contact you or your property management team and what to expect in terms of response times.

Empathy and Understanding

Show empathy and understanding towards Tenants’ concerns and situations. Building positive relationships with Tenants fosters a sense of trust and encourages open communication.

Overall, being a responsive Landlord involves being proactive and attentive to the needs of your Tenants.  Do that and you’re well on your way to fostering a positive rental experience and a well-functioning, financially stable rental property.

Landlord Mistake #3 – Lack of Proper Communication with Tenants

Lack of proper communication with Tenants can lead to a range of negative outcomes for Housing Providers, ranging from Tenant dissatisfaction and increased Tenant turnover to legal issues and financial loss. 

What do we mean by ‘proper communication’?

Using the right language and tone

So many issues and conflicts are caused by the intent and tone of a message being misconstrued by the Receiver.  Short, abrupt Text Messages, poor grammar and language barriers can often cloud the true intent of the message.

As a best practice, the Sender should reread the message and consider it from the viewpoint of the Receiver, then edit the message to ensure that it makes sense and has the right tone.

Using the correct Communication channel

Selecting the correct communication channel is also critical, not only for effective interactions with your Tenant, but also because the Residential Tenancies Act may specify that certain actions are communicated in a certain way.

Text Messaging can be a quick and convenient way to communicate with a Tenant but tends to be less professional.  In some cases, an email message or hard-copy letter by mail is more appropriate and might even be required by law (eg. serving Notices)

Responding in a timely manner

There is no hard and fast rule, but prompt response to a message is just good business and shows respect and empathy towards the Sender.

Why is proper Communication so important?

Tenant Satisfaction

Clear and effective communication helps in maintaining a positive landlord-tenant relationship. When tenants feel heard and understood, they are more likely to be satisfied with their living situation, leading to longer lease durations and lower turnover rates.

Issue Resolution

Good communication allows landlords to address any concerns or issues raised by tenants promptly. This can prevent minor problems from escalating into major disputes and helps in maintaining the property in good condition.

Legal Compliance

Landlords have legal responsibilities towards their tenants, as outlined in the Residential Tenancies Act, in terms of behaviour, responsiveness and how to serve Notices. Proper communication ensures that landlords fulfill these obligations in a timely manner, reducing the risk of legal disputes.  Learn about the most relevant clauses within the Act here.

Rent Collection

Clear communication about rent payment expectations, due dates, and accepted payment methods can help ensure consistent and timely rent collection. It also facilitates transparency, reducing misunderstandings and disputes related to rent payments.

Property Maintenance

Regular communication with tenants allows landlords to stay informed about any maintenance issues that need attention. Timely maintenance not only preserves the value of the property but also enhances tenant satisfaction and retention.

Emergency Situations

In case of emergencies such as fire, flood, or other disasters, effective communication protocols enable landlords to quickly communicate important information to tenants and coordinate necessary actions for their safety and well-being.

Feedback and Improvement

Open communication channels encourage tenants to provide feedback on their living experience, which can help landlords identify areas for improvement and make necessary adjustments to enhance the property and overall tenant satisfaction.

How to improve Communication?

Landlords can improve communication with tenants in several ways:

Establish Clear Channels

Provide tenants with multiple communication channels such as email, phone, text messaging, and a designated online portal for reporting issues or asking questions.

Be Responsive

Respond promptly to tenant inquiries, requests, and concerns. Acknowledge receipt of messages even if a resolution will take time, to reassure tenants that their communication is valued.

Regular Updates

Keep tenants informed about relevant information such as upcoming maintenance schedules, property improvements, or changes in policies. Regular newsletters or email updates can be effective for this purpose.

Use Technology

Utilize property management software or apps that allow for easy communication, maintenance requests, and rent payments. These platforms streamline communication processes and provide a centralized hub for tenant interactions.

Provide Documentation

When communicating important information or decisions, provide written documentation such as notices, letters, or emails to ensure clarity and avoid misunderstandings.

Be Transparent

Foster transparency by openly sharing information about rent increases, status of repairs, property inspections, and any other relevant matters that may affect tenants.

Listen to Feedback

Encourage tenants to provide feedback on their living experience and actively listen to their suggestions, concerns, and complaints. Address any issues raised and take appropriate action to improve tenant satisfaction.

Maintain Professionalism

Maintain a professional demeanor in all communications with tenants, even in difficult situations. Respect their privacy, confidentiality, and rights as renters.

Follow Up

After resolving an issue or addressing a concern, follow up with the tenant to ensure that they are satisfied with the outcome and to reinforce the importance of open communication.

By implementing these strategies, landlords can establish effective communication practices that enhance tenant satisfaction, promote a positive landlord-tenant relationship, and contribute to the overall performance of the rental property investment.

In this series of 8 articles, we explore the 8 biggest mistakes that we see Landlords make and how to avoid them.  Click on the links below to read the previous articles:

Landlord Mistake #1 – Selecting the Wrong Tenant

Landlord Mistake #2 – Not Running the Numbers

The Biggest Mistakes that Landlords Make

In this seven-part series, learn about the biggest mistakes that Landlords make and how to avoid them.

 

Mistake #1 – Selecting the wrong Tenant

The #1 key to success as a Landlord and real estate investor is finding a great Tenant that will pay the rent on time and take care of the property.  Plain and simple.

Finding that great Tenant is where the challenge begins.  Your Tenant screening process needs to be systematic and comprehensive, so that you can find the best of the best.

This may seem obvious, but you’d be surprised by how many Landlords take the short-cut and accept the first person that comes along.

Why does this happen?

    • They’re under financial strain and desperate to get the unit rented.

    • Lack of patience.
    • They don’t have the time for due diligence.

    • They don’t know how to properly screen a Tenant.

    • They don’t know what supporting documents to ask for.

    • The Tenant offers a lump-sum payment up-front as incentive, usually to overlook red flag on their application.

    • The Tenant was referred by a friend, acquaintance, or family member.

    • The Tenant offers to do repairs/improvements to the property, usually for a rent discount.

    • The rental unit is of low-quality and/or in a bad area.

    • They feel sorry for the Tenant’s situation and want to help them out.

    • They trust the Tenant on face-value, without doing the due diligence.

In most cases, things start out just fine, but eventually start to slip.  The Tenant starts paying late, then missing payments, then not communicating.  The Landlord doesn’t handle the situation properly and the downward spiral begins…

How do you avoid choosing a bad Tenant?

This whole situation could have been avoided by doing the due diligence (aka Application Process, Background Check, Tenant Screening, Vetting Process), no matter where the candidate came from or what their story is.  It doesn’t matter if they were referred to you by a co-worker or family member, always run them through a vetting process.  It doesn’t matter if the Tenant entices the Landlord by offering to pay for one year up front (happens all the time and is a major red flag!), do the due diligence.

This might seem extreme and uncomfortable in some cases, but owning a rental property should be ran like a business.  Your rental business.  And like any business, it depends on consistent revenue to make it work.  You’re also handing over a property worth hundreds of thousands of dollars to a stranger.  You need to make sure that the person taking possession of your valuable asset is qualified and trustworthy and that you feel good about it (that Gut-feeling).

What’s the best way to screen a Tenant?

    • Create good-quality Ads with nice photos.

    • A reasonable Rental Rate, based on market conditions – not too high, not too low.

    • Meet the Candidate in-person and get a feel for them.

    • Ask questions to uncover their story – what’s their history, why are they looking to rent your unit, who will be living in the unit.

    • Listen to your Gut – you’ll have a nagging feeling if something isn’t right.

    • Have them fill out an Application.

    • Request Supporting Documents, including Credit Report, Job Letter and recent Pay Stubs, Photo ID.

    • Check References, especially their Employer.

    • Social Media checks – how they behave on Social Media says a lot about a person.

    • Social Media checks on their References, especially their Employer and Supervisor.

    • Confirm Credit Score on platforms such as Front Lobby and SingleKey – Credit Reports can be easily falsified.

What ‘Red Flags’ should you be looking for?

    • Inconsistent, missing or false information.

    • Dragging their feet on giving you the information that you requested.

    • Not being able to find them or their employer on Social Media.

    • Employer not calling you back for a reference check.

    • Not providing previous Landlord contact information.

You also want to assess:

    • Their ability to pay – do they have enough income to cover their expenses?

    • Will they be a good fit for you, the rental unit and other Tenants (in a multi-unit building)?

In the end, you want to feel good about having the Applicants move into your property.  You want to select someone who you feel that will be a pleasure do deal with on a day-to-day or monthly basis.  You also want someone who’s not going to be overly needy or helpless, as that will eventually be drain on your time and energy.

Want to learn more about the process we use at East Vista to find great Tenants for our Clients? Click HERE to read this informative article.

 

The Ontario Standard Lease – What you need to know!

What is the Ontario Standard Lease Agreement?

A standardized form of lease, mandated by the Ontario Government for most residential lease agreements in Ontario.  The clauses within the lease are aligned with the Residential Tenancies Act.

What you should know about the Ontario Standard Lease Agreement:

  • It’s mandatory for residential leases signed after April 30, 2018.
  • The Tenant must receive a signed copy of the lease within 21 days of signing.
  • The OREA Agreement to Lease (Form 400), used if you advertise the property on MLS through a Realtor, is not a valid form of Lease in Ontario.  It must be accompanied by the Ontario Standard Lease.
  • Additional terms can be added to the agreement, as long as the terms do not contravene the Residential Tenancies Act.

Why is a standardized lease agreement a good thing?

  • Reduces confusion and misinterpretation often associated with tenancy law.
  • Reduces risk for Landlords by keeping them compliant with tenancy law.
  • Protects Tenants against unlawful lease clauses.
  • Clarifies obligations and responsibilities of Landlords and Tenants alike.
  • Provides an easy-to-use, legally compliant Lease Agreement for small Landlords.

The Ministry of Municipal Affairs and Housing publishes a comprehensive guide to the Ontario Standard Lease.  It’s a quick read and provides loads of valuable information about key clauses within the lease agreement and the associated legislation within the Residential Tenancies Act.  In our opinion, the guide should be required reading for Landlords and Tenants alike! 

Overview of Key Sections of the Lease Agreement

Section 3 – Contact Information

Landlords and Tenants can agree to send and receive notices by email, where permitted by Landlord and Tenant Board rules.

Section 9 – Key Deposit

Landlords are permitted to collect a refundable Key Deposit.

Section 10 – Smoking

Ontario law prohibits Smoking in common areas, but not individual units.  Smoking rules for individual units must be added to the Lease by the Landlord and agreed to by the Tenant.

Section 11 – Tenant Insurance

The Landlord can require that liability insurance is obtained by the Tenant.  The Tenant must provide proof of coverage if requested by the Landlord.  Obtaining content insurance is optional for the Tenant.

Section 12 – Changes to the Rental Unit

Tenants are permitted to make minor alterations, such as hanging pictures and window coverings, but must have Landlord approval for any other alteration.

Section 13 – Maintenance and Repairs

This section explains that the landlord must maintain the rental unit and property, but the tenant must repair or pay for any undue damage caused by the tenant or their guests. The tenant is responsible for keeping the unit clean, unless the landlord agreed to do so.

Section 14 – Assignment and Subletting

This section explains that the tenant needs the landlord’s permission to assign or sublet the unit to someone else, and that the landlord cannot arbitrarily or unreasonably withhold consent.

Section 15 – Additional Terms

The Landlord and Tenant can agree to additional terms not covered in the Ontario Standard Lease, assuming:

Any additional term which attempts to take away a right or responsibility under the act is void (not valid or legally binding) and cannot be enforced. Some examples of void and unenforceable terms include those that:

  • Do not allow pets (however, the landlord can require the tenant to comply with condominium rules, which may prohibit certain pets.)
  • Do not allow guests, roommates, any additional occupants Part 1: Sections of the standard lease 8.
  • Require the tenant to pay deposits, fees or penalties that are not permitted under the act (for example damage or pet deposits, interest on rent arrears).
  • Require the tenant to pay for all or part of the repairs that are the responsibility of the landlord.

Additional terms should be written in plain language and clearly set out what the landlord or tenant must or must not do to comply with the term. If typed, the additional terms should be in a font size that is at least 10 points.

We would suggest having your ‘Additional Terms’ vetted by an experienced Paralegal, to ensure that they do not contravene the Ontario Residential Tenancies Act.

Landlords and Tenants alike should get to know the Ontario Standard Lease, as it forms the foundation of the Landlord/Tenant relationship.  You can download the agreement and guide below:

Download the Guide to the Ontario Standard Lease here:

https://files.ontario.ca/mmah-guide-to-standard-lease-for-rental-housing-en-2022-04-19.pdf

Download the Ontario Standard Lease here:

https://www.ontario.ca/page/guide-ontarios-standard-lease

How to find a great Tenant

Finding a great Tenant has become a daunting and stressful task for many Landlords.  

With the advent of social media and online forums, we are constantly bombarded with stories of rent arrears, long LTB delays, Cash for Keys, overcrowding and property damage.  These stories have almost become urban legend and invoke fear in the hearts of even the most seasoned Landlord.

The thing is, we only hear the horror stories, not the good news stories.

Finding a great Tenant is not always easy, but it’s not as difficult as some would lead you to believe.  Tenant recruitment and selection has many dimensions, so is more a matter of following a process and doing the due diligence without cutting corners.

One thing that you might not realize is that your Tenant selection process starts way before you even post an Ad or do a showing.

So, where do you start?

The Tenant Selection Process Simplified

1.  Who is your ideal Tenant?

The whole process starts with articulating a clear vision of your ideal Tenant, aka your Ideal Tenant Profile.

Who are you trying to attract?  Who would be best suited for the property?  What do they do for a living?  How many people are you looking for?  How many vehicles do they have?  Do they have pets?

Create a written description and use it as a guide during your recruitment and selection process.  Use your clear vision to write Ads that appeal to your ideal Tenant or Tenants (you can have more than one Ideal Tenant Profile).  Compare every application that you receive against your profile and stick to it.

2.  Offer a great product

Your Property is your Product and the Tenant is your Customer. If you put a low-quality Product on the market, you’ll attract a low-quality Customer.  

Buy a great house in a great area and the great Tenants will line up at your door.  

Same holds true for Maintenance.  A well-maintained Property will attract Tenants that want the same.

3.  Price as a Filter

Do your research to determine the rental price range for your property and area, then start your pricing at the top of the range.  A higher price will deter most semi-qualified candidates and make your job much easier.  Reduce the price incrementally, depending on response to your advertising.  Ultimately, the market will determine the rent, but you will avoid wasting time with unqualified applicants.

4.  Create great Ads

Your goal is to generate as much awareness about the property as possible.  At the time of this writing, Facebook Marketplace is a highly effective method of reaching the rental market.  MLS (Realtor.ca) is also an option, which expands your market exposure, but at a higher cost.  High-quality lawn signs can also be effective, depending on the location of the property.

In terms of information about the property: More is Better!  Nothing is worse than looking at a property listing that tells you absolutely nothing about the property.  It’s an indicator of a lazy, low-quality Landlord.  What kind of Tenants do you think this will attract?

High quality photos are critical and a video walk-through can be effective as well.  An effective advertising strategy is to publish 2 versions of your ad: one that lists the point-form features of the property, and one that describes the benefits of the property.  Each version will appeal to readers differently.

Include a line of text at the bottom of the Ad stating: “First and Last Month’s Rent, Credit Check, proof of Income and Photo ID required”.  This will instantly discourage less-qualified candidates from responding.

Keep it Legal.  Your ads should not discriminate in any way and cannot include any requirements that contravene the Residential Tenancies Act (e.g. ‘No Pets’).  Doing so just looks unprofessional and can be a deterrent for your ideal Tenant.

Make it easy for potential tenants to get in touch with you.  If you are comfortable, provide a phone/Text number and email address within the text of the Ad.

5.  Respond quickly to enquiries

It’s important to stay on top of your Ad responses and contact the potential candidate as soon as possible, meaning minutes or hours, not days.  Their interest in your property is fleeting, as they might also be responding to 20 other Ads.  You’ll find that about 30% of incoming inquiries will go nowhere, as they have likely made contact with another Landlord by the time that you reply and you will not hear back from them.

If possible, try to make verbal contact or at least correspond by text with the candidate if they messaged through social media.  This increases your chances of booking a showing and you can also tell a lot about the candidate by their mannerism on the phone or through text message (another filter!).

6.  Pre-screen Candidates for Showings

If your property is likely to garner a flood of interest, then you should consider pre-screening the candidates before showing them the property.  This will save everyone a huge amount of time and effort.  No point in showing someone the unit if they don’t meet the criteria from your Ideal Tenant Profile.  It’s all about efficiency and you need to focus on the most-qualified candidates.

One of the easiest and most effect pre-screening tools is a Google Forms questionnaire.  Once you create the questionnaire, embed a link in your Ad copy, with a short sentence saying that the candidate must fill out the form to request a showing.  Learn more about Google Forms here: https://www.google.ca/forms/about/

7.  Conduct Showings and establish rapport

In our opinion, the in-person meeting, aka Showing, is one of the most critical pieces of the Tenant selection puzzle.  Without being overbearing and intrusive, you should strive to establish a rapport with the candidate and facilitate a friendly conversation.  This will put the candidate at ease and encourage the flow of information.  As you build trust, they will open up and offer more insight into their story and character.  Most often, you’ll get a gut feeling about the candidate during that first meeting.  If you have a bad feeling about the candidate, pay attention, as that first gut feeling is usually correct.

8.  Application and supporting documents

If a candidate wants to proceed with renting the property, the next step would be to have them fill out an application and submit their supporting documents.

You should request:

  • A Rental Application – filled out completely, without missing information
  • Photo ID of all Leaseholders
  • Proof of Income – recent Pay Stubs and/or Job Letter – for all Leaseholders
  • A recent Credit Report – PDF version (no screenshots), one for all Leaseholders

This is where the process can bog down.  You’ll encounter many applicants that are not IT savvy and can have challenges with obtaining and sending documents.  You’ll also encounter applicants that don’t have the documents readily available, even though your Ads clearly state that they are required.  Navigating this can take some patience, as it can be a lot of back and forth until you have everything that you need.  (One note: the fact that it’s so difficult to get the documents from them can be a red flag and an indication of what it will be like to deal with them as Tenants).

9.  Do-do-do the Due Diligence

Once you receive all of the requested documents, then the work begins.  The due diligence phase is the most important part, as it’s your last line of defence against all the horrors that you read about on social media.

This seems obvious, but you’d be surprised by how many Landlords take the short-cut and accept the applicant on face value.  There are many reasons that they do this:

  • They’re under financial strain and desperate to get the unit rented.
  • They don’t have the time for due diligence.
  • They don’t know how to properly screen a Tenant.
  • They don’t know what supporting documents to ask for.
  • The Tenant offers a lump-sum payment up-front as incentive, usually to overlook red flag on their application.
  • The Tenant was referred by a friend, acquaintance, or family member.
  • The Tenant offers to do repairs/improvements to the property, usually for a rent discount.
  • The rental unit is of low-quality and/or in a bad area.
  • They feel sorry for the Tenant’s situation and want to help them out.

In most cases, things start out just fine, but eventually start to slip.  The Tenant starts paying late, then missing payments, then not communicating.  The Landlord doesn’t handle the situation properly and the downward spiral begins…

This whole situation could have been avoided by doing the due diligence (aka Application Process, Background Check, Tenant Screening, Vetting Process), no matter where the candidate came from or what their story is.  It doesn’t matter if they were referred to you by a co-worker or family member, always run them through a vetting process.  It doesn’t matter if the Tenant entices the Landlord by offering to pay for one year up front (happens all the time and is a major red flag!), do the due diligence.

This might seem extreme and uncomfortable in some cases, but owning a rental property should be ran like a business.  Your rental business.  And like any business, it depends on consistent revenue to make it work.  You’re also handing over a property worth hundreds of thousands of dollars to a stranger.  You need to make sure that the person taking possession of your valuable asset is qualified and trustworthy and that you feel good about it (that Gut-feeling).

So, what’s the best way to screen an applicant?

  • What’s your impression after meeting with them in-person for a showing?
  • Call References, especially their Employer.
  • Social Media checks – how they behave on social media says a lot about a person.
  • Social Media checks on their References, especially their Employer and Supervisor.
  • Confirm Credit Score on platforms such as Front Lobby and SingleKey – Tenant-provided Credit Reports can be easily falsified – happens all the time.

Through all of these checks, you should be looking for ‘Red Flags’, such as:

  • Inconsistent, missing or false information.
  • Dragging their feet on giving you the information that you requested.
  • Not being able to find them or their employer on social media.
  • Employer not calling you back for a reference check.
  • Not providing previous Landlord contact information.
  • Mismatched fonts on pay stubs or other documents.

You also want to assess:

  • Their ability to pay – do they have enough income to cover their expenses?
  • Will they be a good fit for you, the rental unit and other Tenants (say, in a multi-unit building)?

The graph below is not overly scientific, but it shows where we focus most of our efforts during the due diligence process.  In most cases, the information and documentation that the applicant provides are legitimate, but it’s important that you double-check through your own validation process.  Rental Fraud is becoming more prevalent and sophisticated due to the advent of technology, so it’s good to develop a process to reduce the chances of being scammed.

9.  Make a decision with confidence

If you’ve taken the time to assemble the appropriate documents and check their validity, then your decision will likely be easy.  You should also have a good feeling about the applicant after meeting with them in-person and dealing with them through the application process.  As I mentioned before, be aware if you have a nagging feeling that something isn’t quite right.  Trust your gut…it’s called intuition and it’s usually right.

Your ultimate goal

At the end of this process, you want to feel good about the choice that you’ve made.  You want to select someone who will be a pleasure do deal with on a day-to-day or monthly basis.  You want someone who’s not going to be overly needy or helpless, as that will eventually be drain on your time and energy.  You want a stable Tenant that will provide stable income for you.

To accomplish this, you need to trust yourself and trust the process.  Put in the work of checking the facts and listen to your intuition if something doesn’t seem right.