Guide to Leasing
Updated: Sep 13, 2022
The leasing process doesn't have to be hard. We gathered checklists, tools, and best practices from experienced SQ agents to make sure you're well-prepared.
It is highly recommended to view this recorded session before moving on. There are tons of best practices and useful resources. Presentation deck is attached below.
Yes you can make money leasing! You just have to be organized. Diana presents her best practices in leasing.
IMPORTANT: Ontario Residential Tenancy Agreement (Standard Lease Agreement) is REQUIRED for all leases!
This form is not the same as the Agreement to Lease (OREA form 400) you will see in offers. The Standard Lease Agreement does not have to be completed during offer process, as long as it's done prior to closing. This form can be found on both Webforms and Ontario Government website (link below).
As Diana mentioned in her session - preparation is key! The rental application checklist will help guide you to collect relevant information before placing an offer. The inspection form is particularly handy for documenting unit condition when tenant moves in. We've broken down the process into representing landlords, and representing tenants:
It's all about setting the stage and landlord expectation up front. This will save you a lot of time down the road. You will be able to list application requirements in the MLS (rental application, pay stubs, employment letter, etc.) Be sure to attach Schedule A and B in the listing. More on this below.
Setting the stage - preparing the property for lease
Light staging (if vacant)
Get unit professionally cleaned and painted.
Take professional photos
If the unit is occupied, remind tenants that they will receive 24 hour notice, and to keep the unit tidy.
Review Schedule A and Residential tenancies Lease with the Landlord. This will save you time when the offers come in.
Listing the property on MLS
Use SQ listing checklist to make sure you have proper paperwork prepared
Modify below Schedule A to your liking and attach to the listing along with Schedule B. Mention in Broker Remarks and showing agents to use this Schedule A when preparing offers.
Many showing agents will call you before they show the unit - use this chance to properly vet tenants.
First thing you want to do before taking tenants out to view property is to qualify them. Make sure their budget is feasible in the current rental market. Have a chat with your clients to learn about their situation. This will help you upsell the offer when the time comes.
Setting the stage - before going on showings
Get tenants to complete rental application and obtain these documents
Last Three pay stubs
FULL Credit Report
Your client is ready to put in an offer on a property. Use the below checklist to make sure you have all the offer documents in addition to the list above (rental application, pay stubs, etc.)
Lease Schedule A is provided above with standard clauses. Once everything is signed, send the offer along with required documents. Call the listing agent to make a great case for your clients. Help the landlord see why they should accept your offer.
Always try to start a lease on the 1st of the month
If not on the first, pro-rate rent so rent due date and notice date are on the 1st of the month. This will eliminate a lot of confusion.
For example, if lease starts on Oct. 22nd – lease term would be 1 year and 10 days.
Lease would end on Oct 31st of the following year
Prorate is calculated as follows:
$3000 per month lease: Monthly rent $3000 x 12 months = $36,000 / divided by 365 days = $98.63 daily rate.
Daily Rate x number of days in prorate $98.63 x 10 days = $986.30
Schedule A is an expectation-setting document
Be clear to avoid confusion
If requesting any work to be completed, make sure there is a deadline – e.g. Property will be professionally cleaned prior to occupancy
Cannot contract outside of law
No Pets Allowed – this is unenforceable (except in condos where the by-laws do not allow pets)
Security deposits – it is illegal and Landlord can be taken to Landlord & Tenant Court for the refund
Repair Costs – sample clause: the first $100 of all repairs are the responsibility of the Tenant, the landlord will be responsible for all repairs over and above - THIS CANNOT BE ENFORCED
Proper clause - The Tenants shall be responsible for all “minor” maintenance including but not limited to changing faucet washer, filters, light bulbs etc.
Other Small Items
Include all appliances, light fixtures AND Furnace/ A/C and Hot Water Heater on inclusions on Schedule A.
Landlord cannot require post dated cheques – however it is acceptable if all parties agree
Move In Inspection
Written and photos for both Landlord and Tenant on closing date
This will set the expectation of how the unit is to be maintained by the Tenant
Your client will appreciate the attention to detail