Many people wonder if security deposits are legal in the real estate industry. Hence, in this article, we will clarify and discuss these concerns.

First, a security deposit is the payment of a sum of money to a landlord. Indeed, as the name suggests, it provides a sense of security to a landlord. This deposit protects a landlord against damage and mishaps caused by a tenant. For example, such mishaps could be the lack of maintenance of the furniture and appliances, unpaid rents, intentional breakage, etc. The landlord keeps the deposit for the duration of occupancy.

Are Security Deposits Legal in Quebec?

Now, the burning question: is it legal for a landlord to ask for a security deposit?

Yes. Security deposits are legal. However, something that is illegal is for the landlord to demand a deposit as a condition of renting the apartment.

In that sense, a landlord cannot require that a tenant provide an amount of money to rent the apartment. Still, a tenant can voluntarily pay a security deposit, if desired.

The Voluntary Security Deposit

In other words, a tenant can offer to pay a security deposit to their landlord. However, for the agreement to be valid, the tenant cannot be forced to pay this sum of money.

For example, after the unsatisfactory result of a credit check, the tenant can offer to pay a security deposit as a sign of confidence.

Again, this cannot be the only option for said tenant to get the apartment. The landlord can suggest other solutions to the tenant, so they can prove their reliability. In the event that the tenant voluntarily offers a security deposit instead of using an endorser or turning to other solutions, the security deposit is legal.

Managing Your Rental Process

Bail Expert is a great platform to manage the apartment rental process. Indeed, this software allows you to visualize all your vacant units; to post them on the best listing websites; to keep all your rental applications directly in the software; and to fill out a electronic lease, approved by the Tribunal administratif du logement, so your new tenant can electronically sign the lease.

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Many laws and organizations regulate the real estate industry. No one can do as they please! For this reason, it is important to know what regulates the practice of property owners and managers.

Lease, renewal notice, increase notice, RL-31 slip… these are all documents that must be filled out according to specific rules and that must follow prescribed scales. 

The Famous Rent Increase

When a lease expires, a landlord is fully within their rights to ask for an increase in the monthly rent that they consider reasonable. However, the landlord must mention this in the notice they give to the tenant. Then, the tenant can accept or refuse the increase. They have a month after receiving the notice to inform the landlord of their decision. 

How to Agree on a Rent Increase

To assist parties in reaching an agreement on rent increases, the Tribunal administratif du logement has created a rent increase calculation tool. This calculation is done using the scales of the Regulation respecting the criteria for the fixing of rent.

To reach an agreement, the landlord can then present and discuss the results with the tenant. 

What Happens if the Two Parties Disagree?

In the event that the two parties cannot agree on the rent increase (or any other change to the lease), the landlord must, within one month of the tenant’s response, apply to the Tribunal administratif du logement (TAL) for what is called an application to modify the lease. This application allows the TAL to set the rent or decide on the desired change.

In order to set a reasonable price, the TAL provides the landlord with a form of Necessary information regarding the fixing of rent. The landlord then enters all the necessary information on the form and sends it to the TAL.

Subsequently, the Tribunal summons the landlord and the tenant for a hearing during which the landlord needs to provide the court with documents that support their demand, such as receipts, bills, etc.

The Role of Bail Expert

Now, you might be wondering: what is the role of Bail Expert in all this?

With Bail Expert, you can increase your rent and create renewal notices in just a few clicks. Avoid long and tedious transcriptions by choosing our letter templates. The information stored in the software allows you to fill in personalized fields in your letter templates, thus creating letters that are compliant and configured to each of your tenants’ information. 

Notices written and sent quickly, in just a few clicks! 

Today, with the rise in popularity of electronic platforms, many tasks traditionally done in person can now be done completely online. The real estate industry is no exception! Many of the day-to-day activities of a property owner or manager can now be done through software. 

Completing and writing a lease, is there anything more typical? Every year, many real estate professionals complete and sign dozens and dozens of leases, moving from home to home (or having their new tenants travel). 

To save time and energy, many landlords and property managers are turning to easy solutions like Bail Expert, our online lease creation and management software.

But a question remains: what is the value of an electronic lease in the eyes of the Tribunal admistratif du logement?

The Validity of the Electronic Lease

For the TAL, an electronic lease is just as valid as a lease signed face to face. In fact, it would be possible for the landlord to purchase a form remotely, fill it out, scan it, and send it to the tenant so that they can complete it. 

Thus, each party has a copy of the lease, which is signed by both parties. This way of doing things has the same legal value as a printed, handwritten contract.

How Bail Expert Works

By choosing a solution like Bail Expert, you can complete all these actions on a single platform. 

Therefore, you can buy your lease from the TAL, fill it out, sign it, and send it by email to your tenant in order for them to sign it. Moreover, buying a lease with Bail Expert ensures a legal and official signature via Esign Connect (included in the purchase).

Once the lease is completed, in due form, you can archive it in a few clicks and keep it on the platform. You can then consult it as many times as you want. 

Pricing

Bail Expert allows you to create, sign, and manage your leases online for the unit price of $7.95 per lease. 

But that’s not all; our software does not limit you to these features. On the contrary! Several other features for rental management and communication are available to you. 

Discover the features of Bail Expert.

Today, the real estate industry is very competitive. For this reason, it is all the more important for real estate professionals to have the best strategies. Now more than ever, everyone must be creative in developing effective tactics to stand out from the competition. 

Here are our tips for renting your units quickly:

#1: Post on the Right Platforms

First and foremost, it is crucial to find the most effective communication channels to post your vacant units. In the last few years, websites specialized in real estate and classified ads have appeared.

There are several, but Bail Expert has chosen to connect you with the best by joining forces with important players in the field. With Bail Expert, you can publish your units in a few clicks on the rental portal of Bail Expert, but also on important ad networks. Thus, we find :

#2: Take Quality Pictures of All the Rooms in Your Unit

In a highly competitive market like the real estate industry, you must showcase the assets of your units. This starts with taking quality photos of all the rooms in your units. At first glance, your potential tenant should be able to get an idea of the dimensions, divisions, and amenities of your unit. 

Remember, the first impression is the most important! You must stack the odds in your favor. By posting quality photos that showcase your units, you will have a much better chance of being contacted!

#3: The Importance of Social Media and a Website

Nowadays, your presence on social media and on the web is more important than you think. Creating a website or a professional Facebook page can be a great way for your potential tenants to get to know your offers and services. It is a first contact that can motivate them to take action. 

#4: Demonstrate that You Are Professional

Real estate is not only a competitive field, but also one where there are many scams; hence it is necessary to give confidence to your future tenants. Be professional and honest. Remain easily reachable and make sure to return calls. Do not hide any information from interested parties (inclusions, photos, prices, etc.). 

So, it doesn’t matter if you post the most trendy apartment or a more modest one, by being courteous and honest, you will surely find takers.