Landlords blame real estate agents for non-paying tenants

Some Ontario landlords are blaming their real estate agents after being stuck with non-paying tenants.

In a recent CBC story, several landlords said their Realtors had verbally promised to screen applicants but didn’t follow through.

While it’s understandable to be upset when promises are broken, landlords should take note of the legal position: real estate agents aren’t contractually obligated to screen tenants unless it’s written into their service agreement – that job typically falls to a property manager. Knowing this will allow rental property owners to channel such activities through the proper channels, lessening their risk exposure and opening up opportunities for property managers.

“You hired a Realtor thinking you are going to mitigate risk, but unfortunately that is a false sense of security,” says Pamela O’Hagan, a Brampton property manager and PayProp client interviewed by CBC. “There needs to be a lot more awareness around what a Realtor is actually obligated to do for you.”

O'Hagan says she’s seen a spike in fraudulent rental applications over the past year and believes it’s pushed some landlords to look for shortcuts through their existing agent relationships.

While agents can vet tenants if contracted to do so, O’Hagan adds that property managers are better equipped to spot fraud and secure reliable renters.

And that presents an opportunity for property managers to offer tenant screening as a standalone service, bringing in extra income and earning trust from landlords who could potentially become long-term clients.

More landlord headlines

Ontario man worries his property has become rental scam bait – CTV News

Landlord advocacy group pushes for action as LTB delays drag on – PayProp blog

Canadian university cities facing surprising rental market downturn – The Globe and Mail