New to Canada? Here is 6 reasons why you should rent!
With no credit history or work references, renting to new Canadians can be a risky business. But there are also many benefits as Kathy Berner from Regency Property Management and Real Estate outlines
Canada welcomes over 250,000 immigrants annually, many of which seek rental properties until fully immersed and settled into their neighbourhood of choice. With no credit history and often without letters of employment, how should landlords manage this special situation?
Many are demanding three months of rent in advance to mitigate the risk. This may seem like the best way to mitigate the risk but it is also against the Residential Tenancy Act in many provinces.
In Saskatchewan, for example, the maximum security deposit that can be collected is one month’s rent, while in Manitoba it is half the value of one month’s rent.
More than 50 per cent of our rentals are to new immigrants and here are the six reasons why we choose to tap into this demographic:
- Rental payment. New-to-Canada immigrants show up like clockwork into our office on the first of every month and pay their rent in full. They often pay in cash or debit so there are very few problems with NSF cheques or chasing them for rent.
- Long-term tenants. As they need to build up credit and working experience, and wait to choose a specific area to live, they tend to rent the one unit for a long period of time.
- Good Referrals: Once they like you as a landlord, they bring you more good tenants. They have a good referral system going amongst their social circles.
- Communication. Many landlords and tenants fear that vital information can be lost in language barriers and communication. Text messaging and emails are often the best ways to ensure that both parties know exactly what is happening.
- Treat properties well. New Canadians on visa programs do not want to jeopardize their stay here and so keep on the right side of the law, especially when it comes to property upkeep. They also want to recreate a ‘home away from home’ so tend to look after the property better.
- Good for Economy. Canadian business owners have to be appreciative of the volume of labour the new-to-Canada immigrants are bringing to the Canadian economy. They are excellent workers and are keeping companies like ours in business, so Canada is obliged to provide immigrants with a good, safe place to live.
The screening process for new to Canada immigrants is also different. We generally screen tenants based on their current income and whether or not they cannot afford the unit as many will not have secured full-time employment. We also base our decisions on how many people will be living in the unit and if we get a ‘good feeling’ about them.
In the case of dealing with non-English speaking tenants, we recommend that they bring a translator for the lease signing process or we get it translated it in their language.
Immigrants bring great diversity and culture to Canada!
Kathy Berner is owner of Regency Management & Real Estate in Regina. Check out regencypropertymanagement.ca for further information or call 306-359-1655.
by Kathy Berner
