Initial Steps
You want to make sure that your condominium development permits rentals, and get that confirmation in writing. Some condo bylaws have restrictions on rentals, such as a limit on the total number of rental units permitted. Other condo bylaws might have age restrictions, or a no pet policy. You would have to adhere to all these bylaws, so make sure you are familiar with them. If you do decide to rent, you need to be familiar with some key documents.

Tenant Application
Provincial legislation governs the content of the application a landlord provides a prospective tenant. Some provinces provide a set form for the application, which typically requests personal information including current address and employment, past tenancies, and third party references. You want to check out all past landlord and third party references personally. The information required for a credit check is also requested. However, the applicant must give written consent in the application document, for you to follow up.

Tenancy Lease or Month to Month Tenancy
You are not required to have a written tenancy agreement, but it is highly advisable to have one. It fixes the time that a tenant can stay in your property. The normal lease duration is six months or a year. After that period of time, you can either renew the lease with a new lease term or not. The tenant is otherwise required to depart at the end of the lease period. When negotiating a lease with a prospective tenant, you can fix whatever rate you want for the monthly rent.

Regardless of whether you have a lease or month to month tenancy, you want to request post-dated cheques in six month periods, or if a lease, for the lease duration.

The tenancy agreement, like the tenant application, is frequently provided in a sample template form by each provincial residential tenancy office in which the property exists. The contract covers a number of issues such as: the number of permanent residents permitted to live in the condo on a regular basis, and the terms and duration of the lease. The contract should also cover whether the tenants are permitted to use common areas and other facilities; for example, pool, party room, etc. The contract should cover your policy on pets and smoking. If you do permit pets, you should ask for a separate pet damage deposit. This is over and above the normal damage deposit you can ask for, which generally is equivalent to 50 per cent  of the monthly rent.

If you don’t have a written tenancy agreement, your relationship with your tenant would be deemed to be month to month. In most provinces, you cannot require the tenant to leave except under certain conditions. For example, if they are not paying rent, if you or a family member wish to live in the suite or the property, if you want to do renovations to the rental area, or if you are selling your property, and the new owners want the current tenant to leave, so that they have vacant possession. The other downside to a month to month tenancy, is that in many provinces you are limited to the amount of rent increase that you can make each year.

It would be highly advisable to prepare a draft tenancy agreement, and have it vetted by a real estate lawyer to ensure it is “bullet-proof”, covers the key issues that are important to you, and is compliant with provincial tenancy legislation.

Property Condition Checklist
You should complete a property condition inspection with the tenant at the time they take occupancy. You would both initial and sign the checklist and note any damage existing. It would also be prudent for you to take photos of the premises at that time. You would repeat this process at the time of tenant departure. If there are any damages to the property, the landlord can withhold all or part of the damage deposit.  CL