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Newmarket & Aurora Landlords – Run Tenant Credit Checks The Right Way To Make Sure You Rent to Good Tenants

September 25th, 2014 · No Comments · Aurora landlords, credit check, Newmarket landlords

 Newmarket landlords tenant credit check

Equifax Canada Warns Landlords to Only Run Credit Checks on Tenants Through an Approved Tenant Credit Check Provider Such As TVS as You Cannot Use A Mortgage Broker, Real Estate Agent or Other Friend to Run Credit Checks For you.

Successful Newmarket landlords and landlords in Aurora and the surrounding area know the important of running a credit check on tenants before you rent to them.

After all a credit check will provide you with a ton of information on a potential tenant and give you the information you need to avoid ‘professional tenants’ who will avoid paying you rent and even leaving trash behind when they move or even thousands of dollars in repair costs.

With the price of investment properties rising fast in Newmarket (if you list with a Richmond Hill or Toronto real estate agent) it’s more important than ever to find qualified tenants for your expensive rental property.

What Can Happen If You Rent To Someone Without Proper Tenant Screening?

There was a recent situation that a Peterborough landlord faced that lots of veteran Newmarket and Aurora landlords (and Keswick and Barrie) know all about.

The landlord didn’t screen the tenant carefully (no credit check) and after the tenant moved in he stopped paying rent.

It took the landlords months to evict the tenant because the Landlord and Tenant Board is so slow.

When the tenant eventually moved out, the landlord went into the property and saw a huge mess and damages that will cost thousands of dollars out of his pocket!

Rules for Landlords to Run Credit Checks on Tenants

Running credit checks is important for landlords.  Nowadays BC landlords are running credit checks even though they can charge a pet deposit and a damage deposit. It’s still worth it to them to rent to good tenants because bad tenants can lead to losses far more than the deposit.

Even in a pro-business province Alberta landlords are running credit checks before signing a lease with tenants.

Be careful!

But many landlords are using ‘friends’ who are mortgage brokers, real estate agents, bank tellers, car dealers, or insurance brokers to run credit checks on their potential tenants.

While this may have been a normal way of conducting business in the past the rules have changed and small landlords (and their friends) need to be aware of the changes and the risks involved.

It’s Worth It To Run Credit Checks on Tenants The Right Way

Let’s look what Equifax Canada says:

#1 Can I include a waiver clause in my application that allows them to use a ‘friend’?

ANSWER FROM EQUIFAX CANADA

The service agreement signed by EACH of our members clearly articulates that they will not “share” a credit file with another entity: the credit file is for their exclusive use ONLY.

Any entity that does share is in violation of this agreement.

#2 What Can Tenants Do If a Landlord Runs an Unauthorized Tenant Credit Check?

Some tenants complain they have a ‘credit hit’ on their credit reports from mortgage agents, insurance agents, etc. which they never agreed to (as they only wanted to rent an apartment).

#3 How can tenants get these unauthorized credit hits off their records?

ANSWER FROM EQUIFAX CANADA

Due to privacy legislation, once Equifax delivers a file to a member, we MUST post an inquiry (by law).

As such, we do not remove these inquiries as they are factual and the consumer has a legal right to know their file has been disclosed.

#4 What Actions Can Tenants Take for Unauthorized Credit Checks?

Some tenants who have credit hits from people they never authorized have asked if they should contact the Ministry of Consumer Services to make formal complaints that their credit data was obtained fraudulently. They would like advice on this.

ANSWER FROM EQUIFAX CANADA

Yes, they should contact the Ministry of Consumer Services who will launch an investigation.

They can reach also reach Equifax directly at the following telephone numbers to lodge a complaint and we will do an investigation:

English: 1-866-828-5961

French: 1-877-323-2598

How To Run A Credit Check On Renters?

Make sure you use a licensed and legal credit check provider to run credit checks on your potential renters.

You can join the Ontario Landlords Association for only a low one-time registration fee of $99 and start running Equifax credit checks on potential renters in minutes!

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