How to deal with a Tenant's Non-Payment of Rent

FILLING in an N4 

Notice of Termination for Non-Payment of Rent

(the eviction process for non-payment of rent in Ontario)

This blog, with the video, will show you how to begin the process of terminating a tenancy for nonpayment of rent.    The video works through a fictional tenancy and presumes arrears of rent.  The tenancy in the video is a monthly tenancy in which the rent is due on the first of each month.  The monthly rent is $1000.  The tenants paid a partial amount in October and then no amount in November, December, and January 2023.   The N4 document created in this video uses January 4, 2023, as the date of N4 Form Completion and further has the N4 being served on January 4, 2023, in the mailbox (which is the same as a personal serve, under the door, or by email if there is an agreement to serve by email in the lease).   This method of service results in a termination date of January 18, 2023.  The video discusses the termination date selection methodology as well.

I am hoping that people watching this video will find it useful to follow along and to also insert your own details--or write them down as we work through the process to properly complete an N4 Form.

This is an information video and not a legal advice video/article.  There may indeed be unique circumstances with your tenant.  You will always need to ensure that your circumstances apply and that the Ontario Residential Tenancies Act is enforceable with respect to your tenant.  It is entirely likely that there may be remaining questions after you have watched this video.  I am expecting that I may also have overlooked discussing issues that may be unique to your own circumstances.       Feel free to post comments to this blog pointing out issues or asking questions and I will try to answer and respond.  Ultimately, this article is intended for the DIY landlord or interested person.  For legal advice specific to your facts nothing will replace a direct consultation and retainer of a paralegal or lawyer.  However, watching and working through this article and video may at least give you sufficient information and grounding to understand what it is that you will need to do.

As readers of this blog know, I write with the intention of describing the legal processes of the Landlord and Tenant Board under the Residential Tenancies Act.   So, while this blog appears to assist landlords against tenants it is worth noting that a tenant facing a termination for non-payment of rent could also find the information useful as the video highlights issues that may also result in an N4 being void.  I look forward to your comments.

 

 

Chasing a former tenant for compensation for damages!

A former tenant damaged the rental unit. How do you get them to pay for the damages that they caused?   

I get this question often enough and the answer today is different than it was a short while ago.  The core of the question is whether you have to sue in the Small Claims Court or if you can file a claim at the Ontario Landlord and Tenant Board.

The old (and not current) rule was that if the tenant was out of possession then you could only pursue a claim in the Courts.  Typically that meant the Small Claims Court if the claim was under $35,000.00 (the jurisdictional limit of the Small Claims Court).   If the cost of repairs exceeded the sum of $35,000 and you intended to pursue that higher claim (and thought it worthwhile) then you could file a claim in the regular Superior Court of Justice either under the simplified rules or regular rules.   Claims for amounts in the Superior Court but not Small Claims Court are best pursued by hiring a lawyer (you can not retain a paralegal for such claims).

THE CURRENT LAW

Today, the current rule is that you must file a claim for damage to the rental unit against a former tenant at the Ontario Landlord and Tenant Board if the damages were caused by the tenant during the course of their tenancy.  Note that “tenant” includes another occupant or other person permitted in the residential complex by the tenant.   The damage caused by the tenant also, to be recoverable, must have arisen from willful or negligent conduct and the damage must be “undue”. 

How did this happen?   The Ontario legislature amended section 89 of the Residential Tenancies Act to include former tenants and now the Landlord and Tenant Board has jurisdiction over these former tenants for actions taken during the tenancy.   The fact that the LTB has jurisdiction over these former tenants for these kinds of claims has also now clarified that the Small Claims Court no longer has that jurisdiction (except for transitional cases that were ongoing at the time of the legislative amendments).

It is important to recognize that the ability to file a claim against former tenants at the LTB comes with a shorter than expected limitation period of one year (see RTA section 89 (1.1)).  The usual 2 year limitation period that typically applied for claims in the Superior Court seems to have been shortened.  Though, arguably the one year period is clearer in that the period runs from the date that the tenant gave up possession and not from when the damage was done.

The Form that you will be using to file with the Ontario Landlord and Tenant Board against the former tenant is the Form L10.   For those wondering if there are other claims that can now be made against former tenants at the LTB take a quick look through the forms because indeed there are–including rent arrears.

And lastly, if you are in the unfortunate position that your former tenant caused more than $35K worth of damage and it is indeed worthwhile to sue (because recovery seem possible) then you may still file a claim in the Superior Court of Justice.  Whether such a claim is time limited to one year from the date of the tenant vacating the unit is not entirely clear.