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.
Showing posts with label arrears. Show all posts
Showing posts with label arrears. Show all posts
Tuesday, April 6, 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 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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