Nightmare Tenant Seeks New Rental Home

by Chris on August 13, 2018

A tenant from hell recently was evicted. Now, she’s looking for another rental home. Will it be yours?

An 81-year-old Ontario landlord had to battle for months to evict a deadbeat tenant for failing to pay rent. After an initial LTB order to evict, the tenant abused the review and appeal processes numerous times. Although initially ordered to surrender the unit, the tenant came before the LTB a second time, and after being denied, she filed an appeal with the Divisional Court, which stayed the eviction orders until the appeal could be heard. Then, the tenant filed motions to delay the appeal. Nearly ten months later, the Court dismissed the tenant’s appeals.

By then, the landlord had lost 14 months’ rent and $12,000 in legal fees. She also had to pay for inspection and service charges to defend against the tenant’s malicious complaints filed with the city regarding the condition of the property. The landlord’s losses are significant — about $30,000 — and that doesn’t address the physical and emotional toll.

Fortunately for this landlord, the sheriff removed the tenant and the property is now ready to be restored. But that’s bad news for other landlords — it means this nightmare tenant now is searching for her next victim…

At TVS, we often witness the devastation left behind by nightmare tenants. That’s why we remain committed to providing landlords with the best available tenant screening tools, including:

Tenant Screening Reports

When landlords are struggling with problem tenants and contemplating the extent of the income loss, the last thing they want to ponder is whether the whole mess could have been avoided by running a tenant credit check. Tenant credit is a snapshot into the person’s ability — and willingness — to pay rent on time each month. In some cases, the credit report confirms the information that the tenant has provided. In others, it flags potential issues like chronic late payments, overextended credit, or outright lies. A landlord can choose to rent to a tenant despite a poor credit history. But that should be a choice, not a surprise.

In addition to tenant screening reports, TVS also provides landlords with free tenant screening tips. View our extensive library at LandlordTalking.com.

Report Rent Payments

TVS landlords have the opportunity to Report Rent Payments each month. That information is shared with Equifax Canada and associated with the tenant’s credit report. TVS provides a Notice to Tenant for landlords to include in the tenancy agreement that explains the tenant’s responsibilities. There is no greater incentive for tenants to pay rent on time each month than the fear that they may not be able to secure another rental — or any other credit — in the future. This system also provides a way for good tenants to build credit by proving they are financially responsible throughout the course of the tenancy.

Landlord Credit Bureau

This TVS database compiles information provided when landlords Report Rent Payments and allows member landlords to run a search. The LandlordCreditBureau.ca database is searched automatically when a landlord orders a tenant credit report through TVS. By reporting rent payments and participating in the database compilation, landlords take matters into their own hands — and thwart the problem tenants who otherwise victimize one landlord after another.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

Click Here to Receive Landlord Credit Reports.

Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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Is your rental applicant telling you the whole story?

A tenant credit check is a simple way to verify the applicant’s qualifications and gain peace of mind. At the same time, it’s an easy way to flag an applicant who is twisting the facts or holding back pertinent information.

Some landlords avoid tenant credit checks either because the applicant complains or because the landlord isn’t convinced that it’s necessary. Before throwing away the opportunity to spot a problem tenant, consider these reasons why landlords need to run tenant credit checks:

Deterrent

A tenant advocate suggests that renters with bad credit still have a viable option: shop around for another landlord. “Not everyone will require a tenant credit check.”

Is that the applicant you want to have in your property?

Don’t underestimate the power of stating “tenant background check required” in rental ads. That simple phrase can discourage a bad tenant from applying in the first place.

Late Payment History

A tenant whose credit report is impacted by late payments may be someone who will pay rent late — or not at all. This is a telltale sign of a tenant’s disregard for financial commitments.

Eviction, Criminal History

Prior evictions and criminal history are difficult to impossible for Canadian landlords to obtain. But it is likely that evictions or criminal conduct will destroy a tenant’s credit, and that will be evident in the credit report. A poor credit history can flag a bad rental history.

Judgements

A tenant who failed to pay rent to a previous landlord may not be forthcoming with that information. But the credit report can flag judgements from former landlords and other creditors that could have an impact on the applicant’s current ability to pay rent. These creditors may take steps to collect their money, and that can leave the current landlord out in the cold.

Overspending

Poor credit could be a result of high credit balances or making only minimum payments. A tenant who is overburdened with debt may not be able to recover, which can lead to late rent payments and defaults.

Overstated Income

It is inconsistent for a tenant with high income to have poor credit. This may be a sign that the tenant is overstating their income to compete for the vacancy. It can also signal that the tenant has not been at the job for long so the income may be unreliable. Either way, the applicant may not be able to afford the rent.

Conflicting Information

Credit reports can be crucial in flagging discrepancies between the information in the rental application and what is provided to a third-party credit bureau. The report may show previous addresses not listed on the application, a different employer, alias names not disclosed, or signs of identity theft — like a credit history far too long for the age of the applicant. Landlords who discover the information need to ask themselves why the applicant would try to hide it.

Nobody’s perfect, and a blemish on an applicant’s credit history doesn’t necessarily disqualify the individual. It does, however, provide good cause to conduct further due diligence. The trick is to discover this information before renting the property — rather than finding out after it’s too late.

This post is provided by Tenant Verification Service, Inc., helping landlords reduce the risks of renting with fraud prevention tools that include Tenant Screening, Tenant Background Checks, (U.S. and Canada), as well as Criminal Background Checks, and Eviction Reports (U.S. only).

Click Here to Receive Landlord Credit Reports.

Disclaimer: The information provided in this post is not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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