Renting a home is almost as complicated as purchasing a home. It takes many of the same steps but rather than a bank qualifying you, it's up to the Landlord. It can be a pretty overwhelming process and there are many legal ramifications that must be considered. A real estate professional will be able to help walk you through this process and do their best to ensure a smooth transaction.
Figure Out What You Can Afford
There's a lot more to it than just the monthly payment. If you're renting a full house, you'll likely be responsible for 100% of the cost of utilities. These are things like gas, hydro, water, and cable/internet. You'll also need to protect your belongings with mandatory Personal Content Insurance, which is inexpensive, but very important. It's important to know all the extra costs that you will be required to pay. You'll have to do some research by calling utility and other service providers to get an idea of what their services would cost.
If the costs of utilities, insurance and rent itself wasn't enough, remember that you'll also want to make sure you have enough left over for food, clothing, furniture, transportation, social/entertainment funds, but most importantly SAVINGS!
It is VERY easy to get stuck in a cycle of renting. You MUST try to save for a down payment while renting, or the dream of home ownership could slip away. Home prices generally increase over time, as will your rent rates. The longer you rent without meaningful savings, the harder it will be to kiss your landlord goodbye, and purchase a home of your own. A down payment is often the only thing that separates life-long renters from being homeowners. The ultimate goal to realize financial freedom is having a paid off home in retirement.
How Do Landlords Qualify Me?
Landlords will ask for several things to make sure they feel comfortable that you'll respect their home and will pay rent. Landlord's will typically ask for:
| Requirement | Details |
|---|---|
| Credit Reports | Equifax or TransUnion are the go-to companies in Ontario to provide credit reports. They offer a full history, including closed accounts, that landlords will look at to see the amount of debt you're currently carrying. These reports will also show how many missed or late payments you've had which is what landlords will pay the closest attention to. |
| Employment Letters | Written from the management or HR department stating length of employment with the company, your position, wage/salary, and the amount of hours you work if it is a part-time job. |
| References | From previous landlords or personal references if you've never rented before. |
| Rental Application | A real estate professional can send you this form which outlines who the tenants will be, their employment history, current and past residences, vehicles, financial obligations, etc. |
| Criminal Record Check | Sometimes the Landlord may ask the applicant to get a police record check to mitigate the risk of a tenant with ill intentions or a history of fraud. |
Start Your Search
In such a tight rental market, it can be very overwhelming looking at listings. One of the top sites to search for rentals in Alberta is RentFaster.ca. Check it out HERE.
If you have questions about renting or buying, or would like some help figuring out what area is best for you and your family, get in touch with me, and I'm happy to help. I've been a REALTOR® for nearly 10 years and happily serve clients in Cochrane, Calgary, Airdrie, Chestermere and anywhere in Rocky View County.
For access to the most up-to-date database of homes for sale in Alberta, click HERE.