Managing Properties or Renting Out Properties ~ Check out the Tenant
If you are a real estate agent looking to either manage a series of properties for clients, or just renting out one single property, then you will have to check the prospective tenant’s credit history.
Here is a quick summary of a recent discipline case:
Date decision released: March 28, 2013
Summary of findings:
• Failed to take reasonable steps to determine whether an apartment conformed to
city zoning by-laws and/or retrofit requirements, and advise the landlord of the
risks of leasing an apartment in contravention of by-laws.
• Failed to adequately research the credit history of both tenants before executing
the Agreement to Lease on the landlord’s behalf.
• Failed to obtain a credit report on one of the tenants.
• Failed to obtain independent income verification for the tenants.
By way of an Agreed Statement of Facts and Penalty and Waiver of Hearing ratified by
the Chair of the Discipline Committee, Mr. Smith was ordered to pay a fine of $8,000
and to successfully complete OREA’s “Land, Structures and Real Estate Trading”
course by September 18, 2013.
In these cases, I will use a fictitious name, since the registrant’s real name is not important. But, the principle is.
So, in this case, we have an $8,000.00 fine. That’s serious money.
You will see that there were two tenants, and it was only one tenant who gave rise to the problem. The other tenant presumably met the appropriate criteria. This means, if the tenancy is to be in the names of both the husband and the wife, then, they both need to be checked, not just one person.
Here’s a link:
If you are a member of OREA, you can obtain a report dealing with:
- Credit report
- Rental history
- Credit scoring
- Fraud detection
From Rent Check for $20.75 plus HST.
Brian Madigan LL.B., Broker