18.1 Understanding Tenant Motivation & Rental Market Positioning
Key Takeaways
Ask what the tenant values and describe verifiable features. Keep eligibility and marketing free of discriminatory assumptions.
Compare effective rent, utilities, parking, concessions and actual vacancy exposure on the same basis.
Confirm applicable approvals and inspection status before calling a secondary suite legal or approved.
Match lease duration and notice terms to the tenant’s needs. Include all security payments in the RTA cap.
Establish the landlord-client agreement and disclose the brokerage’s role while protecting confidential information.
Compare reasons for renting and the features that serve them
Ask about the move date, length of stay, total budget, location, travel, household use, pets and accessibility. A household waiting for a purchase to close may value a flexible move date. A person on a temporary assignment may want a known end date and a furnished unit. A tenant with a variable commute may compare parking, transit frequency and the actual walking route. Offer the same factual information and opportunity to all applicants and address accessibility when requested.
| Rental type | What to verify and describe |
|---|---|
| Detached home or townhouse | Actual yard and parking rights, number and layout of rooms, utilities, snow and yard duties, accessibility, and any association or condominium rules. |
| Apartment condominium | Verify parking or storage entitlement, elevator arrangements and applicable occupancy or animal rules. State which utilities and services are included. Confirm what the landlord must arrange with the corporation. |
| Secondary suite | Verify the authorized use, applicable building and fire safety requirements, approvals and inspections. Describe verified entry, natural light, laundry, utilities and other features. |
Use recent comparables for similar units in the same area. Separate asking rent from completed lease terms where verified. Compare utilities, parking, unit condition and concessions on the same basis. CMHC’s Rental Market Survey offers context about vacancy, turnover and average rents in covered markets. The primary survey samples eligible rental structures, so its market averages may differ from an individual secondary suite or rented condominium. Check geography, building type, date and coverage before using a figure.
For example, a comparable unit at $2,400 per month with one free month on a 12-month term has $26,400 in scheduled rent, equivalent to $2,200 per month before costs. Compare that with a 12-month offer at $2,250 and no incentive, or $27,000 before costs. The second would yield $600 more if both lease as assumed. Actual vacancy, utility costs and concessions may change the outcome. Keep agreed incentive terms clear and check Rules 80.7 and 110.06 when applicable.
Verify a suite and the terms before listing
Check municipal planning and permit records, inspection status and any applicable registry, such as Calgary’s. Applicable egress, smoke separation, alarms and other safety requirements depend on the building, approval path and code. Calgary provides separate guidance for new and certain existing suites. Some configurations can use an approved shared stair or alternative exit solution. An associate who sees missing windows or unverified alarms should record observations, inform the client and refer to the municipality or qualified authority. Wait for evidence before marketing the suite as approved or taking steps to lease premises whose legal or safe use is unresolved.
A fixed term has an agreed end date and can suit someone with a scheduled move. A periodic tenancy can suit someone who needs flexibility and is able to meet the notice terms. If occupancy continues after the end of a fixed term, verify what the parties agreed or did. Section 13 of the RTA governs the default period when a periodic tenancy is implied. Compare total recurring costs and confirm rent change rules before proposing terms.
An additional refundable pet deposit held as security shares the RTA one-month limit with other security deposits. A genuinely non-refundable fee has separate agreed terms. Record each payment and whether it is refundable in the written lease for a brokerage-arranged rental. Check accommodation before imposing any animal restriction or charge. In a condominium, confirm the owner’s separate obligations to the corporation.
Establish the brokerage role before collecting information
Rule 43 requires a signed service agreement when a licensee establishes a client relationship in property management. Define authority to market, screen, arrange showings and handle money, and record fees and duration. Rule 80.8 requires written disclosure of the nature of services, conflicts and other decision-relevant facts before seeking confidential property management information, or as soon as possible after receiving it, and before entering a service agreement. Use best efforts to obtain written acknowledgment. Rule 60.1 makes the Consumer Relationships Guide mandatory when trading in residential real estate. For this property management assignment apply the written disclosures in Rule 80.8. Rule 110.06 sets written lease content for property management brokerages.
If the brokerage represents the landlord, make its role clear to the applicant. Provide accurate facts and explain the process. Rules 41–44 govern competence, fair dealing, representations and information. An applicant may put forward a lower rent, and the brokerage can convey it within the agreed authority. The landlord’s private willingness to accept less remains confidential unless authorized or required to be disclosed. Obtain proper authority and tenant consent or statutory entry notice before showing an occupied property.
A landlord has one request for a viewing and two applications. One applicant has proposed a lower rent and a later start. Confirm which messages are inquiries, which are applications and which contain actual lease proposals. Tell the landlord what was received and when, and confirm whether to seek revised terms, decide under the stated criteria or continue taking inquiries. If the landlord authorizes a factual update to applicants about timing or activity, stay within the authorization and protect other applicants’ personal information and terms. Refuse to invent a competing proposal or exclude an applicant for a protected source of income. Confirm who may accept or sign under the service agreement and document any agreed change. Rule 110.06 governs the written lease for the brokerage’s property management services.
If a landlord may be non-resident for Canadian tax purposes, ask about ownership and the collection arrangement before agreeing to manage rent. CRA ordinarily applies 25% Part XIII withholding to gross Canadian rental income of a non-resident. A Canadian agent and the owner can seek CRA approval on Form NR6 to use net rental income as the withholding basis. Confirm who must handle remittance and reporting with the broker and a tax adviser before accepting funds or promising a net remittance.
CRA non-resident rental withholding
CMHC Rental Market Survey methodology · Calgary existing suites · Edmonton secondary suites · Alberta tenancy guidance · RECA Rules
An Edmonton landlord wants an associate to advertise a basement as a legal two-bedroom suite. The associate sees no apparent bedroom escape windows and cannot verify approval or the alarm system. What should the associate do?
Raise the observations and verify municipal approval and applicable safety requirements before representing the suite as legal or arranging its rental.
Advertise it as legal if the lease says the premises are taken as is.
Advertise both rooms as bedrooms and omit any approval information.
Use a short fixed term so that permitting rules do not apply.
A Red Deer landlord charges $2,100 monthly and asks for a $2,100 damage deposit plus a $400 refundable pet deposit held against tenancy obligations. What is the maximum combined security under the RTA?
$2,500
$2,500 if the pet deposit goes into a separate account
$2,100
$400 because only pet deposits are permitted
A tenant on a six-month work assignment wants a furnished rental, no stairs on the entrance route and a predictable total monthly cost. What should the associate verify first?
Which unit has the lowest advertised base rent, then present that rent as the total.
Which unit offers the longest lease, because a longer term always best serves a temporary assignment.
Whether the building has an elevator, then assume the route from the entrance is step-free.
Whether the available term matches the assignment, what furnishings and utilities are included, and whether the actual route is step-free.
Sections you finish are checked off in the contents.