Imagine browsing AirBnb and coming across your own apartment. This was the shocking reality for one Toronto landlord who discovered that her condo unit was being sublet without her knowledge on the popular booking site.
The landlord reached out to her tenant who initially claimed she had no idea but later told CBC Toronto that she had rented out the unit when she was out of town, conspiring with her boyfriend to list it online and pocket the proceeds.
When the landlord uncovered the scheme, she began eviction proceedings but said the tenant then demanded thousands of dollars in return for leaving within the week – knowing that delays at the Landlord and Tenant Board could drag out the eviction for months and taking advantage of the landlord’s frustration.
Tenant disputes, contract violations, legal proceedings – cases like this are a landlord’s worst nightmare. The best defense against problematic tenants is knowing your rights, putting the proper protections in place, and getting professional help.
What are the rules on short-term rentals in Toronto?
It’s worryingly easy for a tenant to list their apartment as a short-term rental. They just need a short-term rental registration number from the City of Toronto – easily obtained if they pay a $50 registration fee and show proof that the unit is their principal residence. Some applications are approved automatically, making it even easier for bad actors to slip through the net.
Generally leases protect against sublets, but if you want to strengthen your case, you can write a clause that specifically prohibits your tenants from posting apartments on AirBnB and similar short-term rental platforms. When amending your lease in this way, it’s a good idea to consult a lawyer first – this will give you peace of mind that the new clause is legally binding and will stand up in court if it comes to that.
You’ll definitely need legal counsel if you want to add that provision mid-lease as amending an existing contract before the lease expires is always more difficult than creating a new one.
The importance of tenant screening and vetting
In the above example, the unlucky landlord thought she’d found the ideal tenant. She obtained personal references, ran a credit check report, and was especially comforted when the woman claimed to be a landlord herself. By the time she realized her mistake it was too late.
It’s always much more difficult to evict a bad tenant than to turn one away before they move in. That’s why our team at Highgate Property Management offers professional tenant vetting and screening services.
These services include thorough checks of all documentation to catch any forged or inaccurate references your prospective tenant may provide. We also conduct independent credit scores, verify employment history, and even screen your applicant’s social media history for any red flags.
Running these kinds of checks isn’t just a matter of ticking off all the boxes. They give us – and you – an indication of the kind of person who’ll be occupying your unit. Will they pay their rent on time? Will they respect your property? Will they behave appropriately with you and neighbors?
It’s always better to be safe than sorry, taking a proactive approach to find a reliable tenant that’s interested in a mutually-beneficial long term relationship. Our screening services offer peace of mind, from the moment you find your tenant through to any issues that may arise such as repairs, property maintenance, and rent collection. Get in touch with our team today to find out more.