Vacancy rates of residential rental dwellings are on the increase, even if it is only a small one for the time being. In different regions of Quebec and in the greater Montreal metropolitan region vacancy rates should reach 3,7 % in 2008, according to the latest inquiry by the Canadian Mortgage and Housing Corporation (CMHC).
Such an increase in vacancy rates was expected as they had remained constant after having seen a rate of 0,6% only a few years ago. On the other hand, cycles follow and resemble each other. Now, we are on the ascending part of the slope and we should be more prudent in managing our dwellings and see to it that our vacant apartments are put on the market in an original way.
One can easily notice that the number of available apartments has substantially grown by seeing the increase in the number of small ‘for rent’- ads in different newspapers.
When the market favours the tenants in rental housing, the landlords are sometimes tempted to take risks in choosing their tenants or face empty un-rented apartments as an alternative. It is in such moments that one should remember that a vacant apartment is to be preferred over one occupied by a bad tenant. It is thus essential, in order to avoid [bad] surprises, to do a thorough background-check of prospective tenants before signing a lease, on their past credit-standing as well as on their [past] behaviour. Take your time to verify well before making your [final] decision.
We also strongly recommend you take the handwritten signature of your tenant (rental-offer forms are available for members of the APQ), before beginning a credit-rating verification. It is also very important not to transfer, show or even discuss the results of your inquiry with your prospective tenants.
When in doubt, do not hesitate to use the legal advice provided by our legal service. Our legal councillors are specialized in rental law, with many years of experience. This advice is free for our members.