The Tenant Guarantor Program helps landlords offset the financial risks they face when renting their property. It acts as a safety net, guaranteeing rent payments and covering other potential losses if a tenant doesn’t meet their financial commitments under a lease.

Here’s how it works: When a tenant applies and gets approved for the Tenant Guarantor Program, SingleKey acts as their lease guarantor. That means we legally take on the responsibility of paying the rent if your tenant pays late—or stops paying altogether. We also reimburse you for other losses you may incur when renting out your property.

Here’s a breakdown of what the program covers:

• Guaranteed rent payments: If your tenant misses a rent payment, SingleKey ensures you still get paid on time. Your rent is guaranteed for up to 12 months and up to $60,000.
• Property damage protection: You’re entitled to receive up to $10,000 to cover property damage caused by your tenant
• Legal fee coverage: If you decide to evict your tenant, SingleKey will reimburse you for up to $2,000 in legal fees. You’ll also have access to a paralegal team to guide you through your case.

As a result of these benefits, you can confidently rent your property to tenants you would otherwise reject due to being a higher risk. These include students, young professionals, self-employed individuals, newcomers to Canada, and anyone with a limited credit history.

To qualify for the Tenant Guarantor Program, a tenant must:

• Confirm their identity using government-issued ID
• Earn a sufficient income (rent-to-income ratio must not exceed 50%) or have enough savings to cover rent and living expenses for up to one year
• Have a rent-to-income ratio not exceeding 50%
• Provide proof of income or savings (students attending a post-secondary institution can provide evidence of enrollment, and newcomers to Canada can provide a work or study permit)
• Pay one month’s rent and a $200 refundable deposit

The Tenant Guarantor Program is geared toward tenants. But it’s also a valuable tool for landlords to reduce the risks that come with renting out a property. Here’s how.

Non-payment of rent

Missed rent payments can cause immense financial strain for your rental business. A steady cash flow is necessary to pay for your property’s expenses, such as the mortgage, repairs, and insurance. Once it stops, you’ll have to cover these costs personally. 

Unfortunately, coaxing your tenant to send payment isn’t always as easy as sending a friendly reminder via text. A financial setback may prevent them from issuing a cheque, or they may refuse to pay. There’s not much you can do to resolve the issue aside from taking legal action against your tenant. But that can take time—and drain more money from your bank account.

How Tenant Guarantor helps: As a landlord, you don’t have to worry about chasing down tenants for past-due rent or scrambling to cover your expenses out of pocket. SingleKey will cover the shortfall if your tenant fails to pay their rent. Regardless of your tenant’s predicament, you’ll get paid on time, letting you continue business as usual..

Costly evictions

Evictions are sometimes necessary to deal with troublesome tenants, especially those who fail to pay rent. However, given the financial and emotional toll they can exact, you should use them only as a last resort. The process isn’t as simple as ordering your tenant to leave the property and changing the door locks. You must follow a strict procedure, which includes issuing the tenant a written warning, filing legal paperwork, and attending a court hearing.

While the eviction process unfolds, your rental generates no income. And the more pushback and hostility you face from your tenant, the longer the process will drag on, leading to mounting expenses and sleepless nights. Evictions can come with a hefty price tag, sometimes costing thousands of dollars in court fees and legal aid. Depending on the backlog of cases in your region, they can also take months to resolve, sometimes up to a year.

How Tenant Guarantor helps: If you decide to evict a non-paying tenant, SingleKey will help cover the legal costs of the eviction proceedings, ensuring you don’t foot the entire bill. And you won’t have to fight the battle alone, either—we will connect you with experienced paralegals to assist you from beginning to end. 

Property damage

Whether due to neglect, malicious intent, or purely by accident, tenants can cause severe damage to your rental. Broken windows, battered appliances, holes in walls, stained carpets, and jammed garbage disposals are some of the issues you may face. The necessary repairs or replacements can cost a bundle, cutting into your profit and delaying the time it takes to make the property move-in ready again.

While you can use the security deposit to pay for the costs, it may barely scratch the surface of the repair bills, leaving you stuck paying the shortfall. Yes, you can sue your tenant for the damage—but there’s no guarantee they will reimburse you for the money you spent restoring your property.

How Tenant Guarantor helps: Suppose a tenant causes excessive harm to your property and fails to cover the cost of repairs, even after being ordered by the court to do so. In that case, you’ll receive compensation of up to $10,000, sparing you from footing the bill alone.

Why landlords trust the Tenant Guarantor Program

Built-in financial protection. Forget agonizing over sudden losses due to missed rent payments. Your rent is guaranteed when your tenant fails to pay, ensuring no disruption in your rental income.

Property damage protection. Fixing up your rental after its extensive damage can erode your profit quickly. And the longer it takes to make your property livable again, the more you stand to lose. With tenant-caused damages reimbursed, your rental absorbs a smaller financial hit, if any, helping you stay profitable.

Less stress and faster resolutions to tenant conflicts. Legal assistance from qualified paralegals helps streamline the eviction process. Filling out paperwork, presenting your case, and enforcing the eviction becomes straightforward, eliminating undue stress and delays.

Better chance of securing a financially reliable tenant. Tenants who qualify for the Tenant Guarantor must demonstrate the ability to pay rent on time. This requirement provides an extra layer of protection, greatly minimizing the risk of financial losses that come with renting out a property.

Our final thoughts

Managing a rental property has its share of financial risks, notably tenants who suddenly stop paying rent. The Tenant Guarantor Program safeguards you against these pitfalls, allowing you to rent out your property with confidence. Signing a lease with a tenant enrolled in the program is a no-brainer: your rental income is secure, your eviction legal fees are covered, and your property is protected from damage.

Learn more about our Tenant Guarantor Program and how it can help you stay profitable as a landlord.