$40,000 In Property Damage a Lesson for Landlords

by Chris on May 22, 2017

After suffering $40,000 in damage to his property, a Saskatchewan landlord has some advice for other landlords: check your insurance policy, and screen your tenants.

This landlord reported to the news that his tenants, whose references appeared to check out, stopped paying rent while the landlord was out of the country on an extended trip. A family member swung by the property to investigate and found it abandoned, and vandalized.

That’s when the landlord returned and discovered that his insurance policy didn’t cover that sort of damage. Most policies don’t. Does yours? It may be worth making a call to see if your coverage can be expanded.

This landlord admits there was more he could have done to vet the tenants, like verifying employment and calling all of the references. He also suggests that landlords do “every background check possible” to ensure that they are not renting to the tenants from hell. That’s good advice.

Small or inexperienced landlords and those who are not physically near the property suffer the highest risk of income loss. That’s why it is especially important for those landlords to follow strict property management policies, to remain professional, and to seek help from a professional manager if necessary to keep tenants in check.

Additionally, landlords should:

Specifically call the current and previous landlord references. There is no indication that this landlord was called to provide a reference;

Verify the information in the rental application, and then run a tenant credit report to determine whether the person’s story checks out;

Sign up to Report Tenant Pay Habits. Information shared with LandlordCreditBureau.ca is being reported to Equifax Canada. Tenants with decent credit will have an incentive to pay rent — and not skip out on the tenancy agreement.

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 in 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.

{ 4 comments… read them below or add one }

William May 23, 2017 at 1:02 pm

Hello TVS President, we are attempting to file a Criminal Complaint and have charges pressed against two(2) former tenants, the revenue property is located in Victoria BC. We are perusing them under the Criminal Code of Canada, Section 430 – Mischief. I will let you know how the preliminary hearing turns out, it is scheduled for Wednesday May 24, 2017.

There is a section in the CC that entitles citizens (or landlords) to file a complaint against property damage (Section 430). Depending upon the amount of damage, the tenant may be served summarily or via indictable offense, $5000.00 is the turning point from summary to indictable offence. For the summary conviction, there is a 6 month window to file, if it is indictable, there is no time limit to file.

Just wanted to let you know with I have found in the Criminal Code of Canada


William Clary

Marv Steier May 24, 2017 at 2:11 pm

Another great article Chris. Thank you.

We are updating http://www.landlordcreditbureau.ca to include an elite tenant portfolio. this will make the renting process easier and quicker for tenant and landlord.
Reporting rent payments benefits landlords and good tenants. TVS members can report directly from the TVS website. Report Pay Habits link is to the right of START at the top of the page after login.
Reporting rent payments mitigates risk of late rent payments, no rent pay, and damage to rental property. Tenants who abuse landlords will have a bad tenant history and a bad credit history as rent payments are reported to Equifax Canada.

Guenther Management May 28, 2017 at 2:05 am

Most standard renter’s insurance policies offer protection for your belongings in case of power surges, water damage, fire, vandalism, theft, and other events out of your control. However, most do not cover damage caused by flood water, earthquakes, mudslides, or nuclear hazards. If you live near a fault line or the water or are concerned about these hazards, talk with your insurance agent about getting a separate policy.

Lana June 29, 2017 at 6:22 pm

Hi ,
I am just an apt. Tenant who believes that the Landlord Credit Rating etc is an excellent idea.
I highly recommend and encourage the opportunity to provide said history.
I also appreciate your site and such insightful and helpful information.

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