Seeking reliable tenants for your property is becoming a great challenge for property owners due to recent economic changes in Ontario, Canada. Rental scams are rising and becoming more advanced every day, thus making it harder for property owners to screen tenants properly. Such rental scams may include providing false information, not paying rent, using a rental property for business purposes, sneaking in unauthorized tenants, and other unlawful activities. These rental scams can cause a huge financial loss to the property owner, such as non-payment of rent, property damage, prolonged legal disputes, and considerable stress. Therefore, it is essential to thoroughly screen your tenants before they move in.
Failure to properly screen tenants can result in leasing properties to individuals who are not financially stable, have a history of damaging properties, or have a track record of not paying rent. These risks can lead to significant financial losses, such as repair costs, legal fees, and lost rental income due to unpaid rent. Legal issues can also arise, including lengthy disputes at the Landlord and Tenant Board, during which landlords may not receive any rent, leading to financial difficulties.
To avoid rental scams and prevent financial losses, it is crucial to work with a company that has extensive experience in the property management industry and thorough tenant screening processes, like Royal York Property Management, which has leased and managed over 22,000 rental properties across Ontario, Canada, valued at over $10.1 billion. With almost ten years of experience screening hundreds of thousands of tenants, Royal York has developed a strong tenant screening process to protect owners’ financial interests.
Royal York Property Management is so careful with who they let into your rental property because they are willing to guarantee the tenant’s rent, unlike a real estate agent or any other property management company. Suppose the tenant defaults on the rental payment during the term. In that case, Royal York Property Management will continue to pay the rent, cover associated legal costs court and sheriff fees, and replace your tenant free of charge. Their thorough tenant screening process, including employment verification and background checks, significantly reduces the likelihood of encountering problematic tenants. These measures give owners peace of mind, knowing their investments and rental income are secure.
Common Tenant Scams to be Aware of
Tenant scams can be a source of headaches for landlords. Some tenants never intend to pay rent, initially appearing like good prospects only to stop paying altogether. Others may illegally rent the property to third parties or sneak in unauthorized occupants, posing safety and compliance issues. Scammers might also overpay using a cheque that will bounce when cashed and then ask for a refund of the excess before the cheque bounces.
Thorough tenant screening protects property owners from economic and fraudulent instances. Owners can avoid unpaid rent, property damage, and legal disputes by thoroughly verifying tenant identities, employment, financial stability, and rental history. This approach ensures only reliable and trustworthy tenants are selected, safeguarding owners’ investments and financial interests.
How Does Royal York Property Management Protect Owners From Rental Scams?
Royal York Property Management utilizes rigorous verification processes to prevent rental scams and protect property owners. Their process starts with verifying all government-issued IDs to confirm the tenant’s identity. Employment verification is crucial, involving cross-checking employment references with LinkedIn profiles and directly contacting the listed employers. They require a verifiable reference, such as an HR representative, to ensure accuracy and legitimacy.
Lastly, they assess the financial stability of potential tenants by reviewing recent pay stubs, bank statements, vehicle ownership, and tenant insurance with a minimum coverage of $2 million. However, with recent technological advancements, Royal York Property Management has found it necessary to further enhance its tenant screening process to ensure greater reliability and security. Royal York Property Management conducts criminal background checks in-house and reviews applicant credit reports, which include FICO scores, to further assess tenant reliability. This comprehensive screening system ensures that only trustworthy and financially stable tenants are selected, significantly reducing the risk of rental scams.
One of the recent features that Royal York Property Management has implemented includes confirming that tenants transfer utilities to their name, ensuring added accountability. Additionally, references from previous landlords and character references are thoroughly checked to select only the most trustworthy and financially stable tenants. This enhanced system is supported by a dedicated team of specialists who focus on these critical services, ensuring attention to detail and providing landlords with added security and peace of mind.
Consider the financial impact: while hiring a professional property management service may cost one month’s rent, failing to place the right tenant can result in much greater losses. Without proper screening, owners might face unpaid rent for an entire year or even two years, amounting to tens of thousands of dollars. Additionally, property damage caused by unreliable tenants can lead to repair costs in the thousands, further compounding financial losses.
Royal York Property Management is committed to setting industry standards for safety and reliability in tenant screening and selection. Royal York’s robust screening processes and contractual protections provide owners peace of mind and secure rental income. By investing in professional tenant screening, owners can avoid significant financial and legal troubles, ensuring their properties and finances remain protected.
Published by: Holy Minoza
