Residential/Commercial Tenant Background Checks - YouTube

This is a "Let's Talk" episode about Residential and Commercial Tenant Background Checks presented

to you by Onyx Investigations and Security.

Welcome.

This is a short video outlining the importance of obtaining professional Background Checks

of your Residential or Commercial tenants.

This video is ideal for Landlords who are renting residential properties (such as single-family

homes and multi-unit dwellings), Property Managers who are responsible for residential

& commercial properties, and Home-owners who are thinking about renting part of their home

(such as a basement apartment).

Although the following information will be useful regardless of where your property is

located, it is given from the perspective of properties within Ontario, Canada.

We will start with "What is a Background Check?", we will review several reasons why it's important

to obtain background checks on potential tenants, we will review the differences between obtaining

this information yourself or hiring someone to do it for you, and look at several resources

and links (which will be most useful for those of you located in Ontario).

What is a Background Check?

A Tenant Background Check (or Tenant Screening) is the process of getting additional information

about a tenant prior to signing a lease with them.

(We'll get back to that key word "prior" a little later on.)

Tenant Background Checks are similar in nature to Employee Background Checks and are obtained

to ensure that the Tenant is who they claim to be, that the information provided in the

tenant application is accurate and as complete as possible, that the cost of the rental is

within the tenant's financial means, and that there is no criminal history of concern.

Tenant Background Checks are important and valuable to you as a Landlord for a number

of reasons.

[Please note that we will be using the word "Landlord" to refer to anyone responsible

for finding a tenant.]

It's a great chance to actually get to know your potential new tenant and add a personal

touch to the process.

Background Checks also help to identify what is referred to as "Professional Tenants" -- tenants

that are habitually disruptive and manipulate the law to their advantage in order to avoid

paying rent, avoid paying for damages, refusing to vacate after being served with eviction

notices, and more.

Thoroughly checking the tenant's application helps in identifying false information, partial

truths and past legal issues with previous landlords.

If a tenant has tendencies towards being destructive, disruptive or just willfully difficult, the

outcome of their actions can lead a Landlord to being liable for expensive repairs, loss

of other tenants, insurance claims and more.

The process of conducting a background check also allows the Landlord to be made aware

of any potential issues early on which can be dealt with as soon as possible.

No one like surprises!

Believe it or not, a Background Check is important for your potential (and existing) tenants

as well.

Going the extra mile to ensure that you find the best tenants possible let's your existing

tenants know that you care what type of people live there.

It demonstrates that you are embracing your responsibilities as a Landlord and that you

are endeavouring to create an environment where your tenants want to stay.

(hopefully forever!).

Your thoroughness establishes you as a Professional and is the first step in creating Trust between

you and your potential new tenant.

Remember earlier when we emphasized the word "Prior"?

Well, the most important reason why a Background Check is essential is because it's too late

to "just change your mind" about a tenant after they've signed the lease.

For examples of legitimate reasons to evict a tenant, refer to online sources such as

the PDF document "How a Landlord Can End a Tenancy" provided by the Landlord and Tenant

Board of Ontario.

(we'll provide this link again towards the end of this video.)

A basic Background Check can be a do-it-yourself task.

Make sure you have a comprehensive tenant application and that it is filled out completely

by the tenant.

Call any previous Landlords if there are any, remembering that the tenant could have owned

their previous residence.

Call the tenant's current employer to confirm their employment status or otherwise verify

their income if they are, for example, self-employed, and always contact their references (you should

be asking for 2 or 3).

Also very important is to get the tenant's permission (in writing) to check their credit

history.

There is ample credit information that can be discovered in the United States, for example,

but in Canada, Privacy Laws greatly restrict how and what information can be obtained and

how it is to be stored in order to maintain confidentiality.

Other than just not wanting to do this leg-work yourself, there are other reasons why it may

be in your best interest to outsource this task.

When you call a tenant's references or previous employers, it's not always enough to just

ask the right questions -- you also need to ask the questions the right way.

There are "tricks in the trade" to phrasing questions to better determine if the other

person is being completely truthful and ways to avoid asking "leading questions".

Performing a thorough check and being able to put all the pieces together better identifies

any "red flags".

As a Landlord, you're probably busy with running your business and you may also have another

job that takes up the bulk of your time.

Through no fault of your own, you may not have the time to dedicate to a thorough Background

Check.

And depending upon your level of experience as a Landlord, it may be difficult to remain

completely impartial throughout the process.

Outsourcing the Background Check process can also allow more time to review the tenant's

Social Media footprint.

Depending upon the situation, this can be a valuable source of information for both

Residential and Commercial tenants.

Some information may not be accessible by the general public and requires special access

as granted by either a governing body or businesses with permission to provide confidential information.

This type of information is strictly guarded by Privacy Laws (especially within Canada)

and have to be collected and managed under various laws and regulations.

And as much as "Just Google it" has become a household phrase, it is estimated that (Google)

search engine results only account for about 15% of what can be found on the Internet.

Whether you do your Tenant Background Checks yourself or hire a professional to do them

for you, you should still be familiar with the rules and regulations that govern being

a Landlord.

Where you reside personally and where your property (or properties) are located will

govern which rules and regulations apply to you.

The links listed here are for those of you who have properties in Ontario, Canada.

They are the "Residential Tenancies Act" which covers the legal rights and responsibilities

of both residential Landlords and Tenants; the "Landlord and Tenant Board" which assists

in resolving disputes and providing information; and the "Ontario Landlords Association" which

is part of the Canada Landlords Association and is a network of landlords helping other

landlords.

As mentioned earlier, there is also the document prepared by the Landlord and Tenant Board

entitled "How A Landlord Can End A Tenancy".

This PDF outlines a number of common and acceptable reasons for ending a Residential Tenancy -- it's

well worth the read.

For Commercial Landlords, there is the "Commercial Tenancies Act of Ontario" which outlines the

rules and regulations for Commercial rental properties;

the Ministry of Housing website where you can refer to their "Frequently Asked Questions

on the Commercial Tenancies Act" section; and the "Ontario Landlords Association" which,

in addition to having information for Residential Landlords, can also be helpful for those of

you renting Commercial properties.

Whether being a Landlord is your full-time or part-time occupation, it is a job that

should be run like a business.

And like any other business, the right team of professionals can make all of the difference.

Take the time to find a lawyer who is familiar with lease agreements and real estate transactions,

an Accountant to advise you on your book keeping and especially your tax returns,

Maintenance and Repair contacts to make sure your property is up-to-code, safe and attractive

to your tenants, and (of course) Onyx Investigations and Security

-- we can conduct cost-effective and thorough Background Checks on your prospective tenants.

Remember: The final decision to accept (or deny) a tenant's rental application is always

up to the Landlord.

Onyx Investigations and Security can help make that final decision an informed one.

If you're making your first steps towards your first tenant, or you're a seasoned Landlord,

or you're anywhere in between, we at Onyx Investigations and Security are here to help.

Contact us with your Background Check needs and any questions you may have.

Our website is www.OnyxPrivateInvestigations.ca and

our general email is [email protected].

You can also find us on LinkedIn and on Facebook.

Thank you for watching our video on Background Checks for Residential and Commercial Landlords.

We hope you enjoyed the presentation and we wish you all the best in your ventures as

a Landlord.

If you would like a copy of our Landlord Checklist or are interested in attending a Landlord

Seminar, contact us at anytime by email at [email protected] or visit

our Facebook page at onyxPI.

Onyx Private Investigations and Security.

Proudly Canadian.