Category: Landlord And Tenant

What to do if the Tenant is not paying rent during Covid-19 situation?

6/21/2020

Disclaimer: This information is not intended to be construed as a legal advice, but strictly for your information only. Please contact Trustworthy Legal Services for your independent legal advice in your particular situation. The first consultation is required prior to the retainer of your case.

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What can both Landlord & Tenant do, if the Tenant cannot make Full Payment of Rent or No Rent at all, due to COVID-19?

3/25/2020

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Trustworthy Legal Services is your Legal Expert helping people with civil disputes in the areas of Employment, WSIB, Small Claims, Landlord & Tenant, and other tribunal matters with the compensation amount of $35,000 or less. Contact for Legal Advice in Ontario at 647-891-9089.

The Landlord and Tenant Board (LTB) announced to cease all eviction-related hearings early last week as a response to the safety and health measures imposed by the government, unless the matter relates to an illegal act or serious impairment of safety. There are ample concerns from the Landlords in terms of how to deal with non-payment of rent from the Tenant during this unprecedented COVID-19 situation.

Tenant’s action

If you are a Tenant who recently experiences a layoff or a temporary layoff, it is recommended to communicate with your landlord directly if it affects your ability to pay rent in full.

I believe that most Landlords (or any average individual) tend to be more understanding during this difficult time, when most individuals and businesses are negatively impacted by COVID-19. However, the Tenant's deliberate act of not paying rent is unacceptable to any Landlord, especially when backed by no justifiable reasons but merely a response to this pandemic.

The Tenant should be able to understand that the occupancy of your rental premise is in exchange for the Landlord’s return in Rent. Any Tenant should be obligated to make partial rent payment - if not full payment at the time - unless he or she is currently suffering a proven financial hardship, and works out a payment plan with the Landlord. It also suggests that the Tenant should check out the EI Benefits currently available for those who recently lost their jobs. For those who are not qualified for EI, a newly launch of COVID-19 emergency fund released by the government will be made available in April 2020 as a source of another financial support.

Landlord’s action

As for the Landlord, please keep an open mind and be flexible, when being informed by the Tenant about his/ her inability to pay rent in full as a result of layoff and such. You can work out a payment plan with the Tenant, in order to make up the rent behind during the reasonable period of time agreed by both parties.

There may be situations when the Landlord strongly feels about no room for discussion/ negotiation with your Tenant about the issue of rent – for example, when the Tenant insists on paying no rent at all deliberately, or when the Tenant is making lower-than-expected partial rent payment which seems not to be proportional to his/ her ability to pay at the time etc. Recently, some Tenants may give Landlords their excuses of late rent payment in association with the availability of mortgage deferral program - but keep in mind that some banks approve the mortgage deferral on the principal residence only with applicable interest charge .

If the latter scenario is your case, the Landlord may consider starting the legal procedure now, despite of a suspension of most eviction-related hearings in LTB. A temporary halt to the in-person hearings only means No Immediate Eviction. The tribunal still continues to process all incoming applications, and it can minimize a prolonged scheduling of hearing once LTB resumes if you submit the application sooner. The following are the suggested steps to approach this issue of non-payment of rent:

Serve your Tenant with N4 (Xpresspost is recommended at this time), given 14 days in a termination date for payment. Remember to add 5 days to the termination date on the N4 notice when it is sent by Xpresspost or mail;
If the tenant still doesn’t pay when the termination date on the N4 notice expires, the Landlord can proceed with the L1 application to schedule for a hearing;
When the hearing will be held in the very future, the Landlord can request a standard order, which allows 11 days for the Tenant to pay for the rent arrears. Sometimes, the Tenant may ask for a time extension to pay for the rent arrears, but it is likely to be granted if the Tenant’s attempt to pay a reasonable portion of rent is demonstrated. If the Tenant seeks for a relief from delaying or refusing eviction under s. 83 of RTA based on the ground(s) of illness, loss of job, accident, COVID-19 or such, it may only be granted if the Tenant can demonstrate his/her intention of paying ongoing rent, along with the outstanding rent, within a reasonable period of time.
The Landlord can take the order to the Sheriff's office for enforcement, when the eviction order is issued by LTB and the payment isn't made within the specified time stated in the order.

If the Tenant plans to continue the tenancy, the rent arrears should be paid before the specified date stated in the L1 order, or prior to the Sheriff's coming for eviction.

If the Tenant vacates the rental premise without paying the outstanding rent stated in the L1 order, the Landlord can further proceed with the Small Claims Court to seek for the unpaid rent. The Landlord can report to the Credit Bureau after sending a demand letter or/and hire a collection agency to do so, prior to any proceeding in the Small Claims Court.   This action may impose a negative impact on the Tenant’s ability to request a loan from the bank(s), secure a rental unit due to the Landlord’s credit check, and acquire a business loan or any emergency fund etc. in the future when needed.

Hopefully, both Landlord and Tenant can work thing together during this difficult time, rather than doing more harm to go against each other, when the circumstance is already challenging to almost everyone.

*Note: It may be subject to change for the above mentioned, if there is any change/update in regards to the government policy due to COVID-19.

Disclaimer: This information is not intended to be construed as a legal advice, but strictly for your information only. Please contact Trustworthy Legal Services for your independent legal advice in your particular situation. The first consultation is required prior to the retainer of your case.

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What do the Landlord & the Tenant need to know about Non-Payment of Rent?

9/22/2018

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Trustworthy Legal Services is your Legal Expert helping people with civil disputes in the areas of Employment, WSIB, Small Claims, Landlord & Tenant, and other tribunal matters with the compensation amount of $25,000 or less. Contact for Legal Advice in Ontario at 647-891-9089.

The cost of renting in Toronto has been rising significantly over the past few years. For example, a one-bedroom apartment costs around $2,080 per month in downtown Toronto, which has an approximately 15.6% increase from last year in 2017. This is not only a bad news to all renters in Toronto, but also it will place a predicament to the Landlord as well, especially for those who still need to pay mortgages on the rental premises, by getting the rent payment late or not getting the rent payment at all. The rising cost of renting imposes a negative effect on the renter's affordability in housing, thus affecting their ability to pay rent on time.

What does the Tenant need to know when non-payment of rent occurs?

Any tenant is expected to receive a N4 notice (a Notice to End your Tenancy Early for Non-payment of Rent) given by the Landlord asking for the full amount of rent arrears within 14 days from when the notice is given (based on a monthly rental period). If this is just a temporary situation of difficulty in paying rent, the Tenant can discuss your issue with the Landlord and work out a payment plan with the Landlord.

If the rent is not paid within 14 days, the Tenant may receive a hearing notice from the Landlord and Tenant Board in regards to the non-payment of rent.

On the date of hearing, the Tenant will be given a chance for mediation with the Landlord to solve out the problem first. Under the section 83 of the RTA, the mediator can issue a mediated settlement agreement in which the terms and conditions of payment plan of rent arrears agreed by both Tenant and Landlord. Any failure in satisfying the terms and conditions of the mediated settlement agreement by the Tenant can permit the Landlord to file a L4 application so as to reinforce the eviction. If the matter of this non-payment of rent is proceeding before the adjudicator in the hearing, the Tenant is usually given 11 days to make the full payment of rent arrears by a standard Order, when outstanding rent payment from the Tenant is proven. The Tenant can void the eviction order by paying the full amount of rent arrears before the deadline. Otherwise, the Tenant must file a Motion to void with the Landlord and Tenant Board, if he or she pays the rent arrears before the Sheriff is coming to enforce the eviction.

When does the Landlord need to know when there is non-payment of rent from your tenant?

If in case there is a non-payment of rent from the Tenant, the Landlord can provide a N4 notice to the Tenant as early as 1 day late for rent due. The Landlord can ask for the full amount of rent payment from the Tenant within 14 days from when the notice is given. If the rent is still not paid within the 14-day period, then on the 15th day, the Landlord can file a L1 application (Application to evict a Tenant for non-payment of rent and to collect rent the tenant owes) in order to schedule a hearing with the Board. On the date of hearing, the Landlord will need to prove that the tenant has not paid rent, and the standard order is usually given for the Tenant to pay rent arrears within 11 days. If the Tenant still does not pay before the deadline, the Landlord can bring the eviction Order to the Sheriff Office in order to enforce it.

If the Tenant has been constantly paying rent late for at least 5 to 7 times, the Landlord has to save up all the previous N4 notices given to the Tenant with all the proof of delivery in the acceptable methods, and provides the Tenant a N8 notice (Notice of persistently late rent payment) at least 60 days before the termination date, of which it must be the last date of a rental period OR the last date of the fixed term. This method is more applicable to a month-to-month basis rental period rather than a fixed-term lease.

The non-payment of rent discussed above is under the assumption of no argument such as maintenance and repair involved which may impact on the right of the Landlord to collect rent. Otherwise, the proceeding  may be bit different from what it has mentioned before.

Disclaimer: This information is not intended to be construed as a legal advice, but strictly for your reference only in this entire website. Please contact Trustworthy Legal Services for your independent legal advice in your particular situation. The first consultation is required prior to the retainer of your case.

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What is the proper way of terminating the Tenancy with your tenant?

11/6/2016

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Since the current tenant brings up the possibility of moving out of the rental unit earlier than the lease expires (also accepted by the Landlord), you can ask her to provide you a signed N9 notice - Tenant's notice to End the Tenancy with the termination date at least 60 days (last day of the rental period) after the tenant's giving this notice to you.

The Landlord and the Tenant can sign a N11 agreement, when both parties agree to terminate the tenancy earlier and a mutual decision on its termination date.

Keeping in mind that if no further action of tenant's moving out of the unit on or after the termination date, the Landlord has to submit L3 application to the Board within 30 days from the termination date specified in the notice in order to enforce the validity of notice given mentioned above.

This is the most regular action for the Landlord to give N4 notice for non-payment of rent or delayed rent payment with the termination date usually 14 days after the notice being given to the Tenant. The Landlord can submit L1 application to the Board to evict the Tenant and collect the rent that he/she owes, if the Tenant still hasn't paid the rent on or after the termination date stated in the notice.

Although the lease addresses the Landlord's right to evict the Tenant if he or she does not pay rent over 30 days from its payment date, the Residential Tenancy Act, 2006 overrides any terms and conditions in the lease when contradictory arising. Never use your own method to terminate the tenancy and evict the Tenant due to any "for cause" reasons, but to submit the relevant application and get the Order from the Board for eviction.

There are other "for cause" reasons which are allowed by the Board for the Landlord to terminate the Tenancy and evict the Tenant by giving the appropriate notice to the Tenant and submitting relevant application form to the Board, such as

causing damages to the rental property
disturbing other tenants or the Landlord, and
illegal activity in the rental unit or residential complex.

Disclaimer: This information is not intended to be construed as a legal advice, but strictly for information only in this entire website. Please contact Trustworthy Legal Service for your independent legal advice in your particular situation. The first consultation is also required prior to my retainer of your case.

Cynthia Cheung is an experienced Licensed Paralegal & a former author of Sunday legal column at Mingpao, which is one of the most circulating community newspaper in Toronto.

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Can a tenant withhold rent payment due to the Landlord's non-compliance with repair and maintenance obligations?

12/7/2015

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Trustworthy Legal Services is your Legal Expert helping people with civil disputes in the areas of Employment, WSIB, Small Claims, Landlord and Tenant, and other tribunal matters with the compensation amount of $25,000 or less. Contact for Legal Advice in Ontario at 647-891-9089

It is clearly stated that there is a Landlord's responsibility to comply with Repair and Maintenance obligations in their rental unit under normal circumstance, which is enforced by s.20 of the Residential Tenancies Act, 2006 (RTA). It should not be the duty on a tenant to repair, unless it is determined that a tenant has willfully or negligently caused undue damage to the rental unit, the act is prescribed in s. 34 of RTA. Hence, Landlord should take "reasonable wear and tear" for normal and intended use over its useful life into consideration.

Which are the landlord's responsibilities to keep in a good state of repair?

Electrical, plumbing or heating system;
Appliances;
Carpets in the units or common areas;
Walls, roofs, ceilings;
Windows, doors, locks, lighting;
Garages, laundry rooms, patios, walkways or pools.

A landlord must also keep the rental unit CLEAN, which includes the followings:

Hallway;
Lobby Area;
Elevator;
Laundry room;
Pool;
Parking lot or garage;
Pest Control such as cockroaches and mice.

Every so often, I have encountered some unresolved disputes between tenants and their landlords on damages to be repaired in the units. Well, some tenants, at one point, would consider to withhold rent payment so as to force their landlords to execute their repair and maintenance obligations. By doing so, tenants may give their landlord's excuse to apply for an eviction order with the Board due to non payment of rent. Although the Tenant can pay outstanding rent into the Board after the Landlord's submission of relevant application. But I think this is NOT THE MOST APPROPRIATE APPROACH!

The CORRECT approach to handle this matter is to file the Maintenance Application (Form T6) with the Landlord & Tenant Board, backed by picture(s) or/and written documents to prove that the rental unit is not properly maintained.

If the tenant is right about the repair issue, the Board may

grant a rent abatement;
order the landlord to repair the damage by certain date;
allow the tenant to repair, and the landlord to pay the tenant for the cost of repair, out-of-pocket expense or other related expenses;
stop the landlord from increasing the rent until the problem is fixed;
End the tenancy.

Another approach for the tenant is to terminate the tenancy early with their landlord by giving at least 60 days' notice (Form N9), but the termination date must be the last day of the monthly rental period.

Keep in mind that, it is the Landlord's responsibilities to ensure their rental unit meets HEALTH, SAFETY, HOUSING AND MAINTENANCE standards set out in municipal bylaws or provincial maintenance standards.

Disclaimer: This information is not intended to be construed as a legal advice, but strictly for information only in this entire website. Please contact Trustworthy Legal Service for your independent legal advice in your particular situation. The first consultation is also required prior to my retainer of your case.

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What to do if the Tenant is not paying rent during Covid-19 situation?

What can both Landlord & Tenant do, if the Tenant cannot make Full Payment of Rent or No Rent at all, due to COVID-19?

What do the Landlord & the Tenant need to know about Non-Payment of Rent?

What is the proper way of terminating the Tenancy with your tenant?

Can a tenant withhold rent payment due to the Landlord's non-compliance with repair and maintenance obligations?

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