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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