Rental Process (Owner)
Putting your property on the market
Networking and Marketing:
It is essential to network and market effectively in order to get a wide enough audience to sell your property. By signing a listing agreement with an Agent, you are passing on the responsibility of advertising and marketing your property to perspective buyers. Your agent will be responsible for the following:
- Ask you what type of buyer you want to buy your property and thus advertise accordingly.
- Offer staging tips so that your property looks its best.
- Take attractive photos to best showcase the attributes and hide the flaws of your property.
- Create an MLS data sheet which includes all the information regarding your property.
- Upload your listing on MLS so that other realtors will be able to find it via search.
- Uploading advertisements on other websites such as online classifieds and personal websites to help widen the audience.
- Set up viewings with prospective buyers and agents of buyers.
- Put up “for sale” signs if necessary.
- Network with other professionals to sell the property quickly.
- Setting up open houses so that a larger volume of buyers or agents can view the property at the same time. This creates traffic. However, open-houses are not entirely necessary, as properties are likely to sell without having one.
When working with a realtor, they will be taking care of all these aspects. You will not have to lift a finger!
Prepping Your Property To Lease
We have made an outline for you to guide you through the selling process. It can be a bit intimidating, but let’s take this one step at a time. Simple home improvements can greatly increase your chances of selling your property fast, and at the right price.
Separate Yourself From Your Space
Though you may have amazing taste, not everyone will have the same taste as you. It is important to disassociate yourself and your personal taste from your property. This creates a “blank canvas”, allowing prospective buyers to picture themselves in your property with their own personal touches.
No one likes a messy home! Viewing a property in a state of chaos not only takes away from its potential, but makes the potential buyer believe it is unclean.
RE-Arrange The Layout
The layout of your property might be ideal for you, but that is not to say you are maximizing your space! Rearranging closets and cabinets can not only open up the space and make it appear bigger, but it can also create less clutter and mess.
Rent Storage Units
This is essential. Renting storage units to store all your excessive items can greatly improve your chances of selling your property. That old wine cabinet that your grandmother gave you might have sentimental value, but to a potential buyer it is just distracting and taking up unnecessary space.
Make Minor Repairs
Making minor repairs to your home and putting those final finishes will give a newer and well-kept appearance to your property. This gives the illusion that your property is new and is not in need of any repairs. Everyone’s favorite phrase is “Move in ready!”, when trying to buy a new property. This is what you should be striving for.
Learning Your Property’s Value Before You List
It is important to know your property’s worth before listing it. In order to make a profit from all your hard work and time put into your property, you must understand the market value versus what you want to sell it for.
Get a Profession Appraisal
This is an important step to knowing your property’s value. This should be done by your real estate agent. The agent will look at the price of various properties in the area that were sold within the last couple years, and will compare. This is usually done with properties that are similar in size, features, and condition. The other properties are called “comparables”. The agent then will subtract or add value to your home depending on features or liabilities that your property might have that the others don’t.
Get a Property Assessment
Property assessment is the process of placing a dollar value to your property. This is done for tax purposes. The amount of taxes paid on your property depends on its value.
You Have Accepted The Offer
Congratulations, you have officially found yourself a tenant! However, there are still a few things to take care of before the occupancy. Have your agent collect the following from the tenant:
- 1st and Last month’s rent cheques (usually certified or bank draft)
- 10 post dated cheques
- Key deposit cheque
- Tenant content insurance
- Hydro transfer
Some of these items might be different, depending on your agreement with the tenant.
As soon as all of this is collected, you may give a copy of the keys to your agent so that they can pass it along to the new tenant. You may want to contact the tenant directly to touch base with them and answer any of their questions regarding the unit.
Choosing A Professional
Picking a Reputable Realtor
This is an important step in finding the perfect property to purchase. A reputable realtor will not only be experienced and knowledgeable in the specific area you are looking in, but they will also work hard to find you the best price available.
Signing a “Listing” Agreement
This is an agreement between you and your real estate agent. This agreement states the following:
- The beginning date and termination date of your property listing
- The listing price of your property
- The amount of commission offered to your agent (This can be a flat rate or a percentage)
- The terms and conditions to which the agent and their brokerage will be paid
- Authorization for the agent to co-operate with other agents
- The commission offered to the co-operating agent
- The terms and conditions to which the co-operating agent and their brokerage will be paid
- Authorization for the agent to advertise on behalf of the seller
- Authorization for the agent to reveal or conceal previous offers
Accepting An Offer
Reviewing Rental Application
This application is sent by the renter. In order to avoid a disastrous situation, is it important to carefully review the submitted rental application to determine whether the renter is responsible and trustworthy. The rental application includes the following:
- The official application with the renter’s job information, personal information, and past rental information included references.
- Letter from employer
- Reference contact information
- Emergency contact information
- Co-applicant information (if applicable)
- Guarantor information (if applicable)
- Equifax credit report
Reviewing Lease Agreement
This is an agreement between the tenant, the owner, and the agent. It outlines the following:
- Names of the parties
- The property address
- The rental price and the deposit amount
- The amount of commission offered to your agent
- The closing date
- Schedules (Clauses which might include additional items or services included in the lease, special provisions, additional representation, or any conditions of lease from either the owner or the leaser.
It is the responsibility of the agents of the owner and leaser to make sure that all information presented on this agreement is accurate. When the document is finished being prepared and signed, it is then presented to you for review. You are able to either accept or deny the offer, based on the information provided. As soon as you’ve decided to accept the offer, you then sign all the documents and send it to your agent so that he can let the renter’s agent know that the offer has been accepted.