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!
Thursday, February 18, 2010
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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