The Residential Tenancies Act makes it illegal to charge a tenant a late payment fee. If you are forbidden from charging a late fee is the unpaid rent even considered late??
Rent is due on the first of the month. If it’s not paid on the first, on the second I serve the tenant an N4 to collect the rent owing. This notice gives them until the 16th to pay or move out. If they don’t do anything, on the 17th the landlord can file an L1 application to have the tenant evicted and terminate the tenancy and collect the money owing. This costs $170.00.
Filling out and serving the N4 has costs involved that are not recoverable. The time spent filling out the documents, printing them, serving them etc. If we were allowed to charge a late fee these costs would be covered by the late fee.
Tenants know there are no penalties for paying their rent late. Landlords can’t charge a late fee when the rent is late and we can’t charge interest on outstanding balances.
While the rent owing and the application fees are recoverable, in most cases they aren’t collectable. Time preparing documents and going to hearings are not compensated.
When all is said and done deadbeat tenants owe landlords a lot of money. Trying to collect what is owed is another story. Then there’s those bleeding heart types that think the tenants are always right. The ones that think if the tenant can’t afford the rent the landlord should let them live rent free. We are not a charitable organization whose mission is to house people rent free and pay their heat and hydro so they can spend their money on the really important stuff – beer and restaurants.
Tuesday, April 6, 2010
Monday, April 5, 2010
Rent Guarantees
In Ontario landlords can ask for a rent guarantee. It’s perfectly legal to ask a tenant to have a third party guarantee their rent will be paid.
Welfare and Disability will quite often send the rent portion of a tenants cheque directly to the landlord. This arrangement is not a rent guarantee because the tenant can change this at any time without notifying the landlord.
In the Human Rights Code, Regulation 290/98, 2. (1) A landlord may require a prospective tenant to obtain a guarantee for the rent. By requiring a rent guarantee the landlord is somewhat protected. I say somewhat protected because you still have to collect from the guarantor if the tenants fails to pay their rent.
As a landlord we are now going to be asking the majority, if not all of our new tenants to get a rent guarantee. In doing this if the tenant defaults on their rent payment we have another person we can legally go after for payment.
From April 1 2008 to March 31 2009 the Landlord and Tenant Board received 85,840 applications under the Residential Tenancy Act. Of these 92% were filed by landlords while only 8% were filed by tenants. Of the applications filed by landlords 59,053 were L1’s to evict the tenant and terminate the tenancy for nonpayment. These applications cost landlords $170.00 each. Ontario landlords spent over $10,000,000.00 just in application fees to evict nonpaying tenants.
Welfare and Disability will quite often send the rent portion of a tenants cheque directly to the landlord. This arrangement is not a rent guarantee because the tenant can change this at any time without notifying the landlord.
In the Human Rights Code, Regulation 290/98, 2. (1) A landlord may require a prospective tenant to obtain a guarantee for the rent. By requiring a rent guarantee the landlord is somewhat protected. I say somewhat protected because you still have to collect from the guarantor if the tenants fails to pay their rent.
As a landlord we are now going to be asking the majority, if not all of our new tenants to get a rent guarantee. In doing this if the tenant defaults on their rent payment we have another person we can legally go after for payment.
From April 1 2008 to March 31 2009 the Landlord and Tenant Board received 85,840 applications under the Residential Tenancy Act. Of these 92% were filed by landlords while only 8% were filed by tenants. Of the applications filed by landlords 59,053 were L1’s to evict the tenant and terminate the tenancy for nonpayment. These applications cost landlords $170.00 each. Ontario landlords spent over $10,000,000.00 just in application fees to evict nonpaying tenants.
Thursday, March 11, 2010
The Tenant From Hell
We have been forced to deal with the tenant from hell for almost a year now. I’ll call her Evil Sheila to simplify things here.
We’ve heard every imaginable excuse out of her as to why she can’t pay her rent again this month, her cheque is late, her cheque was lost, they put a hold on her cheque, welfare put a hold on her cheque until her disability goes through. It’s an endless spewing of B.S.
Her first hydro bill was almost $650.00. She refuses to pay it. She contacted one of those free lawyers that think all tenants are perfect and all landlords are bad. We got a threatening letter from this lawyer. When Evil Sheila was asked about the lies she told this lawyer the Evil One denied contacting the lawyer. She then wanted us to hire her so she could pay her rent. We rented her a place to live, we are not required to give her a job as well. A letter was faxed to her lawyer detailing the inaccuracies (lies) in the Evil One’s statements. Never did hear back from her.
With rental arrears of $2,500.00 we served her the N4 giving her 14 days to pay in full or get out. She did neither so we file our L1, paid the $170.00, got our hearing date, served the Evil One her Notice of Hearing. At the hearing she denied getting the N4. Despite our evidence to the contrary, that she was in fact served the N4, we had to start the whole process over again. I quickly filled out the N4 and gave it to her right in front of the Adjudicator with the comment “deny getting served this one.”
She now owes close to $2,000.00 for hydro. This won’t be going up any except for interest because we disconnected her for non payment. That was March 1st, on the second they had a generator hooked up, that they wired into the panel box themselves. Neither her nor her boyfriend are electricians so it’s a fire hazard. They can afford to rent/buy a generator and put $20.00 worth of gas in it a day but they can’t afford to pay their rent or hydro.
There are 2 wood stoves in her trailer. It’s between 80 and 90 degrees in there. She’s also running 3 space heaters, 2 old fridges, a washer and dryer, and feels the need to turn on the oven as hot as it will go and leave the door open. She never turns lights off, her Christmas lights outside are on 24/7 and she wonders why her hydro bill is so high. Duh!! I guess you are stupider than I first gave you credit for.
No money for rent or hydro but they always have a fridge full of beer and a wine rack with at least 10 bottles in and another 5 or 6 bottles of other alcohol on top of the bar. They are in the local bar drinking every day. They eat in restaurants most of the time, probably because she thinks the oven is a furnace not something you would use to cook on.
Her lies at the Board Hearing, and the adjudicator taking her side have given her at least one more month to live without having to pay her rent.
We’ve heard every imaginable excuse out of her as to why she can’t pay her rent again this month, her cheque is late, her cheque was lost, they put a hold on her cheque, welfare put a hold on her cheque until her disability goes through. It’s an endless spewing of B.S.
Her first hydro bill was almost $650.00. She refuses to pay it. She contacted one of those free lawyers that think all tenants are perfect and all landlords are bad. We got a threatening letter from this lawyer. When Evil Sheila was asked about the lies she told this lawyer the Evil One denied contacting the lawyer. She then wanted us to hire her so she could pay her rent. We rented her a place to live, we are not required to give her a job as well. A letter was faxed to her lawyer detailing the inaccuracies (lies) in the Evil One’s statements. Never did hear back from her.
With rental arrears of $2,500.00 we served her the N4 giving her 14 days to pay in full or get out. She did neither so we file our L1, paid the $170.00, got our hearing date, served the Evil One her Notice of Hearing. At the hearing she denied getting the N4. Despite our evidence to the contrary, that she was in fact served the N4, we had to start the whole process over again. I quickly filled out the N4 and gave it to her right in front of the Adjudicator with the comment “deny getting served this one.”
She now owes close to $2,000.00 for hydro. This won’t be going up any except for interest because we disconnected her for non payment. That was March 1st, on the second they had a generator hooked up, that they wired into the panel box themselves. Neither her nor her boyfriend are electricians so it’s a fire hazard. They can afford to rent/buy a generator and put $20.00 worth of gas in it a day but they can’t afford to pay their rent or hydro.
There are 2 wood stoves in her trailer. It’s between 80 and 90 degrees in there. She’s also running 3 space heaters, 2 old fridges, a washer and dryer, and feels the need to turn on the oven as hot as it will go and leave the door open. She never turns lights off, her Christmas lights outside are on 24/7 and she wonders why her hydro bill is so high. Duh!! I guess you are stupider than I first gave you credit for.
No money for rent or hydro but they always have a fridge full of beer and a wine rack with at least 10 bottles in and another 5 or 6 bottles of other alcohol on top of the bar. They are in the local bar drinking every day. They eat in restaurants most of the time, probably because she thinks the oven is a furnace not something you would use to cook on.
Her lies at the Board Hearing, and the adjudicator taking her side have given her at least one more month to live without having to pay her rent.
Tuesday, March 2, 2010
Hot Tubs Allowed in Townhouse Condos
Ontario Court of Appeals has upheld a lower court decision to allow a hot tub on the patio of a townhouse condo.
Jim McMahon asked the condominium board, Wentworth Condominium Corporation 198 for permission to put a hot tub on the patio of his back yard. The board denied his request.
He put the hot tub in anyway and Wentworth took him to court seeking an order to remove the hot tub. Wentworth lost and appealed the case. The Appellant Court upheld the lower courts’ ruling.
The Condominium Act, section 98, states the unit owner must get board approval to make an addition, alteration or improvement to the common elements. Although the backyard is for the exclusive use of Mr. McMahon it is considered a common element.
The Court ruled the hot tub was not and addition as it is temporary structure. They viewed it to be no different than a picnic table, BBQ, or kids swimming pool.
Many Condominium boards will now be rewriting their rules to clarify what is and is not allowed on a patio or balcony. At some point you’re going to have owners with things on their patios or balconies that are no longer permitted under new rule changes. Then the argument will be if he can have a hot tub why can’t I?
Jim McMahon asked the condominium board, Wentworth Condominium Corporation 198 for permission to put a hot tub on the patio of his back yard. The board denied his request.
He put the hot tub in anyway and Wentworth took him to court seeking an order to remove the hot tub. Wentworth lost and appealed the case. The Appellant Court upheld the lower courts’ ruling.
The Condominium Act, section 98, states the unit owner must get board approval to make an addition, alteration or improvement to the common elements. Although the backyard is for the exclusive use of Mr. McMahon it is considered a common element.
The Court ruled the hot tub was not and addition as it is temporary structure. They viewed it to be no different than a picnic table, BBQ, or kids swimming pool.
Many Condominium boards will now be rewriting their rules to clarify what is and is not allowed on a patio or balcony. At some point you’re going to have owners with things on their patios or balconies that are no longer permitted under new rule changes. Then the argument will be if he can have a hot tub why can’t I?
Thursday, February 18, 2010
Some Really Great Information
I've just read an article written by Jim Schleiffarth that contains some really important information that landlords should include in their lease agreements. He covers both residential and commercial leases. He goes into great detail on the subject including insurance. The information is general in nature and applies no matter where you live. At the bottom of the article please give Jim a thumbs up for a job well done. He deserves it!!
Click here to read Jim's article!
Click here to read Jim's article!
Wednesday, February 17, 2010
Why Ontario Landlords Should Use the Form N4
The “professional tenant” needs to know right away that the landlord is not a charitable organization whose mission is to house everyone for free. Even if the rent is only a day or two late you should always serve the tenant with form N4. It will save a lot of headaches down the road.
If the rent is due on the first of the month and the tenant has paid, then on the second of the month you should be serving the tenant a form N4. The N4 gives the tenant 14 days to pay in full or move out.
If the tenant fails to pay what they owe and fails to move out, on the 15th day you can file either an L1 or an L2 to collect what the tenant owes and evict them.
Serving the N4 can be helpful as it creates a paper trail of communication between you and the tenant that late rent is not acceptable. You can then serve the tenant with an N8 to terminate the tenancy at the end of the term for being persistently late with their rent.
If you make it common practice to serve the N4 to everyone who doesn’t pay their rent on time none of your tenants can claim you are picking on them or singling them out over other tenants who do the same thing.
If you try to end a tenancy because the tenant is persistently late paying their rent, the Landlord and Tenant Board may choose not to end the tenancy. In the past they have made orders requiring the tenant to pay their rent in full on the date it is due. If they miss just one payment the landlord can file an application and have the tenant evicted for not following a Board Order.
As landlords we all want tenants that pay their rent in full and on time. While we understand that sometimes there may be extenuating circumstances that prevent a tenant from paying their full rent on the day it is due, this should be the exception not the rule.
If the rent is due on the first of the month and the tenant has paid, then on the second of the month you should be serving the tenant a form N4. The N4 gives the tenant 14 days to pay in full or move out.
If the tenant fails to pay what they owe and fails to move out, on the 15th day you can file either an L1 or an L2 to collect what the tenant owes and evict them.
Serving the N4 can be helpful as it creates a paper trail of communication between you and the tenant that late rent is not acceptable. You can then serve the tenant with an N8 to terminate the tenancy at the end of the term for being persistently late with their rent.
If you make it common practice to serve the N4 to everyone who doesn’t pay their rent on time none of your tenants can claim you are picking on them or singling them out over other tenants who do the same thing.
If you try to end a tenancy because the tenant is persistently late paying their rent, the Landlord and Tenant Board may choose not to end the tenancy. In the past they have made orders requiring the tenant to pay their rent in full on the date it is due. If they miss just one payment the landlord can file an application and have the tenant evicted for not following a Board Order.
As landlords we all want tenants that pay their rent in full and on time. While we understand that sometimes there may be extenuating circumstances that prevent a tenant from paying their full rent on the day it is due, this should be the exception not the rule.
Tuesday, February 16, 2010
Most Mobile Homes in Ontario Now Covered
Most mobile homes in Ontario are now covered by the Residential Tenancy Act. This is welcome news for landlords.
One of the many hats I wear at work is that of Park Manager for a tent and trailer park. We have many year round tenants. Some own their own trailers and others rent the trailer and the site from us.
Evicting the deadbeat tenants used to be a difficult affair. We weren’t zoned a mobile home park, therefore there were no laws we could use to evict the non payers.
Our only remedy used to be the Repair and Storage Lien Act, and we could only use that for seasonal campers who left their trailers on their site over the winter. So far I’ve gotten rid of eight deadbeats this way.
Tomorrow I file application with the Landlord and Tenant Board to evict 2 tenants. The first I’m using the L1 to collect what’s owing and evict the tenant. This tenant has already been served the N4 for non payment of rent. We’re also filing and L2 to end the tenancy for being persistently late with the rent. The L1 costs $170.00 to file and the L2 costs $170.00 to file. These costs are recoverable, along with the rent owing. Collecting the debt is another story.
The second tenant was served his first N5 for having debris and junk littering his lot as well as garbage that was creating a health hazard. They corrected the problem in 7 days and voided the N5. After serving the N8 to end the tenancy for being persistently late with the rent the junk and garbage started piling up again. He was served his 2nd N5, for which we are filing an application and he has no remedy of voiding this N5. He then built this structure out of scrap wood that site right on the corner of two roads. You can’t see to turn, you can’t see kids walking to the school bus. I’ve had several complaints of near misses at this corner. In fact I almost had a head on collision with a coworker as we both tried turning this corner. He’s been served an N7 for impaired safety. The L2 application covers all of the notices he was sent. I’m sure his lawyer thinks it’s over-kill. I’m just happy to finally have a way of getting rid of these professional tenants.
Once we get our Board Order evicting them I’m sure we’ll have to pay the Sherriff’s Office $350.00 to deliver vacant possession.
At least I won’t have to chase them for their rent or constantly send them clean up notices.
One of the many hats I wear at work is that of Park Manager for a tent and trailer park. We have many year round tenants. Some own their own trailers and others rent the trailer and the site from us.
Evicting the deadbeat tenants used to be a difficult affair. We weren’t zoned a mobile home park, therefore there were no laws we could use to evict the non payers.
Our only remedy used to be the Repair and Storage Lien Act, and we could only use that for seasonal campers who left their trailers on their site over the winter. So far I’ve gotten rid of eight deadbeats this way.
Tomorrow I file application with the Landlord and Tenant Board to evict 2 tenants. The first I’m using the L1 to collect what’s owing and evict the tenant. This tenant has already been served the N4 for non payment of rent. We’re also filing and L2 to end the tenancy for being persistently late with the rent. The L1 costs $170.00 to file and the L2 costs $170.00 to file. These costs are recoverable, along with the rent owing. Collecting the debt is another story.
The second tenant was served his first N5 for having debris and junk littering his lot as well as garbage that was creating a health hazard. They corrected the problem in 7 days and voided the N5. After serving the N8 to end the tenancy for being persistently late with the rent the junk and garbage started piling up again. He was served his 2nd N5, for which we are filing an application and he has no remedy of voiding this N5. He then built this structure out of scrap wood that site right on the corner of two roads. You can’t see to turn, you can’t see kids walking to the school bus. I’ve had several complaints of near misses at this corner. In fact I almost had a head on collision with a coworker as we both tried turning this corner. He’s been served an N7 for impaired safety. The L2 application covers all of the notices he was sent. I’m sure his lawyer thinks it’s over-kill. I’m just happy to finally have a way of getting rid of these professional tenants.
Once we get our Board Order evicting them I’m sure we’ll have to pay the Sherriff’s Office $350.00 to deliver vacant possession.
At least I won’t have to chase them for their rent or constantly send them clean up notices.
Friday, February 12, 2010
Why Every Rental Unit Should Have Their Own Hydro Meter.
In many high-rise apartment buildings electricity is included with the tenants rent. Every unit should have a meter and every tenant should pay for what they use.
We’ve been in the process over the years of installing hydro meters on all of the sites in the Park. We just installed them on 4 mobile home sites. One of these tenants knows what it’s like to pay your own hydro and his usage was reasonable. The other three tenants have never had to pay for hydro before. Their bills were excessive. We sat down with them all individually and educated them on how to lower their bills. When they got their second bill, two of the tenants cut their usage in half. The fourth tenants was even higher. Her hydro bill is $10.00 less than her rent that she can’t be bothered paying.
It’s tenants like tenant 4 that cause excessive hydro bills for the landlord. When utility bills increase by the allowable increase rate plus 50% of the rate the landlord can apply for an above the guideline increase.
Is it fair that all tenants will ultimately pay for the excessive use by tenants like tenant 4?
When you start making tenants pay for something that was previously included in their rent, like hydro, you have to reduce the rent accordingly. Should tenant 4’s rent be reduced to $10.00 a month?? I don’t think so. It’s a one bedroom, 1 bathroom, kitchen/dining room, living room and recroom. There are 2 wood stoves (we supply the wood so they don’t use expensive electric space heaters), yet she also uses 3 space heaters and the electric oven to keep the place about 90 degrees, 2 old fridges, washer & dryer, Christmas lights outside on 24/7, etc.
With conservation and the environment being the current buzz words, everyone needs to do their part. Making the excessive users like tenant 4 pay for what they use or have their service disconnected is the only way to deal with them.
We’ve been in the process over the years of installing hydro meters on all of the sites in the Park. We just installed them on 4 mobile home sites. One of these tenants knows what it’s like to pay your own hydro and his usage was reasonable. The other three tenants have never had to pay for hydro before. Their bills were excessive. We sat down with them all individually and educated them on how to lower their bills. When they got their second bill, two of the tenants cut their usage in half. The fourth tenants was even higher. Her hydro bill is $10.00 less than her rent that she can’t be bothered paying.
It’s tenants like tenant 4 that cause excessive hydro bills for the landlord. When utility bills increase by the allowable increase rate plus 50% of the rate the landlord can apply for an above the guideline increase.
Is it fair that all tenants will ultimately pay for the excessive use by tenants like tenant 4?
When you start making tenants pay for something that was previously included in their rent, like hydro, you have to reduce the rent accordingly. Should tenant 4’s rent be reduced to $10.00 a month?? I don’t think so. It’s a one bedroom, 1 bathroom, kitchen/dining room, living room and recroom. There are 2 wood stoves (we supply the wood so they don’t use expensive electric space heaters), yet she also uses 3 space heaters and the electric oven to keep the place about 90 degrees, 2 old fridges, washer & dryer, Christmas lights outside on 24/7, etc.
With conservation and the environment being the current buzz words, everyone needs to do their part. Making the excessive users like tenant 4 pay for what they use or have their service disconnected is the only way to deal with them.
Tuesday, February 9, 2010
Things Looking Up for Ontario Landlords.
The Landlord and Tenant Board in Ontario has increased their monetary jurisdiction from $10,000.00 to $25,000.00. Along with some tips on how to collect what’s rightfully yours.
Effective January 1 2010 landlords can recover up to $25,000.00 in arrears and property damage, up from $10,000.00. Unfortunately collecting from these “professional tenants” hasn’t gotten any easier. They are usually on welfare or disability and those cheques cannot be garnisheed.
Once you have a Board Order you can file it with the Courts for collection. Always make copies of any cheques a tenant gives you. This information is very useful when trying to have the Courts collect the debt for you.
You can also put a lien on any vehicle they own. If they sell the vehicle you get your money, or at least a portion of it.
With the information from their cheques you can attempt to garnishee their bank account. A good time to file this with the Courts is when people start getting their tax refunds.
You can also turn the matter over to a collection agency. Their fees are usually pretty steep, but you only pay if they collect. Something is better than nothing.
You can and should report them to the credit bureau.
Effective January 1 2010 landlords can recover up to $25,000.00 in arrears and property damage, up from $10,000.00. Unfortunately collecting from these “professional tenants” hasn’t gotten any easier. They are usually on welfare or disability and those cheques cannot be garnisheed.
Once you have a Board Order you can file it with the Courts for collection. Always make copies of any cheques a tenant gives you. This information is very useful when trying to have the Courts collect the debt for you.
You can also put a lien on any vehicle they own. If they sell the vehicle you get your money, or at least a portion of it.
With the information from their cheques you can attempt to garnishee their bank account. A good time to file this with the Courts is when people start getting their tax refunds.
You can also turn the matter over to a collection agency. Their fees are usually pretty steep, but you only pay if they collect. Something is better than nothing.
You can and should report them to the credit bureau.
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