Do it yourself? Or get help?
If you’re looking to rent out a property in the next few months, you generally have two ways you can do it: either you list it and manage the whole process on your own, or you enlist the help of a real estate agent to assist you.
Over the years, we’ve helped a LOT of Landlords in Milton find great Tenants for their properties. This article is designed to explain exactly how the process works, and what our role can be in helping you find the right Tenant for your home.
Be prepared… choosing the wrong Tenant can end up costing you far more than the fee you’re trying to save. A bad experience can mean missed rent, damage to your property, and months of stress trying to sort it out. So what does it actually cost to get it right?
How much does it cost?
While you may find differences in the marketplace, the most common amount charged by real estate agents is one month of rent, split evenly between the two agents involved in the transaction — half to the Listing/Landlord’s representative, and half to the Tenant’s representative.
Keep in mind that these fees are usually subject to HST.
Every brokerage sets its own rates, so it’s worth confirming the exact structure before you get started, but the one-month, 50/50 split is by far the most common arrangement you’ll see.
What benefits does the Landlord receive, compared to doing it themselves?
Here are just a few of the ways you can benefit from having a licensed real estate agent represent you through the leasing process:
1
Exposure on the MLS system
Listing your property on the Multiple Listing Service (MLS) puts it in front of every real estate agent (and their Tenants) actively searching in your area. That’s a much wider pool of prospective Tenants than you’ll typically reach on your own through Facebook marketplace or word of mouth.
2
Generally higher-quality Tenant applications
Because a Tenant’s agent is also going to screen them before they ever start working together, the applicants who come to you through an agent have usually already been vetted once before you even see their application. That extra layer of screening tends to filter out Tenants who aren’t serious or don’t have strong qualifications.
3
Access and exposure, made simple
A lockbox lets your property be shown professionally on a schedule that works for prospective Tenants, without you needing to be available for every single appointment. Combined with MLS exposure, this means more qualified eyes on your listing with far less effort on your part.
4
Assistance with the paperwork, and a professional in your corner
Choosing a Tenant involves more than a gut feeling. There are all kinds of pitfalls when it comes to knowing the Residential Tenancies Act, the Human Rights Code, and much more — and getting it wrong can be costly. Having a professional guide you through the paperwork and the selection process gives you the confidence that things are being done properly, from the first showing to the signed lease.
As you can see, it’s like having your own personal concierge from the beginning right until the keys are handed over… and beyond.
What happens when an offer comes in?
When an offer comes in on your property, there are really two elements to consider… the paperwork, and the applicant.
1. The paperwork
The paperwork will spell out the main terms of the deal. It usually consists of the OREA Agreement to Lease and the Ontario Residential Tenancy Agreement (the Province’s standard form of lease).
Together, these documents cover terms like the start date, lease price, parking, utilities, laundry, insurance, keys, and the rules of the property.
It’s important that all of this is spelled out clearly up front, so there’s no confusion for either side once the Tenant has moved in.
2. The applicant
A complete application should include proof of financial viability (including one or more of the following: multiple pay stubs, a savings statement, a job letter, a co-signor or co-applicant), references, and a credit report, along with the OREA Rental Application.
Bottom line: Every Landlord wants two things — a Tenant that pays on time, and someone who will treat their property with care. All of the paperwork and background checks that go into a rental application are designed to give you confidence around exactly those two things.
Help is just around the corner…
Just contact us if you’d like some help renting out your property, and we’ll do our best to make sure you have a FIVE-STAR real estate leasing experience that you’ll love talking about.
No transaction is too big or too small for us. We believe in making your journey memorable, with the ultimate hope that you find us our next client, if we’ve earned your trust along the way.
Looking for the Tenant’s side of the story? Check out Tenants: What You Need to Know Before Renting a Home.
