Introduction

Renting out a unit can be both profitable and rewarding when done correctly. A lease agreement is not the only thing that is worth paying a lot of attention to. Before signing the agreement, you need to inspect and clean the unit, screen tenants, and carefully review the lease agreement. These are the steps that matter for a successful and stress-free rental experience.  

Before renting out a unit, it is important to prepare not only the lease agreement but also the property. This ensures a smoother rental process and reduces future problems and disputes over the rented unit. Here’s the recommended checklist of what to do before renting out a unit.

Inspect every part of the property. Check if there are any cracks in the walls, floor, or ceiling. Test all the faucets, showerheads, and toilets for leaks or water pressure issues. If possible, also inspect under sinks for signs of moisture or mold.

Ensure all electrical outlets work properly and that there are no exposed wires. Also, check the circuit breaker so that it functions correctly. Don’t forget to check the heating and cooling system so that it works well and has clean filters and clear vents. If it is a house, also inspect outside of it: roof, gutters, and outside walls.

 Clean Thoroughly 

A neat and clean unit is more appealing to your future tenants. Moreover, it sets a standard for how you expect them to maintain the unit. Floors should be vacuumed. If there are any mops or carpets, they need to be professionally cleaned and have no odors or stains. Windows need to be washed (inside and out). The tracks and frames should also be dusted.  

Home appliances such as oven, refrigerator, microwave, and dishwasher should also be perfectly clean. Also don’t forget to sanitize bathrooms and kitchens. If there is any odor from pets or smoke, try to neutralize it.

Make Necessary Repairs 

If you repair what’s broken before your tenants move in you will avoid emergency calls in the future. If there are any leaks or broken fixtures, fix them. To improve the appeal of the unit, if possible, upgrade faded paint or old carpets. If in the unit there are loose railings, uneven flooring, or faulty locks, resolve them to prevent accidents and avoid issues.

Tenant Screening Before Signing a Lease Agreement 

Before signing a lease, it is a good idea to screen your future tenants. This means you can screen your tenant’s credit history. With this, you can identify responsible and trustworthy tenants who will likely pay rent on time and take care of your property. This will create a positive rental experience and will help you avoid costly mistakes and disputes.  

However, please note that for conducting a tenant credit check, you need their personal information (full name and date of birth). As well as that, you will need their permission (in written form) to run the credit check. Without getting their permission the you can’t conduct a credit check.

For this tenant credit check by royalinvest.ca can be a game-changer. It helps you quickly access a clear, easy-to-read credit report and automates the tenant consent process.  

Key Clauses to Double Check in the Lease Agreement

One of the most important aspect of the process of renting out a unit is the rental agreement. It is more than a formal document, it regulates the whole  renting process. It also sets clear rules and obligations for both parties for the entire tenancy. Thus, overlooking important clauses can lead to misunderstandings and disputes. This means that before you and your tenant sign the lease agreement, it would be a good idea to review the following key areas carefully.  

Lease Agreement Term 

The term of the lease agreement defines the start and the end dates. Ensure the dates  are correct and that the rental agreement specifies whether it is a fixed-term or a month-to-month arrangement. Once the dates are set correct, both landlord and tenant can plan ahead and avoid surprises.

Rent Amount and Due Dates 

This section in the lease agreement states the exact amount of rent. It also includes the due date and the accepted payment methods. Precise rent terms protect your right to get payments on time. On the other hand, this sets clear responsibilities for your tenant. 

Maintenance responsibilities 

Maintenance clauses outline responsibilities of each party. This section of the lease outlines the landlord’s duties and the tenant’s responsibilities. Being detailed in this section prevents disputes and misunderstanding. 

Annexes and attached documents 

If there are any additional rules, policies, or regulations, you should add them to the main lease agreement as annex. This may include pet, parking, or smoking policies, building regulations, and other clauses that were not discussed in the main lease agreement. Annexes should also be signed by both parties.  

Online vs. Offline Lease Agreement: Which Should You Choose? 

In Canada, especially in Quebec, landlords have two options to finalize their rental agreements: Online and offline lease agreements. Both versions of lease agreements are legally valid as long as they meet the requirements set by the bodies that regulate renting processes. In Quebec, it is Tribunal administratif du logement (TAL), in British Columbia and Ontario, it is a Provincial Attestation Letter (PAL), and so on.  

An offline lease agreement means that you need to get a paper copy, fill it out by hand, and sign it in person. Many landlords an d real estate agents use this method as it doesn’t require any tech knowledge.  

On the other hand, there are online lease agreements that are more flexible. Online lease agreements are the same official lease agreements as the paper ones, but you complete and sign them online. Besides creating and signing an agreement, platforms like royalinvest.ca also guide each party through the signing process. This ensures that fields are left blank and all required signatures are captured.  

Moreover, you can also track the signing process and download a certificate of completion once the rental agreement is finalized.

Which Type of Lease Agreement Should You Choose 

If you are convenient with digital tools and value speed, convenience, and hassle free lease management, than online lease agreements are the best choice for you . This is especially true for those who manage multiple units and have a lot of lease agreements to manage.  

Despite the convenience of online lease agreements, there are those who still rely on offline lease agreements. Ultimately, the best choice depends on you and your tenant’s comfort level, and how quickly you need to sign the lease agreement.

Common Mistakes Landlords Should Avoid Before Signing a Lease Agreement

Not Revising Lease Agreement 

As I have noted, revising a lease agreement is very important. There may be typos or errors that can lead to disputes and misunderstandings. To avoid this, carefully check every section of the rental agreement. Pay close attention to the important clauses and make sure that the information is correct

Relying on Verbal Agreements 

It is true that handshake deal is more friendly and efficient. However relying only on a handshake  and a verbal agreement is not a good choice. If something goes wrong you will have no written proof of you have agreed upon.  

Think about a situation when you and your tenant verbally agreed upon some maintenance responsibilities that should be held by your tenant. However, something goes wrong and now you have no proof of what you have verbally agreed upon. This situation leads to disputes and causes a lot of stress. Yet we want to avoid stressful situations as much as possible right? Thus, put everything that you agreed upon in your agreement.

Skipping Tenant Screening 

If possible, try not to skip tenant screening. Skipping tenant screening may lead to problems with late rent payments, property damage, or even eviction. You can use tools like Tenant Credit Check to screen your tenant’s credit background (with the tenant’s written consent).

Not Documenting the Property’s condition 

Not documenting the property’s condition before your tenant moves in can cost you at the end of the lease. It will be hard to prove whether damage occurred during the tenancy or not if you don’t have  a move-in inspection report. To avoid this situation, conduct an inspection with the tenant. Take dated photos or videos and sign the report once it is ready.  

Conclusion 

To sum up, successfully renting out a unit is not only about signing a lease agreement; it also includes some actions. Inspecting and repairing the unit before renting it out  ensures that the property is safe and the tenants are content.  However, reviewing key clauses  in lease agreement, screening your tenants and documenting every step is also crucial.  

Whereas using modern tools, such as royalinvest.ca, to manage your lease agreement and screen your tenants can simplify the process and save you time.