Hi everyone! Britt Huggins here doing another guest blog for Danielle in the City, Toronto Real Estate Agent. With the shift in the real estate market, we have seen the number of rental requests increase. I thought this would be a good opportunity to walk our readers through the tenant/rental application process and what a landlord wants to see from a tenant. Let’s get to it:
1. Credit Check / Credit Report:
In almost all cases, a landlord will ask to see a tenant’s credit history. This is to help qualify a tenant and understand the likelihood that they will pay their rent and pay it on time! A credit report will also give the landlord other key financial information by showing the history of the tenant’s borrowing and repayment of debts. To get your credit report, you can visit TransUnion or Equifax.
2. Letter of Employment:
An employment letter (letter of employment) is a short, simple, letter that confirms your work history, salary and job title. You should have no trouble obtaining this by asking your supervisor or human resources department. This is not to be invasive, but to allow your landlord to understand that your salary will cover your rent. In most cases, as a rule of thumb, your salary should be at least 2.5 times the amount of your rent (when looking at your monthly salary).
3. Pay Stubs:
Every time you get paid (whether it is via cheque or direct deposit), you will receive a slip that determines the amount that you have been paid for that pay period, what you have been taxed and the amount earned year to date. Again, as a rule of thumb, your salary should be 2.5 times the amount of the monthly rent.
4. Rental Application:
A rental application is another tool that a landlord uses to qualify a tenant. It includes the tenants personal information such as name, birthday, address, SIN, drivers license, occupation, place of employment, salary, landlord references, personal references, license plate and approval for a credit check. If you are interested in viewing the OREA rental application, click here.
5. Tenant Insurance:
While damage to the building is covered by the landlord’s insurance, damage to a tenant’s belongings and personal property is covered by tenant insurance. In most cases your landlord will want to see proof that you have registered your tenant insurance. You can obtain this through your bank, Co-operators, Bel Air Direct, PC Insurance, or just Google it and shop around for quotes.
6. Refundable Key Deposit:
When it is time to pickup your keys for your rental home, you will (in most cases) need to provide the landlord with a refundable key deposit. Don’t lose your keys, fobs or garage door openers people! As long as you don’t lose the keys, you will get your deposit back when the lease comes to an end.
If you are working with a real estate agent, there is further paperwork that your realtor will take care of such as a lease agreement, a Residential Tenancy Agreement (Standard Form of Lease), schedule B, etc. These are all things that will be handled on your behalf when you are working with a real estate agent.
If you or anyone you know are interested in renting, please feel free to give me a call at 647-863-7234.